Transcript Slide 1

Innovative Funding in the Nigerian
University System
Professor Julius A. Okojie
Executive Secretary,
National Universities Commission,
Abuja, Nigeria
University Education in Nigeria:
Overview 1
FEDERAL UNIVERSITIES
 University
education
in
Nigeria
started
with
establishment of the University College of Ibadan in
1948 following the Elliot Commission recommendation
of 1945.
 Subsequently, the University of Nigeria was established
in 1960.
 In 1962, the Ahmadu Bello University Zaria, Obafemi
Awolowo University Ile-Ife and University of Lagos were
established. Making 5
 University of Benin was then established in 1970.
 In 1975, the seven second generation universities were
established at Jos Calabar, PortHarcourt, Sokoto, Ilorin
and Kano. Making 13.
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University Education in Nigeria:
Overview 2
 During the 1980s, the FGN converted its military
training school (the NDA) to a University.
 In 1980, the FGN established seven universities of
Technology at Abeokuta, Akure, Bauchi, Makurdi, Owerri
Minna and Yola.
 More recently 2007, FGN established Federal University
of Petroleum Resources (FUPRE). Now 27.
 Federal universities are often categorised by age into
1st, 2nd and 3rd generation
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University Education in Nigeria:
Overview 3
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STATE UNIVERSITIES
The 1979 Constitution placed education on the
concurrent legislative list.
In 1980, the first state university, RSUST, established
Subsequently, more state universities were established
during the 1980s, 1990s and 2000s.
Nigeria now has 34 state universities.
PRIVATE UNIVERSITIES
The promulgation of Decree 9 of 1993 made provision
for the establishment of private Universities.
34 private universities have to date been issued
licenses to operate.
TOTAL NUMBER OF NIGERIAN UNIVERSITIES
Consequently, there is a total of 95 approved
Universities in Nigeria.
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In addition, there are 4 IUCs
The Funding Debacle 1
 Rapid increase in demand for university education as a
vehicle for socio-economic transformation;
 Objective of Government is to provide adequate access to
university education for those who desire it;
 Thus degree student enrollment increased from 104 in
1948; 1,395 in 1960; 40,000 in 1976;172,000 in 1988;
448,000 in year 2000; to over 850,000 today.
 The challenge has been to find the necessary resources to
support such massification of university education.
 Inability to realize funding expectations has raised concerns
about quality of university education.
The Funding Debacle 2
Carrying Capacity
System
Enrolment
Universities
NOUN
1,096,312
35,000
Carrying Capacity
715,000
100,000
Over Enrolment
381,312
-65,000
Note:
 Figures here include both degree and non-degree enrolment.
 Carrying capacity is based on available resources especially staff.
 Sources and systems of funding for Nigerian universities are
treated presently
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Funding Federal Universities 1
• The funding system - Legal framework:
– Constitutionally, the National Assembly, on
recommendation by the executive arm, makes
appropriation to all sectors including
education;
– The National Universities Commission is
empowered by Federal Law (LFN 2004, CAP
N81, Sections 4(1)f and 4(8) to receive block
grants from the Federal Government and to
disburse same to Federal universities.
Funding Federal Universities 2
• Erstwhile Block Grant funding system:
– Federal Government made Block grants to
NUC for the universities and IUCs;
– The block grants were differentiated into
capital and recurrent;
– Recurrent grants were distributed using FTE
and historical funding, etc.;
– Recurrent grants were differentiated into
Overhead and Personnel costs at ratio of
40:60;
Funding Federal Universities 3
Some NUC Funding Criteria:
• Ratio of personnel costs to overheads – 60:40
• Library 10%; Research costs 5%; Capacity building
1% of total recurrent - minimum;
• Academic to non-academic funding 60:40;
• Expenditure on central administration - 25% max.
• Internally generated revenue - 10% min.
• IGR should be no less than 10%
Funding Federal Universities 4
• The Funding System by direct legislation:
– Currently, funding is made to individual
universities through legislative appropriation by
the NASS, upon recommendation of the NUC
and consideration by FME, FMF and National
Planning Commission in a medium-term, threeyear, needs-based budget planning process.
