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 (2016). The data were collected for a
period of twenty four years (i.e. 1990-2016). 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.
educational sector especially on the capital component to boost educational
growth in Nigeria.
BACKGROUND OF THE STUDY
is one of the important areas where governments in both developed and
developing economies direct its resources. The belief is that the result from
education expenditures will go a long way in transforming human, social,
economic, cultural and other aspects of the people’s lives. But however, the
paradox accompanying this belief is that, despite the huge investment in education, there exist
no strong evidence of growth – promoting externalities of education in Nigeria,
but rather, education expansion further deepens social inequalities and
inculcate negative social changes such as cultism, rent seeking, industrial
disputes, brain drain among other social vices in the Nigeria school system and
the society at large.
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 teacher’s
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 sources of funding education explored by the
government like the payment for Education Tax Fund (ETF)established in 1995,
Petroleum Trust Fund (PTF). Education Tax Fund ensures that companies with more
than 100 employees contributes 2 percent of their pre – tax earnings to the
fund. It is 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 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 wealth made
from the sales of oil into expenditures in various sectors including education.
to National Policy On Education (NPE) thereafter engendered indiscriminate
establishment of institution and increased student enrolments to mention a few.
According to Nwankwo (1992), enrolment in Nigeria 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
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 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.
OBJECTIVE OF THE STUDY
main objective of this research is to determine the effect of government
funding on educational growth in Nigeria. Other specific objectives are as
(i) To examine the extent to which government expenditure on education leads to
economic growth in Nigeria.
(ii) To identify the limitations and barriers to public expenditures to
educational growth in Nigeria.
(iii) To Proffer policy measures (recommendations) that will encourage
development in the educational sectors in Nigeria.
SIGNIFICANCE OF THE STUDY
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 information on various methods of adopting effective measures of
improving the education sector. It will serve as a reference point to the
policy makers to adequately plan education funding.
findings of this study will also provide an econometric basis upon which to
examine the effect of government funding on educational growth in Nigeria.
Hence, policy makers will be able to formulate an articulate and comprehensive
policy with respect to educational management in Nigeria. This research
will also provide an objective view to the relevance of education to Nigerian
economy. The findings of this research will also serve as good resource
materials for those that intend to make further research on the effect of
government funding on educational growth in Nigeria.
It will help students and researchers
to do further work related to this research project. More so, institutions of
learning that may come across this research work can see the need to enhance
funding of the education sector without solely depending on the government.
1.5 DELIMITATION OF THE STUDY
The study examines the effect of government funding on the growth of education
in Nigeria from 1990 – 2016.
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 includes the following:
- Does government
expenditure promote education growth in Nigeria?
- To what extent
has the barriers and limitation to educational growth been met?
- Has government
funding on educational sector led to the improvement of the standard of
education in Nigeria?
HYPOTHESIS OF THE STUDY
following hypotheses are formulated to guide the study:
is no significant relationship between Government expenditure and educational
growth in Nigeria.
H1: There is a significant relationship between Government expenditure and
educational growth in Nigeria.
is no significant effect on public expenditure in education and economic growth
H1: There is a significant effect on public expenditure in
education and economic growth in Nigeria.
large population and geographical area but was limited by shortage of time and
terms used in the discourse , philosophical discussions are avoided. The
following are the major terms used in the research with their various
is the countable or uncountable act of expanding or paying out or an expense.
the process of making world economy dominated by capitalist models.
the means to acquire goods and services, especially in a non-barter system.
all income generated for some political entity’s treasury by taxation and other
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