Deregulation & HigherEducation in a Developing Country The Challenge of Funding &Managing Private Universities in Nigeria By Mojisola 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 EducationThe aspirations of Nigeriansfor higher education for theproduction and developmentof human resources is olderthan the history of tertiaryeducation in Nigeria.
Its origin is rooted in theaspirations of Nigerians to beactive players in thedevelopment of commerce,health services, engineeringand administration, longbefore the Nigerian nationwas 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 thepractical need for qualifiedpersonnel in various fields ofendeavour and to grant themerchants a competitive edgein commerce and socialprestige for such families andthe 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 fromthe free basic educationprogrammes of the states and thecorresponding graduates of thesecondary schools, 15 newUniversities, 9 new Polytechnicsand 9 new Colleges of Educationwere established in 2006
In 2007, 1.37 millionstudents were enrolledin the nation’sUniversities,Polytechnics andColleges of Education.
It is estimated that about 1.8million new entrants from thenation’s educational institutionsenter the labour market eachyear, resulting inunemployment andunderemployment.
In spite of the highunemployment rate nowbesieging University graduatesin Nigeria, there is anunrelenting private or socialdemand for Universityeducation. - 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 Enrolment Output Universities1948 1 104 nil1962/63 5 3,600 Under 10001988/89 30 158,758 37,2861991/92 35 222,974 42,9081995/96 37 276,440 52,8231999/2000 38 398,556 65,1452002/2003 55 584,774 84,7442003/2004 56 684,747 91,015
By 2009, there were 95Universities in Nigeria,made up of 27 FederalUniversities, 34 StateUniversities and 34Private Universities.
As educational institutions atall levels increased innumbers and the enrolmentsin quantity, the quality andquantity of staffing, thecapacity to fund solely byGovernment and the qualityof output declined.
- 10,000,000,000 12,000,000,000 14,000,000,000 2,000,000,000 4,000,000,000 6,000,000,000 8,000,000,000 UNIVERSITY OF IBADAN UNIVERSITY OF LAGOS UNIVERSITY OF NIGERIA… AHMADU BELLO… OBAFEMI AWOLOWO… UNIVERSITY OF BENIN UNIVERSITY OF JOS UNIVERSITY OF CALABAR UNIVERSITY OF ILORIN UNIVERSITY OF ABUJA UNIVERSITY OF… UNIVERSITY OF… MICHAEL OKPARA… UNIVERSITY OF PORT-… Universities- 2011 ABUBAKAR TAFAWA… FEDERAL UNIVERSITY OF… FEDERAL UNIVERSITY OF… FEDERAL UNIVERSITY OF… FEDERAL UNIVERSITY OF… UNIVERSITY OF UYOUNIVERSITY OF MAIDUGURI NNAMDI AZIKIWE… BAYERO UNIVERSITY, KANO USMAN DANFODIO… FEDERAL UNIVERSITIES OF… • Funding Pattern of FederalNATIONAL OPEN UNIVERSITY 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 FederalGovernment passed alegislation (the NationalMinimum Standards andEstablishments of InstitutionsAmendment Decree) allowingPrivate Institutions of higherlearning.
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 Highereducation sector in Nigeria inreal terms is a liberalisation of themarket by removing the rules thatconstrain private participation butretaining overall regulation ofstandards and quality through theNational UniversitiesCommission.
ADVANTAGES OF DEREGULATION• Infusion of private capital and initiative• Competition among players.• Increase in public access to services
Ownership of Nigerian Universities: 2010 27 36 104 41 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 37 45 Private Federal State 36
Undergraduate populationin Nigeria rose from300,618 in 1999 to1,096,312 in 2006 andover 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
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 fees8,000,0007,000,0006,000,0005,000,0004,000,0003,000,000 706,0382,000,000 Series 21,000,000 Series 3 0
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.