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Alternative Modes of Financing Higher Education in Nigeria and Implications for University Governance

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Alternative Modes of Financing Higher Education in Nigeria and Implications for University Governance ALTERNATIVE MODES OF FINANCING HIGHER EDUCATION IN NIGERIA AND IMPLICATIONS FOR UNIVERSITY GOVERNANCE FINAL REPORT SUBMITTED TO ASSOCIATION OF AFRICAN UNIVERSITIES, ACCRA, GHANA Principal Investigator: Professor A. I. Odebiyi Dept. of Sociology/Anthropology Co-Researcher: Dr. Olabisi I. Aina, Dept. of Sociology/Anthropology Project Duration: 24 months Institution: Obafemi Awolowo University, Ile-Ife, Osun State, NIGERIA. January, 1999 1 TABLE OF CONTENTS PAGE Table of Contents ... ii List of Tables ... iii List of Figures … iv Acronyms … v Acknowledgements … vi Executive Summary ... vii CHAPTER ONE: INTRODUCTION ... 1 a. A General Background ... 1 b. Study Objectives ... 4 c. Study Justification ... 5 CHAPTER TWO: LITERATURE REVIEW ... 6 CHAPTER THREE: THEORETICAL ASSUMPTIONS AND CONCEPTUAL FRAMEWORK ... 10 CHAPTER FOUR: METHODOLOGY ... 13 CHAPTER FIVE: RESULTS AND DISCUSSIONS ... 18 I. Data from Secondary Sources and In-depth Interviews... 19 II. The Community Survey ... 67 III. Data from Focus Group Discussions ... 73 CHAPTER SIX: SUMMARY, CONCLUSIONS, AND POLICY IMPLICATIONS OF FINDINGS ... 81 REFERENCES ... 87 Appendix 1 ... 89 Appendix 2 ... 90 Appendix 3: 91 Appendix 4: 92 2 LIST OF TABLES PAGE Table 1: Data collected in the selected universities … 18 Table 2: Student enrolment in the selected universities (1985-1995) … 24 Table 3: Total Student Enrolment by University and Discipline 1996/97 … 24 Table 4: Summary Data for 1996/97 Session in the Selected Nigerian Universities … 25 Table 5: Sources of University Revenues …. 33 Table 6: Universities and types of sources of funds most emphasised … 33 Table 7: Sources of financing by university (1985-1995) in Million Naira … 34 Table 8: Actual Income by Major Sources at OAU Ife (1990-1996) in Million Naira … 34 Table 9: Actual Income by Major Sources at UI (1990-1996) in Million Naira … 35 Table 10:Actual Income by Major Sources at UNILAG (1990-1996) in Million Naira … 35 Table 11:Actual Income by Major Sources at the OSUA In the last 6 years …. 36 Table 12:Yearly total public investment expenditures on University education in Nigeria by student enrolment and by the rate of inflation in the economy … 37 Table 13:Commercial Ventures, Unilag Lagos … 42 Table 14 Commercial Ventures, UI Ibadan … 43 Table 15:Commercial Ventures, OAU Ife ……. 43 Table 16:Commercial Ventures, OSUA Ado-Ekiti … 44 Table 17:Commercial Ventures, Unilag Lagos: Profitability Assessment …. 44 Table 18: Commercial Ventures, University of Ibadan: Profitability Assessment …. 45 Table 19:Commercial Ventures, OAU Ife: Profitability Assessment …. 45 Table 20:Commercial Ventures, OSUA Ado-Ekiti: Proftability assessment. … 46 Table 21:Overall Assessment of specific income generating activities by university … 46 Table 22: Recurrent Expenditure by Type of Service at OAU Ife in the last 6 Years ….. 52 Table 23: Expenditure on Services item as a Percentage of the total recurrent expenditure (OAU Ife - 1990-1995) … 52 Table 24:Recurrent Expenditure by type of service at UI Ibadan 1990-1996 (in million Nigerian Naira) … 53 Table 25:Expenditure on Service items as a Percentage of the Recurrent total Expenditure at UI, Ibadan 1990-1996…. 54 Table 26:The Income Generating Activities supported by the Management staff (Unilag and OSUA)… 57 Table 27: The income generating activities supported by the Management Staff (UI and OAU) … 58 Table 28: Management Reactions to NUC Directive that Universities should generate Ten Percent of its income … 59 Table 29:Management Perception of the Effect of the Income Generating Activities on Teaching and Research in the selected Universities … 59 Table 30:Management views on company tax on education … 60 Table 31:Management’s views of the roles of government/student and the community in the financing of higer education... 60 Table 32:Devaluation in the annual basic salaries of the Nigerian academic (1981 and 1991 Compared)... 64 Table 33:Total annual salaries of academic staff in the Nigeria compared to those of other African Countries (in US Dollars) - as at 1991 … 65 Table 34:Annual basic salaries of the University academic staff in Nigeria compared to those of their African Counterparts (in US Dollars )… 65 Table 35:Salary Structure for public servants in Nigeria … 66 Table 36:Factors responsible for the poor financial status of the selected universities … 66 Table 37:Current working conditions in the Universities… 67 Table 38:Socio-economic characteristics of the society survey … 68 Table 39:Sources of financing University education known to members of the society .. 70 3 Table 40:Sources adjudged by the public to be most reliable for University financing .. 