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Budgetary allocation to education sector

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Budgetary allocation to Nigeria education sector and progress made to ensure minimum investment is achieved.

Budgetary allocation to Nigeria education sector and progress made to ensure minimum investment is achieved.

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  • 1. Budgetary Allocation to the Education Sector
  • 2. Agencies & Capital Projects Components of our Education Systems
  • 3. It is my personal belief that the Quality of Life of any Nation cannot be expected to be more than the Quality of the Education of her Citizenry and the intentional investment in the Education System. A quick look at the world today shows that ALL the developed countries have massive and strong Educational institutions while the under-developed are bedeviled with perennial lack of the appreciation for the need to take Education serious. Education has gone beyond Managing, developed countries have pushed Education to the level of Governance; developing frameworks, implementing and monitoring its effectiveness, investing massively in the system, as well as partnering with private institutions in areas of lesser influence. Nigeria Education System and budgetary allocation is the focus of this study, with the intention to extract some sense from available data as relating Government budgeting.
  • 4. The purpose of this Education budget analysis is four-fold: 1 To reveal the budgeting trend 2 To determine the budget Priorities, Growth Rate and Annual Growth Rate 3 To perform a Gap Analysis and project on possible budget value 4 To Propose possible synergy among All arms of Govt.
  • 5. According to the 1999 Constitution; Education is a right which government pledge to do all that is possible in ensuring the people receive the best. Components of Nigeria Budget MDA Expenditure Statutory Transfer     Debt Service Recurrent Expenditure Capital Expenditure Part A – Statutory Transfers Part B – Debts Service Part C – Recurrent Expenditure (non-debt) Part D – Capital Expenditure Of these components; Education is funded by Part A, C and D Refer to the publication on Nigeria Budget & Its Components for deeper understanding of Nigeria Budget
  • 6. Statutory Transfer Debt Service UBEC The Universal Basic Education Commission Recurrent Expenditure Capital Expenditure Federal Ministry of Education Salaries Pensions Overhead Infrastructure Educational Services Budgetary Allocation = UBEC + Recurrent + Capital
  • 7. 1 To reveal the budgeting trend for Education Sector
  • 8. Budgetary Allocation (1999 – 2013) Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 RECURRENT EDUCATION 2,700,000,000 29,514,932,709 38,983,776,900 51,335,499,300 61,726,621,039 72,217,886,839 92,594,737,799 129,421,908,835 137,478,261,081 162,694,071,909 183,014,340,686 198,084,948,657 304,392,631,774 345,091,448,178 360,822,928,272 CAPITAL EDUCATION – 11,425,730,621 24,800,000,000 22,100,000,000 13,981,206,481 21,550,000,000 27,440,790,000 35,791,763,831 48,293,513,848 47,750,746,670 33,625,096,425 97,208,440,839 35,088,896,911 55,056,589,805 71,937,785,489 UBEC – – – – – – 27,800,000,000 30,480,000,000 35,300,000,000 39,700,000,000 35,565,376,384 44,341,401,504 54,328,643,090 68,237,452,545 76,279,000,000 Bulk of Education budget comes from both Recurrent and Capital Expenditure, however there is a Statutory allocation devoted to Basic Education since 2005.
  • 9. Education: Total Budgetary Allocation (1999 – 2013) YEAR 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 EDUCATION BUDGET 2,700,000,000 40,940,663,330 63,783,776,900 73,435,499,300 75,707,827,520 93,767,886,839 147,835,527,799 195,693,672,666 221,071,774,929 250,144,818,579 252,204,813,495 339,634,791,000 393,810,171,775 468,385,490,528 509,039,713,761 TOTAL BUDGET 60,549,835,647 470,009,971,781 894,214,805,186 1,064,801,253,520 976,254,543,375 1,790,848,344,588 1,799,938,243,138 1,876,302,363,351 2,266,394,423,477 2,492,076,718,937 2,870,510,042,679 4,608,616,278,213 4,226,191,559,259 4,749,100,821,170 4,987,220,425,601 % OF ALLOCATION 4.46 8.71 7.13 6.90 7.75 5.24 8.21 10.43 9.75 10.04 8.79 7.37 9.32 9.86 10.21 3,128,156,428,420 35,133,029,629,922 8.28 This Allocation is referred to as the Nominal value (i.e. without the effect of Inflation), the Real value is therefore computed using a Deflator for each year.
