Analysis of 2014
Education Budget
This analysis takes a look at the 2014
Budgetary allocation to the Education
Sector. Allocations to the Departments and
Agencies are also reviewed in order to
identified the most funded Agency.
A comparative analysis is also carried on
this and past budgets with the view of
observing if there are effort to measure up
to some of UNESCO’s recommendations.
Government Budget to the Education Sector is
usually shared among the following:
Universities Polytechnics
Colleges of
Education
Government
Colleges
Technical
Schools
Main
Ministry of
Education
Agencies / Parastatals
Total 2014 National Budget:
N4,642,960,000,000
Total Allocation to Education:
N493,458,130,268
10.63% % Allocation
to Education:
Components of Allocation to Education:
RECURRENT
(NON-DEBT)
EXPENDITURE
CAPITAL
EXPENDITURE
STATUTORY
TRANSFERS
Universal
Basic
Education
(UBEC)
MINISTRY/
DEPARMENT/
AGENCY
STATUTORY = 70,470,000,000 RECURRENT = 373,452,095,037 CAPITAL = 49,536,035,231
TOTAL RECURRENT TOTAL CAPITAL TOTAL ALLOCATION
443,922,095,037 49,536,035,231 493,458,130,268
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.
United Nations Development
Programme recommendation
“Allocate 70% of Budget to
Capital Expenditure and 30%
to Recurrent Expenditure.”
UNDP
Recommends
TOTAL RECURRENT TOTAL CAPITAL TOTAL ALLOCATION
N443,922,095,037 N49,536,035,231 N493,458,130,268
89.96% 10.04%
About 90% of total allocation to Education would be spent on
Salaries, Pensions & Overheads while 10% goes to Infrastructure,
Educational services and Healthcare facilities.
Year Recurrent % Capital %
2004 77.02% 22.98%
2005 81.44% 18.56%
2006 81.71% 18.29%
2007 78.15% 21.85%
2008 80.91% 19.09%
2009 86.67% 13.33%
2010 71.38% 28.62%
2011 91.09% 8.91%
2012 88.25% 11.75%
2013 85.87% 14.13%
Year 2004, 2007 and
2010 allocated 22.98%,
21.85% and 23.62%
respectively to Capital
Expenditure
From the foregoing; more money are spent in servicing
Salaries, Pensions & Overheads, which implies there are
many Staff on the payroll of the Education Ministries. By
implication also, it means there should be enough Teachers
/ Educators in all arms of our Education systems – Basic,
Secondary and Tertiary.
However, this is not so! Nigeria is in dire need of Teachers.
10,500,000 of these School-age
Children are from
Nigeria
How Many Teachers Are Needed? Of the countries reported with Teacher shortage, 3 would need
to recruit more than 200,000 teachers in total by the year 2015.
In Nigeria, more than one-half of the demand (212,083) is
associated with the need to expand teaching workforces by
creating new posts.
Total UPE Teachers needed by 2015 in Nigeria is 786,161
Teachers needed in 2015: 786,161 Teacher in
Stock (2010):
574,078
Needed:
Total Recruitment
375,479
New Posts:
212,083
163,396
Replacement for
Attrition:
Most of our Universities have less than 10% of their
budgetS allocated to Capital Expenditure, except some of
the new Federal Universities, Kebbi, Gashua and Gusau
that have over 30% for Capital Expenditure.
Similarly, most Polytechnics allocated less than 10% to
Capital Expenditure.
The Federal Ministry Headquarters allocated 65.29% to
Capital Expenditure, Federal Government Girls College,
Tambuwal (75.7%), National Library of Nigeria (66.61%),
Federal Science Technical College, Dayi (56.58%) and
FSTC, Michika (50.79%).
National Education Research Development Council
(NERDC) allocated 25.71% to Capital Expenditure.
Joint Admissions Matriculation Board (JAMB) allocated
0.98% to Capital Expenditure.