70 Table 41:Sources of generating income in the Nigerian Universities and Public Support or non-support for them … 71 Table 42:Public assessment of sources of financing and their effects on leading and research … 71 Table 43:Distribuition of respondents by sex and by whether or not federal government should finance higher education alone … 72 Table 44:Education as a Factor for Assessing Perspectives on Government Financing of Higher Education in Nigeria … 72 Table 45:FGD Characteristics ….. 73 Table 46:Functions and Benefits of Higher Education .. 74 Table 47:The Effects of the present poor financial status of Nigerian Universities on students, parents, and teachers: 77 Table 48:Assessment of Alternative Modes of Financing Higher Education … 79 4 List of Figures: 1. Conceptual Framework for the Study … 12 2. Map of the Study Area …… 17 ACRONYMS: AAU - Association of African Universities ABU - Ahmadu Bello University, Zaria ASUU - Academic Staff Union of Universities FGDs - Focus Group Discussions CIRD - Centre for Industrial Research and Development LASU - Lagos State University, Lagos NUC - National University Commission NGOs - Non-Governmental Organisations OAU Ife - Obafemi Awolowo University, Ile - Ife OSUA - Ondo State University, Ado - Ekiti PG - Post Graduate R&D - Research and Development SAP - Structural Adjustment Programme S & T - Science and Technology Unibadan - University of Ibadan, Ibadan Unilag - University of Lagos, Lagos Unifecs - University of Ife Consultancy Services UNN-Nsukka - University of Nigeria, Nsukka UNESCO - United Nations Educational, Scientific and Cultural Organisation Unijos - University of Jos, Jos UPS - University-Productive Sector 5 ACKNOWLEDGEMENTS The financial support received from the Association of African University (AAU) for this study is highly appreciated. We are also grateful to Dr. Ulrich Teicher (Centre for Research on Higher Education and Work, University of Kassel, Germany) who served as a resource person to this project. Special thanks go to Professor Akilagpa Sawyerr through whom AAU made its grants available to us. His encouragement, personal interest in the project, and his monitoring skills made this project a reality. Finally, we are grateful to those who responded to our numerous enquiries, and those who made important university financial records available to the project. 6 EXECUTIVE SUMMARY Under-funding has been identified as one of the major problems presently facing the university system in most of the African nations, Nigeria inclusive. With the continued dwindling of the national fortunes, the Nigerian government is finding it more and more difficult to meet its financial obligations to the university system. Statutorily, the government bears the costs of higher education in the country, and in many cases, political agitation have beclouded attempts to source funds through payment of tuition, and other levies. This is because, over the past years, the payment of tuition in Nigerian tertiary institutions has been politicised, and in fact, free education often remains central to political campaigns and manifestos. The realities of SAP and general economic deterioration have forced the government to shift grounds in the management of tertiary education in the country. For example, the government currently makes it mandatory for each federal university to source internally for 10% of its total yearly funds. At the micro level, many universities have responded by the establishment of profit making commercial ventures, which can generate alternative funds to the university. Following this background, the present study has as its primary objectives, identifying the different sources of funds available to the Nigerian universities; the adequacy or otherwise of these different forms of funds; and the implications of these alternative modes of funding on university governance and performance. The present financial state of the Nigerian university system is explained using the African political economy model, which focuses on how political and economic forces shape the contexts within which the Nigerian Universities carry out their primary functions, including teaching and research. The study takes the option of a descriptive model. It thus uses mostly qualitative methods of data gathering, including - Interviews (using seem-structured questionnaires); In- depth interviews; and Focus Group Discussions. Many of the baseline data were collected using government reports and records, while casual and direct observation of respective universities’ facilities helped to describe precisely the physical structures in these universities. A total of 4 universities were surveyed - 3 first generation universities (OAU Ife; UI Ibadan; and UNILAG Lagos); and a State university (OSUA, Ado - Ekiti). The persons targeted for the in-depth interviews include - the vice-chancellors; the university
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