StatiSense

2017 PROPOSED

EDUCATION BUDGET AND

THE LAST 2 YEARS

2017 NATIONAL AND EDUCATION BUDGET

Proposed 2017 Budget ALLOCATION (N) %

National Government 7.298tn

Ministry of Education 540.443bn 7.41

The Federal Ministry of Education

Proposed 2017 Budget is 7.41% of the

Federal Government’s Budget!

COMPONENTS OF 2017 EDUCATION BUDGET

COMPONENT ALLOCATION (N) %

Personnel 375,114,768,099 69

Overhead 22,894,847,051 4

RECURRENT 398,009,615,15091

STATUTORY TRANSFER (UBEC) ≈ 92,000,000,000

CAPITAL 50,433,487,464 9

TOTAL 540,443,102,615

STATUTORY

TRANSFER

(UBEC)

RECURRENT

EXPENDITURE

CAPITAL

EXPENDITURE

Recurrent Expenditure: Spending by the Ministries,

Departments and Agencies (MDA) of Government on

Salaries, Pensions & Overheads

Capital Expenditure is used to provide infrastructure such as roads, water

and power; fund educational services such as schools, colleges and

universities; and provide healthcare facilities and services among others.

Statutory Transfer: The Federal Government is required by law to make

certain mandatory expenditures annually in

N483,183,784,654

N23,520,000,000

N67,300,000,000

N392,363,784,654

LAST THREE YEARS’ EDUCATION BUDGET

2015 2016 2017

RECURRENT

STATUTORY

CAPITAL

TOTAL

N480,278,214,688

N35,433,487,466

N77,110,000,000

N367,734,727,222

RECURRENT

STATUTORY

CAPITAL

TOTAL

N540bn

N50,433,487,464

N92bn

N398,009,615,150

RECURRENT

STATUTORY

CAPITAL

TOTAL

EDUCATION BUDGETS – 3 YEARS ON

Component 2015 2016 2017

Recurrent 392,363,784,654 367,734,727,222 398,009,615,150

Statutory

Transfer67,300,000,000 77,110,000,000 92bn

Capital 23,520,000,000 35,433,487,466 50,433,487,464

Total Budget 483,183,784,654 480,278,214,688 540bn

National

Budget4,493,363,957,158 6,060,677,358,227 7.298tn

Education

%10.75 7.92 7.41

EDUCATION BUDGET: 10.75% IN 2015 NOW AT 7.41% IN 2017!

EDUCATION BUDGETS: RECURRENT

Component 2015 2016 2017

Recurrent 392,363,784,654 367,734,727,222 398,009,615,150

Total Budget 483,183,784,654 480,278,214,688 540bn

Personnel:N374.04bn

Overhead:N18.32bn

Personnel:N349.74bn

Overhead:18.00bn

Personnel:N375.11bn

Overhead:N22.89bn

2015 2016 2017

RECURRENT: 81% 77% 74%

PERSONNEL: 95.33% 95.11% 94.25%

OVERHEAD: 4.67% 4.89% 5.75%

WHILE PERSONNEL COST IS REDUCING BY

THE YEAR, OVERHEAD IS HOWEVER

INCREASING!

OVERHEAD COSTS

Travel & Transport - General

Utilities - General

Materials & Supplies - General

Maintenance Services - General

Training - General

Other Services - General

Consulting & Professional Services - General

Fuel & Lubricants - General

Financial Charges - General

Miscellaneous

PERSONNEL COSTS

Salaries and wages

Allowances

Social Contributions

Social Benefits

The Recurrent Expenditures did not consider UBEC Funds

EDUCATION BUDGETS: STATUTORY TRANSFER

Component 2015 2016 2017

Statutory Transfer 67,300,000,000 77,110,000,000 92bn

Total Budget 483,183,784,654 480,278,214,688 540bn

% 14% 16% 17%

The Compulsory, Free Universal Basic Education Act, 2004 mandates

the Federal Government to allocate 2% of its Consolidated Revenue

Fund (CRF) to the universal basic education programme. As long as

Government revenue continues to increase, the UBE fund will be

increasing.

