THE EFFICIENCY OF EDUCATION EXPENDITURE IN NIGERIA (1990 – 2015)
1.1 BACKGROUND OF THE STUDY
funds are meant to meet those basic needs that the government owes as an
obligation to its citizenry (Corbally,
1962, Osuntokun, 2003). It is the duty of the government to take care of all
the public financial expenditures, in other to aid the development of the
country; of which education is one of such public expenditures.
Funding of the education sector, including the
human resources involved are part of public finance which the government is
saddled with the responsibility of ensuring its effectiveness, as it beholds on
the government to ensure the proper utilization of resources allocated to the
education sector (Adesua, 1981, Charles, 2002). Therefore, funding of the
education sector is an important branch of Economics of Education
(Akangbou, 1986, Adeyemi, 1998).
education sector in Nigeria through the budget and planning department of the
country classifies education expenditure under the social and community
services sector; thereby not giving much importance to the education sector
itself is a part of both an individual and country’s life that its importance
cannot be over emphasized. Education helps to shape and mould both an
individual and a country at large. It is very imperative to know that for other
sectors of the country to function well, education is required. Of cause, it is
well known that without education there will be no competent hands to control
the affairs of the other sectors of the country. In summary of the preceding
sentences, education improves all other sectors of the economy (Anyanwu et al.,
1999). Ola (1998: 15) once said, “If the economy of a nation moves at a very
slow pace, their budget on education should be checked closely”. This is why
some highly developed countries allocate about 30-35% of their annual budget to
education (Aboribo, 1999:61).
developing countries have the objective of ensuring that education is made open
to all, not minding some financial constraints; most especially basic
it is glaring how the education sector of Nigeria is mishandled by the
government, making it a shadow of it old self; with poor or very unstable
remuneration for teachers coupled with dilapidated structures and
infrastructure for teaching (FRN, 2000: 52). Nigeria education system is
decorated with dilapidated structures, too many students occupying a classroom,
the environment is unkempt and the teachers do not attend to their duties as
and when due. Due to these, some of the schools are closed and in some cases
teachers embark on strikes, thereby slowing down the pace of education
development in the country.
relevance of adequate funding of the education sector cannot be quantified.
Ozigi (1977:45) argued that one of the resources an organization requires in
fully achieving its aims and objectives is financial resources, as the
remuneration of the staff; maintenance of the basic infrastructure of the
organization requires the use of money.
talks have been held in subsequent times to curb the problem attached to
education and its funding. Why because education is a powerful tool for correcting
most, if not all the vices greeting the country.
(2002), in his research revealed that little has always been allocated to meet
the needs of the education sector and even the little allocated are not
properly utilized. It is crystal clear that budgets on education and what is
being shared from the Gross Domestic Product (GDP) has been decreasing. Between
1970 and 1998, the budgets on education were less than 25% of GDP, which did
not meet UNESCOs’ minimum standard of 26% (CBN 2002). It is equally
embarrassing to note that some neighboring countries like Ivory Coast and
Senegal which we presume smaller than Nigeria have actually met UNESCOs’
standard. The inefficient funding of the education sector of Nigeria has
affected the growth of the sector, the country’s GDP and the growth of other
sectors of the economy. A closer assessment at the funding of the education
sector from 1990-2015 proves that the sector is the least funded in the
this study is meant to examine the efficiency of education expenditure in Nigeria
from 1990-2015 and make recommendations were necessary.
1.2 STATEMENT OF THE PROBLEM
decline in the education sector of Nigeria is tied to many factors ranging
Misappropriation of funds
Incessant strikes by teachers
Non-availability of teaching materials
after-effects of the aforementioned points are not just on the teachers, both
the government and the students suffer from it. When the education sector is
not well funded, the teachers are not motivated to discharge their duties
effectively, and this will tell from the performance of the students; as they
will not be well equipped to compete with their counterparts in other
countries. This draws to mind why Nigeria still produces half-baked graduates
the government is not left out as the growth of the country is threatened if
the education sector is not well funded. It will affect GDP, and even
discourage foreign investors. Also, the government will lose in that, a country
without sound education system stands the chance of being ride by other
countries with vibrant educational system.
OF THE STUDY
major objective of this study is to examine the efficiency of education
expenditure in Nigeria from 1990-2015.
Other specific objectives include:
To examine the efficiency of
educational expenditure on school enrollment in Nigeria
To identify the rate of growth of
school enrollment in Nigeria
To determine the causal relationship
between education expenditure and economic growth.
The following research questions are
generated to guide this study:
What is the efficiency of educational
expenditure on school enrollment in Nigeria?
is the rate of growth of school enrollment in Nigeria?
What is the causal relationship
between education expenditure and economic growth?
is no significant relationship between education expenditure and economic
is a significant relationship between education expenditure and economic
OF THE STUDY
importance of this study cannot be over emphasized as it concerns both the
public and the government in particular. It is meant to remind the government
that much have not been done to improve Nigeria’s education system, as the
sector deteriorates on a daily basis. This study is therefore coming as a
reminder that the government needs to pay rapt attention to the amount
allocated to the education sector, ensure the sector receives it and that the
fund is properly utilized.
addition, individuals on their part could assist the government in ensuring the
education sector is placed on the right pedestal.
study will be of immense benefit to other researchers who intend to know more
on this topic and can also be used by non-researchers to build more on their
work. This study contributes to knowledge and could serve as a guide for other
work or study.