1. FUNDING THE EDUCATIONAL SECTOR: THE NEED FOR ORIGINAL THINKING. A PAPER PRESENTED AT THE 3 RD CONVOCATION OF ADEKUNLE AJASIN UNIVERSITY, AKUNGBA-AKOKO. 9 TH MARCH 2011. 1

2. OUTLINE Introduction Funding framework for the Educational Sector Funding requirements of the Educational Sector Funding in other countries Suggested funding framework Conclusion 2

3. INTRODUCTION Educational Sector is facing numerous challenges which are traceable to poor funding. The Government has been the primary source of funding for the educational sector. There is the need to explore alternative means of funding. 3

4. THE EXISTING FUNDING FRAMEWORK FOR THE EDUCATIONAL SECTOR Primary and Secondary Schools There is significant involvement by the private sector which reduces the burden of government financing. The Government must nonetheless fulfill its obligations under the Universal Basic Education Programme by financing the provision of basic education(primary and junior secondary school) 4

5. THE EXISTING FUNDING FRAMEWORK FOR THE EDUCATIONAL SECTOR The federal and state universities are primarily funded by the government. Private universities are managed commercially and funded by tuition paid by the students. Apart from government allocation and tuition, other sources of funding for government owned institutions include: Internally generated revenue Educational Trust Fund Donations 5

6. THE REQUIRED FUNDING Statistics in England reveal that: Primary school education for each pupil costs £3,317 per annum Secondary school education for each student costs £5,515 per annum Tertiary education for each student costs £9,715 per annum The Nigerian government cannot single handedly bear the cost of education. 6

7. FUNDING IN OTHER COUNTRIES India Highly commended educational system Largest higher education system in the world. Majority of universities and almost all research institutions are public. Higher education represents less than 1% of its GDP. Higher education received 12% of the share of total expenditure on education in 2000-01. Central government provided one-quarter of funding, with the rest coming from States However, there has been a deterioration in the financial support provided by the government 7

8. FUNDING IN OTHER COUNTRIES Alternative funding explored by India Raising tuition fees and full cost recovery of other fees. Participation of the private sector (both non-profit and proprietary providers). 8

9. FUNDING IN OTHER COUNTRIES Ghana One of the best educations systems in Africa. Universities are highly dependent on government funding, with the government accounting for 90% Ghanaian government has stated its inability to act as the sole financier of tertiary education. Ghana has responded with a relatively successful diversification strategy. 9

10. FUNDING IN OTHER COUNTRIES Ghana Donors or Development Partners (supplementary to Central Government). Development partners, in conjunction with government, have committed substantial resources to Ghanas tertiary sector, since 1986. Since 1997 approximately US $400 million has been loaned or granted to the Education Sector. On the national level, there is the Ghana Education Trust Fund (GETFund), established by Parliament in 2000 raising the already existing Value Added Tax by 2.5%, for the purpose of supplementing government budgetary allocation Imposition of fees Long tradition of free university education for Ghanaians as propagated by President Kwame Nkrumah. However, due to the need for financing and low government funding, students have been made to partly contribute towards their education. Income generated from this is used for the development of universities programs. 10

11. FUNDING IN OTHER COUNTRIES Egypt Considered the oldest education system in the world. Largely composed of public universities and on a smaller scale, public non- university institutions. Education in public schools used to be wholly free. However, the states share of higher education finance for universities was reduced to 85 percent in 1994-1995, leaving the universities to generate the remaining 15 percent through various revenue diversification strategies. 11

12. FUNDING IN OTHER COUNTRIES A. Imposition of fees Began by the imposition of fees for alternative academic programs, which are perceived to be of high quality. Subsequent fees were also introduced. Further, the universities have adopted the process of charging nominal fees. B. Other sources of income generation Specialised university centres also generate income from: patent rights provision of continuing education to industrial employees manufacturing intermediate industrial products language instruction private donations 12

13. SUGGESTED FUNDING FRAMEWORK Participation of the private sector Banks and other financial institutions should be encouraged to give loans to students. Companies in Nigeria should be encouraged to provide research grants. Given the recent activities of the oil, construction, telecommunication and banking industries, these sectors are the most well placed to contribute to the funding of the educational sector. 13

14. SUGGESTED FUNDING FRAMEWORK Payment of Tuition The Government cannot provide free education at all levels. Nigerians must refrain from being over-dependent on government funding. Grants, loans and scholarships should be made available to students who have proven that they cannot afford tuition. 14

15. SUGGESTED FUNDING FRAMEWORK Internally Generated Revenue It has become pertinent that an increasing fraction of university funding be sourced from internally generated income. A large number of universities have attempted to increase their income by commercial ventures such as hotel services, publishing, consultancies, sales and marketing, etc. Such attempts at generating internal revenue should be encouraged. 15

16. CONCLUSION(1) A comparison of the Nigerian educational sector to peer countries like India, Ghana and Egypt makes it obvious that the government is incapable of solely funding education. Nigerians must adapt to this truth and explore alternative means of funding otherwise the already challenged educational sector may become further distressed by over-dependence on governments scarce resources. 16

17. CONCLUSION(2) While this paper does not purport to provide an answer to all the challenges facing the educational sector in Nigeria, it is quite certain that adopting the suggestions made herein is a step in the right direction which would eventually lead to the much desired revolution in Nigerias educational sector 17

18. THANK YOU. 18