Deregulation & Higher Education in a Developing
CountryThe Challenge of Funding &
Managing Private Universities in Nigeria
ByMojisola Ladipo, mni
Outline• Historical Background to University
Education in Nigeria• The Country Nigeria : Profile• Deregulation: Pathway to the
Emergence of Private Universities in Nigeria
• The Challenges• The Future
Background to University Education
The aspirations of Nigerians for higher education for the production and development of human resources is older than the history of tertiary education in Nigeria.
Its origin is rooted in the aspirations of Nigerians to be active players in the development of commerce, health services, engineering and administration, long before the Nigerian nation was born.
•
From the 1860’s “local merchants, and mainly Sierra Leonean immigrants in Lagos sent their children overseas, especially England to train as professionals.
The intention was to fulfill the practical need for qualified personnel in various fields of endeavour and to grant the merchants a competitive edge in commerce and social prestige for such families and the individuals.
PROFILE OF NIGERIA• Located in West Africa, bordering
the Gulf of Guinea, Benin, Cameroon, Chad and Niger.
• Total Land Area – 923,768sq km• Oil-Rich, with 37.2billion cu.m
proven reserves• Population – over 150million
•About 95% population is between 15-64 years of age.
•33.2 % youths between 15-34
•Literacy rate – 68%
•GDP real growth rate : 8.4%
•GDP per capita : $2,500
•Population below poverty line : 70%
To cater for the new graduates from the free basic education programmes of the states and the corresponding graduates of the secondary schools, 15 new Universities, 9 new Polytechnics and 9 new Colleges of Education were established in 2006
In 2007, 1.37 million students were enrolled in the nation’s Universities, Polytechnics and Colleges of Education.
It is estimated that about 1.8 million new entrants from the nation’s educational institutions enter the labour market each year, resulting in unemployment and underemployment.
In spite of the high unemployment rate now besieging University graduates in Nigeria, there is an unrelenting private or social demand for University education.
- NISER (2004)
University Growth: 1930-2012
• 1930– Yaba Medical School established to grant Diplomas and certificates.
• 1934—Yaba Higher College established
• 1949---The University College, Ibadan established
Enrolment and Output in Nigerian Universities (1962-2004)
Year Number of Universities
Enrolment Output
1948 1 104 nil
1962/63 5 3,600 Under 1000
1988/89 30 158,758 37,286
1991/92 35 222,974 42,908
1995/96 37 276,440 52,823
1999/2000 38 398,556 65,145
2002/2003 55 584,774 84,744
2003/2004 56 684,747 91,015
University Enrolment and output. 1962-2004
0100000200000300000400000500000600000700000800000
1962
/63
1988
/89
1991
/92
1995
/96
1999
/200
0
2002
/200
3
2003
/200
4
No of Univ
enrolment
output
By 2009, there were 95 Universities in Nigeria, made up of 27 Federal Universities, 34 State Universities and 34 Private Universities.
As educational institutions at all levels increased in numbers and the enrolments in quantity, the quality and quantity of staffing, the capacity to fund solely by Government and the quality of output declined.
• Funding Pattern of Federal Universities- 2011
-
2,000,000,000
4,000,000,000
6,000,000,000
8,000,000,000
10,000,000,000
12,000,000,000
14,000,000,000
Series1
• The proliferation of Federal and State owned universities between 1975 and 1999 to meet increasing demand from the teeming youth population led to great increase in enrolment figures of students, which in turn led to diminished resource allocation.
Path to Deregulation• Irregular University calendar• Militant unionism • Decaying infrastructure• Brain drain • Declining quality of education in the
universities called for new initiatives.
In 1993, the Federal Government passed a legislation (the National Minimum Standards and Establishments of Institutions Amendment Decree) allowing Private Institutions of higher learning.
Deregulation• Removal of ‘bridging’ subsidy
from sale and supply• Allowance of ‘market forces’ to
determine price• Absence of price fixing, control of
supply and uniform pricing• Cessation or stoppage of
Government monopoly
The ‘deregulation’ of the Higher education sector in Nigeria in real terms is a liberalisation of the market by removing the rules that constrain private participation but retaining overall regulation of standards and quality through the National Universities Commission.
ADVANTAGES OF DEREGULATION• Infusion of private capital
and initiative• Competition among
players. • Increase in public access to
services
Ownership of Nigerian Universities: 2010
27
36
41
104
Federal State Private Total
As at 2012, there are 118 Universities in Nigeria comprising:
• 45 owned by entrepreneurs and faith based organisations
• 36 Federal Government• 37 State Governments
OWNERSHIP PATTERN OF UNIVERSITIES NIGERIA
45
36
37
PrivateFederalState
Undergraduate population in Nigeria rose from 300,618 in 1999 to 1,096,312 in 2006 and over 2 million by 2011
Positive trends• Increased Access by over 30%• Stable Academic calendar – No
Unions• Alternative choice for middle class
families• Relatively better environment
conducive to learning and teaching
• Small population, hence more focussed on rich learning and teaching experience
• Higher moral tone in the faith based Institutions due to emphasis on spirituality and moral counselling
• Healthy competition in the higher education sector
Challenges•Management•Quality•Funding
MANAGEMENT CHALLENGES
• Infancy Stage, hence no established tradition of Governance, Management and Administration
• Micro management by the proprietor (s)• Lack of respect for Governance structure• Conflict between Management and
Proprietors• Lack of Appellate body for conflict
resolution
Challenges of quality : Students
• Poor quality applicants• Challenges of academic performance• Pressure on maintenance of high
enrolment and low drop out rate for financial reasons
• Challenge of discipline vis-a-vis personal freedom
Coping strategy• Strong remedial teaching• Smaller classes / higher contact rate
through tutorials, make-up classes for slow students
• Emphasis on proactive measures against institutional cultures that alienate students or are detrimental to student performance
Challenge of Quality : Staff• Low standard of available
faculty• High rate of adjunct and Part
time Faculty• Low research capability/ output• Lack of job security
Coping strategy• Reliance on adjunct, visiting and
part time staff from neighbouring institutions
• Strong linkage with overseas partners/ faith institutions
• Development of ‘own’ core staff through retaining and training fresh graduates
• ‘Poaching’ with incentives • Strong Quality Assurance
and Peer review Directorates
• Mentoring and Coaching by Senior Academics
Funding• Private Universities are currently
considered very expensive due to high poverty level among the citizenry
• The congregation of faith based Universities can hardly afford to send their children to the schools established with their contributions
Range of fees
Crawford
Uni
Ben. Idah
osa
Igbinedion Uni
Veritas
Uni
Weste
rn Delta
Uni.Ghan
a
Marq
uette Uni.0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
706,038Series 2Series 3
Challenges of funding• High Cost Universities• Total Reliance of Fees and
Proprietors Grants• Inability to plan long term• High basic cost for
Infrastructure and no funding for research and Development
Coping Strategy• Conscious efforts at maintaining
high retention Rates• Strong links with overseas
partners and faith Institutions for gifts, endowments and grants
• Early establishment of Advancement Offices
•Focussed and dedicated cultivation of potential donors
•Business strategies applied to academic decisions
• Long Term Investment in Ventures
• Business partnering/ Stand alone to provide continuous flow of funds. E.g. Printing Press, Feeder Schools, Petrol Stations, Agricultural Ventures, Hotels and Resorts.
The Future• The advent of private incursion has
changed the Higher Education landscape
• Some Casualties definitely expected like all business ventures
• Over time, greater collaboration between Public and private Institutions envisaged.