This study examined the effect of labour productivity and education expenditure on economic growth in Nigeria from 1986 to 2021. The ex-post facto design was employed in which econometric tools were used to analyze the data collected from the secondary sources about the variables. Descriptive statistics were used to describe the properties of the data set, followed by testing for the stationarity properties of the time series used. The Structural Vector Autoregressive (SVAR) model was used to account for the transmission mechanism.

The findings of the study revealed that that economic growth responds positively to labour productivity and in a similar way, labour productivity responds positively to Education expenditure. The study concluded economic growth as central objective of labour productivity from government expenditure on education and achievements in economic growth can make a critical contribution to labour productivity. The recommends that government should as a matter of urgency; resolve the trending challenges (wages and allowances) amongst labour unions in Nigeria. A survey-feedback strategy should be promoted together with sensitivity training and effective leadership for labour force. This would protect the economy from further negative and insignificant trends in Labour productivity and as such impact economic growth significantly especially in the long run.

The National Productivity Centre should strategically work with civil society to surmount the limitations on it by fragmentation or compartmentalization of its roles, responsibilities and mandate that prevents it from effectively collaborating with other departments and ministries of the Government in resolving problems that adversely affect and influence productivity.