However, with the condition for access requiring each State of the

Federation to provide a 50% matching fund, several States are not

accessing the grant. Based on the last report in August 2016, no State

has access the fund – which is N627m each! The effect of this is that

the increase in the number of Out-of-School in Nigeria.

Therefore, the law need to be amended to current reality and

ultimately make funds available for Children who are the ultimate

beneficiaries.

EDUCATION BUDGETS: CAPITAL

Component 2015 2016 2017

Capital 23,520,000,000 35,433,487,466 50,433,487,464

Total Budget 483,183,784,654 480,278,214,688 540bn

% 5% 7% 9%

Proposed Capital Expenditure for 2017 is 42% increase on that of 2016

while 2016 had a 50% increase from 2015. Even though there is

improvement in the allocation of 2017, the increase is a drop

compared to that of 2016.

It implies, just 9% of 2017 budget will be spent on projects. A detailed

analysis of this expenditure reveals that the Federal Ministry of

Education will be spending N13.71bn which is a massive increase of

over a 100% from 2016 capital allocation of N5.83bn.

This increase is as a result of the Ministry’s N5bn project:

PROVISION OF SECURITY INFRASTRUCTURE IN 104 COLLEGES : PERIMETER FENCING, SOLAR STREET LIGHTS, SOLAR POWERED MOTORIZED

BOREHOLE AND CCTV

STRUCTURE OFTHE MINISTRYOF EDUCATION

GROUPINGS OF THE MINISTRY OF EDUCATION

HEADQUARTERS

COMMISSIONS

UNITY SCHOOLS

COLLEGES OF EDUCATION

POLYTECHNICS

UNIVERSITIES

1

2

3

4

5

6

1

23

104

21

26

38

GROUPINGS OF THE MINISTRY OF EDUCATION

TYPE 2015 2016 2017

Headquarters 9,931,655,520 9,872,396,119 17,960,577,694

Commissions 103,718,363,782 111,325,424,273 133,911,120,920

Unity Schools 31,212,377,584 39,891,930,768 42,933,887,002

Colleges of Education 42,562,363,278 39,792,265,777 43,116,152,642

Polytechnics 65,653,603,152 63,385,469,484 68,403,449,894

Universities 229,839,096,373 216,000,728,277 234,117,914,379

Grand Total 482,917,459,689 480,268,214,698 540,443,102,531

TYPE 2015 2016 2017 ∆

Headquarters 2.06% 2.06% 3.32%

Commissions 21.48% 23.18% 24.78%

Unity Schools 6.46% 8.31% 7.94%

Colleges of Education 8.81% 8.29% 7.98%

Polytechnics 13.60% 13.20% 12.66%

Universities 47.59% 44.98% 43.32%

PERCENTAGE CONTRIBUTION OF EACH CATEGORY

HEADQUARTERS: RECURRENT & CAPITAL

YEAR ALLOCATION RECURRENT % CAPITAL %

2015 9,931,655,520 4,197,332,621 42.26 5,734,322,899 57.74

2016 9,872,396,119 4,041,848,324 40.94 5,830,547,796 59.06

2017 17,960,577,694 4,254,771,359 23.69 13,705,806,335 76.31

There is increasing allocation to Capital Projects by

the Federal Ministry of Education HQTRS, particularly

these in the 2017 proposed budget:

Provision of Security Infrastructure in 104 Colleges: Perimeter fencing, Solar street

lights, Solar powered motorized borehole and CCTV. (N5,000,000,000)

Servicing on-going 802 (Eight Hundred and Two) BEA scholars in donor countries

(Payment of supplementary allowance, medical, health insurance, warm

clothing, postgraduate allowance, passages in Russia, China, Cuba, Romania,

Turkey, Tunisia, Algeria, Morocco, Romania, Serbia, Hungary, Egypt and Ukraine

etc @N310 Per USD($). (N1,573,000,000)

Outstanding liability on exchange rate differential for 2015 & 2016 BEA ongoing

remittances To 12 BEA Countries. (N644,200,000)

Statutory Presidential Visitation Exercise into the affairs of Federal Tertiary

Institutions. (N534,521,000)

Payment of Nigeria's Statutory Annual Contribution To ISESCO. (N311,631,904)

COMMISSIONS: RECURRENT & CAPITAL

YEAR ALLOCATION RECURRENT % CAPITAL %

2015 103,718,363,782 94,190,771,456 90.81 9,527,592,326 9.19

2016 111,325,424,273 102,081,310,540 91.70 9,244,113,735 8.30

2017 133,911,120,920 120,696,010,286 90.13 13,215,110,631 9.87

Over 90% of allocations to Federal Ministry of

Education agencies go to Recurrent Expenditure.

