Economic Lifecycle and Dependency: Implications for Human Capital Development and Social Policy in Nigeria

Olanrewaju Olaniyan, University of Ibadan
Adedoyin Soyibo, University of Ibadan
Akanni Lawanson, University of Ibadan

The main purpose of this paper is to quantify the economic life cycle deficit for Nigeria using the National Transfer Accounts framework. The results reveal that, nationally, Nigeria experiences a life cycle deficit of more than 4 billion naira, despite the fact that a life cycle surplus appears for 30 years for people aged between ages 33 and 63 years. The burden however falls mainly on children who have limited social protection. The deficits are financed through intergenerational flows to the deficit age groups. Low human capital however accounts for the large deficits through low income generation, which is predominantly from self-employment which is mostly in the informal sector. The deficit is also occasioned by the burden of low human capital is unfairly skewed against the poor. The study implies that government will need to provide incentives to enhance the building human capital and generation of asset income to adequately finance the life cycle deficit.