Government Funding of Universities In Nigeria: Strategic Policy Options

Abstract

University Education in Nigeria has gone through significant changes within the past three decades from the modest beginnings in the 40s to become what has today been described as a veritable conglomerate judging from its sheer magnitude and complexity. The number of universities had increased from 5 in 1962 to 52 in 2003 while student population had increased from just over 5,000 to about 500,000 within the same period. The phenomenal growth and expansion in university education in Nigeria brought with it concerns about curricular relevance, quality of programmes, equity and access. This was largely due to the stress put on the institutions by spiraling demand in the face of limited expansion in physical facilities and academic staff to cater for this demand. This has been attributed largely to the low level of funding the institutions have been receiving from both the Federal and State Governments. This study specifically explored the problems associated with the financing of Federal Universities in the country in addition to relevance of the budgetary process, adequacy of the funds and internal allocation and utilisation. It also examined the possible sources of additional revenue to the institutions including cost sharing, institutional entrepreneurship and student support schemes. Data was collected from the National Universities Commission and the twenty-four Federal Universities funded through the Commission. Interviews were conducted with some Vice Chancellors and Directors of Academic Planning of the Universities. Recurrent funding of the Universities over the study period was found to be at an average of sixty-eight percent of requests while seventy-four percent of the released funds were allocated to personnel costs. The level of shortfall in overhead costs was on average sixty percent of requested funds. Similarly, no releases were made for capital expenditure in 2002. Internally generated revenue accounted for about nine percent of total recurrent requests of the institutions. New financing and fund allocation formula including strategies for cost sharing, diversification of revenue sources and establishment of Direct Teaching and Research Vote were proposed. The implementation of these recommendations would ensure regular, adequate, sustainable and timely financing of Federal Universities in the country.