Innovative Funding in the Nigerian University System

1. Innovative Funding in the Nigerian University System Professor Julius A. Okojie Executive Secretary, National Universities Commission, Abuja, Nigeria

2. 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.

3. 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

4. University Education in Nigeria: Overview 3 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

5. 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 1,096,312 715,000 381,312 NOUN 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

7. 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.

8. 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;

9. 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%

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

11. 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.

12. Funding Federal Universities 6:Trends Trends

13. Funding Federal Universities 7:Trends Trends

14. 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.

15. 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

16. Funding Private Universities Traditional Sources: • Subvention from the Proprietor • External Linkages • IGR

17. 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:

18. 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.

19. 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

20. 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.

21. 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

22. The End Thanks for your attention and God Bless