Innovative Funding in the Nigerian University System Professor Julius A. Okojie Executive Secretary,...

Innovative Funding in the Nigerian University System

Professor Julius A. OkojieExecutive Secretary,

National Universities Commission,Abuja, Nigeria

2

University Education in Nigeria: University Education in Nigeria: Overview 1Overview 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.

3


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

4


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. 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.

6

The Funding Debacle 2

Carrying Capacity

System Enrolment Carrying Capacity Over Enrolment

Universities 1,096,312 715,000 381,312NOUN 35,000 100,000 -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

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.


• 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;


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%


• 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, three-year, needs-based budget planning process.


• 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 YEAR

AMOUNT RECEIVED

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

Funding Federal Universities 8:Sources

Traditional Funding Sources:Proprietor – already describedInternally generated revenue (IGR):

InvestmentsCharges on servicesDonations received – in cash & kindRent of facilitiesEndowmentsEtc.

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:


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.


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


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 generationUniversity 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 lotBut even they can do more

Thanks for your attention

and

God Bless

The End

Innovative Funding in the Nigerian University System Professor Julius A. Okojie Executive Secretary,...

Documents

Transcript of Innovative Funding in the Nigerian University System Professor Julius A. Okojie Executive Secretary,...