Funding Federal Universities 5
• Current challenges:
– The Executive arm of Government provides a
budget cap (envelope) - based on projected
earnings - to all sectors including education
which influences funding for the universities;
– Federal universities are not allowed to charge
tuition fees;
– The institutions complain of inadequate
funding.
Funding Federal Universities 6:
Trends
Trends
AMOUNT RECEIVED
YEAR
Recurrent
Capital
1998
7,295,447,523.50
2,502,945,000.00
1999
10,362,430,271.98
1,469,500,000.00
2000
28,206,218,865.91
1,936,785,632.00
2001
28,419,719,502.84
4,226,691,359.00
2002
30,351,483,193.00
2003
34,203,050,936.33
2004
41,492,948,787.01
11,973,338,699.00
2005
49,453,098,168.72
8,822,869,440.00
2006
75,400,267,475.00
6,976,416,815.00
2007
76,603,850,516.00
8,981,237,934.00
Funding Federal Universities 7:
Trends
Trends
90
80
Amount Received (Billion Naira)
70
60
50
40
30
20
10
0
1998
1999
2000
2001
2002
Recurrent
2003
Capital
2004
2005
2006
2007
Funding Federal Universities 8:
Sources
Traditional Funding Sources:
Proprietor – already described
Internally generated revenue (IGR):
Investments
Charges on services
Donations received – in cash & kind
Rent of facilities
Endowments
Etc.
Funding State Universities
Traditional Sources:
• Subvention by State Government from
appropriation on education
• Deduction from Local Governments’
allocation accruing from Federation Account
(some States)
• IGR
Funding Private Universities
Traditional Sources:
• Subvention from the Proprietor
• External Linkages
• IGR
Creative Fund Generation Strategies
 Many Nigerian universities have developed creative fund
generation strategies - University of Lagos, University of
Maiduguri, University of Ilorin, University of Benin, Bayero
University Kano and Nnamdi Azikiwe University (NAU),
among many others.
 Among other strategies, NAU introduced a levy following
consultations with PTA and approval by the Board; able to
move all its operations to its main campus; generated 40%
of its recurrent needs in 2006/2007.
 Universities may utilise a variety of creative strategies such
as now follow:
Creative Fund Generation Strategies
 Alumni relations and Associations:
 Alumni tracking
 Database of alumni
 Periodic contact – maintains sense of belonging in alumni
 Transparency and accountability – Alumni representation
 Consultancy services
 Universities have enormous resource of competencies
 Capacity building services
 Advisory/Technical services
 Management development services
 Linkages/Partnerships
 Philanthropist/Donor agencies
 Collaborative research and development
 Unit to handle: e.g. FUTA’s CERAD, OAU’s ICT industry linkages.
Creative Fund Generation Strategies
 Small and Medium Scale enterprises:
 Built up shops for rent
 Cybercafés
 Fee-for-service parking lots
 Laundrettes
 Transportation services
 Renting of halls in idle time
 Ventures may create avenue for student-work programmes
 Manufacturing/Processing
 Fabricate tools from idle time of training foundries
 Food processing;
 Develop useable products from research results
Creative Fund Generation Strategies
 Community participation
 Communities could derive benefit from services rendered by
universities
 Some universities receive donations of land and infrastructure from
their host communities
 Universities should cultivate good community relations to position
themselves for such symbiosis
 Parent Forum – one avenue for community relations
 Good governance
 Is essential to fund generation
 Universities must recruit good managers to top positions
 Assurances of transparency and accountability important: structures
should be created to achieve this.
Conclusion
Opportunities abound for fund generation
University managers must be:
Suitably aggressive in identifying and exploiting
them
An office needs be created to handle IGR
development
Proceeds from IGR efforts should be seen to be
judiciously utilized as a necessary condition for
sustainability
Many universities are already doing a lot
But even they can do more
The End
Thanks for your attention
and
God Bless