THE EFFECT OF GOVERNMENT FUNDING ON EDUCATIONAL GROWTH IN NIGERIA
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THE EFFECT OF GOVERNMENT FUNDING ON EDUCATIONAL GROWTH IN NIGERIA
THE EFFECT OF GOVERNMENT FUNDING ON EDUCATIONAL GROWTH IN NIGERIA
ABSTRACT
This research work is on
the effect of government funding on educational growth in Nigeria economy. The main objective of this research is to determine
the effect of government funding on educational growth in Nigeria. This
research work made use of secondary data which were sourced from the Central
bank of Nigeria Statistical Bulletin (2013). The data were collected for a
period of twenty four years (i.e. 1990-2013). The Ordinary Least Square
Regression Technique was employed in the analysis of the data. It was found among other things that based on the empirical
result, it is concluded that capital
government expenditure has no significant impact on the educational growth,
while Recurrent government expenditure has significant impact on educational
growth in Nigeria economy. This is due to the
fact that more money has been spent in maintaining the education system than
building new and more educational facilities over the years.
It is recommended that the federal Government should increase her funding in
educational sector especially on the capital component to boost educational
growth in Nigeria.
CHAPTER ONE
INTRODUCTION
1.1
BACKGROUND OF THE STUDY
Education funding comes from different
sources. The major one for all levels of government is public revenue from
taxation and proceeds from crude oil. Education funds are reported to be
distributed among primary, secondary and tertiary educational levels in the
proportion of 30%, 30% and 40% respectively (Balani 2003). The public funding
includes direct government expenditure ( for teachers salaries and
instructional materials) as well as indirect expenditure in the form of
subsidies to households such as tax deductions, scholarship, loans and grants.
It also includes payment for education tax fund (ETF) mainly for capital
expenditures. The main sources of fund that the Nigerian government has are
federal taxes and duties on petroleum, profits from imports and exports which
form the revenue of the federal account and the centrally collected value added
tax (VAT) introduced in 1996.
The Nigerian government was able to finance education sector considerably, as a
result of huge wealth generated from the sales of oil, whose discovery brought
fundamental changes to the economy of Nigeria. The government of Nigeria
allocated large amount of the huge wealth made from the sale of oil into expenditures
in various sectors including education. Government’s ultimate objective
according to NPE situation thereafter engendered indiscriminate establishment
of institution and increased student enrolments to mention a few. According to
Nwankwo (1992), enrolment in higher education increased from 14, 468 in 1976 to
176,700 in 1996. This pace at which education had grown in Nigeria particularly
since political independence is unparallel elsewhere among African nations
(Adesina 1982).
1.2 STATEMENT OF THE PROBLEM
Education in Nigeria is currently in crisis. There is less money to spend on
Primary, Secondary and Tertiary education. Education sector complains of
under-funding while the government accuses the sector of inefficient
utilization of available resources. The donors argue that public spending on
education should be reduced. At the same time there are growing changes at the
education level.
Moreover, there are increasing complaints about poor standard of education at a
period when globalization demands much from the educational system in terms of
preparation of skillful labour force.
There is a rampant notion which is generally felt in the Nigeria’s education
sector. The incessant strikes embarked by the ASUU and NASUU, Teachers in the
secondary and primary schools etc have really affected to the education sector.
Owing to this, the academic calendar have been disrupted, pupils and students
have stayed more than required in their studies. To the employed staff in the
academic institutions, their agitations boil down to the inability by
government to meet up the new salary scheme. More so, it is attributed to the
poor state of the learning institutions, which the attention of the government
is drawn on. These have prompted the researcher to analyze the implication of
government expenditure on the Nigeria’s economic growth.
1.3 OBJECTIVE OF THE STUDY
The main objective of this research is
to determine the effect of government funding on educational growth in Nigeria.
Other specific objectives are as follows;
(i) To examine the trend of government expenditure in Nigeria
(ii) To critically identify the limitations and barriers to educational growth
in Nigeria
(iii) Proffering appropriate framework based on the policy recommendations
made.
1.4 RESEARCH QUESTIONS
This research study, thus, should be
viewed as a preliminary analytical exercise designed to address basic questions
about government funding on the education sector in Nigeria. These include the
following:
- What
is the trend of government expenditure in Nigeria?
- What
are the barriers and limitation to educational growth in Nigeria?
- What
educational policies must be introduced by the government to encourage
rapid growth in the educational sector of Nigeria?
1.5 HYPOTHESIS OF THE STUDY
The following hypotheses will be tested
in the course of this study:
1. Ho:
Government expenditure has no significant effect on
educational growth in Nigeria.
H1: Government expenditure has significant effect on educational
growth in Nigeria.
1. Ho:
Government expenditure has no significant effect on
economic growth in Nigeria.
H1: Government expenditure has significant effect on economic
growth in Nigeria.
1.6 SIGNIFICANCE OF THE STUDY
As
the federal and state governments of Nigeria now faces development challenges
that are key to both welfare improvements for the general population and
enhancement of the education sector in particular, this study will act as a
source of
THE EFFECT OF GOVERNMENT FUNDING ON EDUCATIONAL GROWTH IN NIGERIA
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THE EFFECT OF GOVERNMENT FUNDING ON EDUCATIONAL GROWTH IN NIGERIA