Actionaid Country Director, Hussaini Abdu
"We are very worried that over 70% of
the budget is actually going for recurrent
expenditure and less than 30% on capital
expenditure. No country develops under
such provisions because what grows a
country or builds the economy is the
amount of investments you are making
on infrastructure and other structural
issues that you required to strengthen
your economy”.
How does this
2014 Education
Budget compare
with past years?
Year Recurrent Capital UBEC Total Total Budget %
1999 2,700,000,000 – – 2,700,000,000 60,549,835,647 4.46
2000 29,514,932,709 11,425,730,621 – 40,940,663,330 470,009,971,781 8.71
2001 38,983,776,900 24,800,000,000 – 63,783,776,900 894,214,805,186 7.13
2002 51,335,499,300 22,100,000,000 – 73,435,499,300 1,064,801,253,520 6.90
2003 61,726,621,039 13,981,206,481 – 75,707,827,520 976,254,543,375 7.75
2004 72,217,886,839 21,550,000,000 – 93,767,886,839 1,790,848,344,588 5.24
2005 92,594,737,799 27,440,790,000 27,800,000,000 147,835,527,799 1,799,938,243,138 8.21
2006 129,421,908,835 35,791,763,831 30,480,000,000 195,693,672,666 1,876,302,363,351 10.43
2007 137,478,261,081 48,293,513,848 35,300,000,000 221,071,774,929 2,266,394,423,477 9.75
2008 162,694,071,909 47,750,746,670 39,700,000,000 250,144,818,579 2,492,076,718,937 10.04
2009 183,014,340,686 33,625,096,425 35,565,376,384 252,204,813,495 2,870,510,042,679 8.79
2010 198,084,948,657 97,208,440,839 44,341,401,504 339,634,791,000 4,608,616,278,213 7.37
2011 304,392,631,774 35,088,896,911 54,328,643,090 393,810,171,775 4,226,191,559,259 9.32
2012 345,091,448,178 55,056,589,805 68,237,452,545 468,385,490,528 4,749,100,821,170 9.86
2013 360,822,928,272 71,937,785,489 76,279,000,000 509,039,713,761 4,987,220,425,601 10.21
2014 373,452,095,037 49,536,035,231 70,470,000,000 493,458,130,268 4,642,960,000,000 10.63
Education Allocation from 1999 to 2014
Observations: 2014 budget is lower than 2013, however due to the reduction
in total budget from N4.987tn to N4.642tn, 2014 Education
budget got 10.63% compared with 10.21% of 2013.
The percentage increase is almost negligible. At thus rate
Nigeria would be rated poorly and elongating the catch-up time
frame with rest of the world that are allocating over 20% of their
budget to Education.
Nigeria need to increase her budget by 2% yearly in order to
eventually allocate 20% by 2018 and 30% by 2023.
The Statutory allocation to UBEC dropped from 76.2Bn in 2013
to 70.5B in 2014.
Putting inflation into consideration, with a Deflator of 3.71 in
2014, the Real value of the 2014 Education budget is N133Bn
compare to N141Bn in 2013.
While more funds are required the issue of Governance need to
be address in order to avoid incessant strikes by academic
unions.
The Federal Government has decided
to inject N1.1tn into public universities
in the next 5years – N220Bn yearly
starting from 2014.
While this is commendable, the
University System is just one arm of the
entire Education System of Nigeria,
what is the extra funding plan for the
Polytechnics, Colleges of Education,
Technical Schools, Basic Education?
Summary of 2014 Budget Components
Recurrent Expenditure
75.68%
(Salaries,
Pensions &
Overhead
costs)
Capital Expenditure
(Infrastructure,
Educational
Services &
Health) Statutory Transfer
(UBEC)
10.04% 14.28%
Freely share, freely use and freely acknowledge the source – © Wale Micaiah
Data source:
- Nigeria Budget office (www.budgetoffice.gov.ng)
Analysis by: Wale Micaiah (M.sc., CISM, CCNP-Sec, MCSA)
m: 08078001800
b: walemicaiah.blog.com
w. www.statisense.com