UNITY SCHOOLS: RECURRENT & CAPITAL

YEAR ALLOCATION RECURRENT % CAPITAL %

2015 31,212,377,584 27,865,202,549 89.28 3,613,500,000 11.58

2016 39,891,930,768 26,187,880,607 65.65 13,704,050,160 34.35

2017 42,933,887,002 29,229,645,914 68.08 13,704,241,084 31.92

Improvement in allocation to Capital Expenditure

from 11.58% in 2015 to over 30% in 2017!

COLLEGES OF EDUCATION: RECURRENT & CAPITAL

YEAR ALLOCATION RECURRENT % CAPITAL %

2015 42,562,363,278 41,530,752,015 97.58 1,031,611,263 2.42

2016 39,792,265,777 38,866,573,106 97.67 925,692,671 2.33

2017 43,116,152,642 41,802,341,456 96.95 1,313,811,179 3.05

Poor investment in education infrastructure in Colleges

of Education, 97% of allocation goes to Recurrent!

POLYTECHNICS: RECURRENT & CAPITAL

YEAR ALLOCATION RECURRENT % CAPITAL %

2015 65,653,603,152 64,514,548,871 98.27 1,139,054,281 1.73

2016 63,385,469,484 61,349,453,080 96.79 2,036,016,404 3.21

2017 68,403,449,894 65,531,047,613 95.80 2,872,402,275 4.20

Marginal improvement in Capital Expenditure from

1.73% in 2015 to 4.20% in 2017!

UNIVERSITIES: RECURRENT & CAPITAL

YEAR ALLOCATION RECURRENT % CAPITAL %

2015 229,839,096,373 227,365,177,142 98.92 2,473,919,231 1.08

2016 216,000,728,277 212,307,661,579 98.29 3,693,066,702 1.71

2017 234,117,914,379 228,495,798,461 97.60 5,622,115,913 2.40

Notice the sameness in allocation!

PROJECT AMOUNT UNIVERSITY

CONSTRUCTION OF CYBER SECURITY SCIENCE DEPARTMENT 89,199,469 FEDERAL UNIVERSITY OF TECHNOLOGY, MINNA

COMPLETION OF TWIN LECTURE THEATERS AND STUDIOS 89,199,469 FEDERAL UNIVERSITY OF TECHNOLOGY, YOLA

PERIMETER FENCING OF THE UNIVERSITY CAMPUS 89,199,469MICHAEL OKPARA UNIVERSITY OF AGRICULTURE, UMUDIKE

COMPLETION OF FACULTY OF AGRICULTURE BUILDING FOR UNIVERSITY OF BENIN

89,199,469 UNIVERSITY OF BENIN

CONSTRUCTION OF ASPHALT OVERLAY OVER ROAD FROM THE MAIN CAMPUS TO THE COLLEGE OF HEALTH SCIENCE

89,199,469 UNIVERSITY OF ILORIN

DRAINAGE CONSTRUCTION 89,199,469 UNIVERSITY OF MAIDUGURI

CONSTRUCTION OF THE PROPOSED FACULTY OF AGRICULTURE BLOCK (PHASE I) AT THE MAIN CAMPUS

89,199,469 UNIVERSITY OF UYO

Federal Universities receive the poorest investment in

terms of Capital Expenditure. 98% of allocations go to

payment of Salaries and benefits.

Reference –

2015, 2016, 2017 Budgets, Budget Office of the Federation.

Analyst: Wale Micaiah

e: walegate@yahoo.com

m: 08078001800

w: www.statisense.com

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source – © Wale Micaiah