  • 10. Normalizing Education Budgetary Allocation Formula for Calculating Real Value from Nominal Value Real Value Nominal Value Deflator Budgetary Allocation for each is divided by the Deflator for each year to get the Real Budgetary Allocation
  • 11. Deflators from 1999 - 2013 Year 1999 Deflator 0.74 Year Deflator Year Deflator 2000 1.00 2005 1.85 2010 2.68 2001 0.96 2006 2.22 2002 1.15 2007 2.31 2011 3.08 2003 1.28 2008 2.56 2012 3.44 2004 1.55 2009 2.45 2013 3.61 The Deflator for the base year is always 1.00. Year 2000 is going to be the base year
  • 12. Education: Real Total Budgetary Allocation ( 1999 – 2013) YEAR 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 EDUCATION 3,648,648,649 40,940,663,330 66,441,434,271 63,856,955,913 59,146,740,250 60,495,410,864 79,911,096,108 88,150,303,003 95,702,067,069 97,712,819,757 102,940,740,202 126,729,399,627 127,860,445,381 136,158,572,828 141,008,230,959 TOTAL BUDGET 81,824,102,226 470,009,971,781 931,473,755,402 925,914,133,496 762,698,862,012 1,155,386,028,767 972,939,590,885 845,181,244,753 981,123,127,046 973,467,468,335 1,171,636,752,114 1,719,632,939,632 1,372,140,116,643 1,380,552,564,294 1,381,501,502,937 % OF ALLOCATION 4.46 8.71 7.13 6.90 7.75 5.24 8.21 10.43 9.75 10.04 8.79 7.37 9.32 9.86 10.21 1,290,703,528,210 15,125,482,160,320 8.28 The effective Budgetary Allocation to Education having considered prevailing inflation.
  • 13. Nominal vs Real Education Budget (1999 – 2013) Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Nominal Budget 2,700,000,000 40,940,663,330 63,783,776,900 73,435,499,300 75,707,827,520 93,767,886,839 147,835,527,799 195,693,672,666 221,071,774,929 250,144,818,579 252,204,813,495 339,634,791,000 393,810,171,775 468,385,490,528 509,039,713,761 3,128,156,428,420 Nominal Total Deflator Budget 60,549,835,647 470,009,971,781 894,214,805,186 1,064,801,253,520 976,254,543,375 1,790,848,344,588 1,799,938,243,138 1,876,302,363,351 2,266,394,423,477 2,492,076,718,937 2,870,510,042,679 4,608,616,278,213 4,226,191,559,259 4,749,100,821,170 4,987,220,425,601 35,133,029,629,922 0.74 1 0.96 1.15 1.28 1.55 1.85 2.22 2.31 2.56 2.45 2.68 3.08 3.44 3.61 Real Budget Real Total Budget 3,648,648,649 81,824,102,226 40,940,663,330 470,009,971,781 66,441,434,271 931,473,755,402 63,856,955,913 925,914,133,496 59,146,740,250 762,698,862,012 60,495,410,864 1,155,386,028,767 79,911,096,108 972,939,590,885 88,150,303,003 845,181,244,753 95,702,067,069 981,123,127,046 97,712,819,757 973,467,468,335 102,940,740,202 1,171,636,752,114 126,729,399,627 1,719,632,939,632 127,860,445,381 1,372,140,116,643 136,158,572,828 1,380,552,564,294 141,008,230,959 1,381,501,502,937 1,290,703,528,210 15,125,482,160,320 % 4.46 8.71 7.13 6.90 7.75 5.24 8.21 10.43 9.75 10.04 8.79 7.37 9.32 9.86 10.21 8.28 While 3.128 Trillion of 35.133 Trillion is total allocation to Education since 1999; actually, 1.290 Trillion of 15.125 Trillion is the effective (real) value.
  • 14. Findings  Total budget since 1999 till date is 35.133 Trillion, with Education taking 3.128 Trillion.  This is 8.28% of the Total Budget.  The lowest allocation was in 1999 (4.46%) while the highest was 2006 (10.43%).  Allocation to Education ranked highest (No. 1) in 11 of the 15years (2000, 2003– 2005, 2006, 2007, 2009–2013). While it ranked 2nd in 2008 & 2001, 3rd in 2002 and 6th in 1999.
  • 15. The Real value for 2005 budget is N79.9 billion, compared to N147.8 billion prior to the consideration of inflation. Even though there was an increase of N54 billion in nominal terms, the actual increase for the 2005 financial year was N19.4 billion. Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Nominal Budget 2,700,000,000 40,940,663,330 63,783,776,900 73,435,499,300 75,707,827,520 93,767,886,839 147,835,527,799 195,693,672,666 221,071,774,929 250,144,818,579 252,204,813,495 339,634,791,000 393,810,171,775 468,385,490,528 509,039,713,761 Change (Nominal) 38,240,663,330 22,843,113,570 9,651,722,400 2,272,328,220 18,060,059,319 54,067,640,960 47,858,144,867 25,378,102,263 29,073,043,650 2,059,994,916 87,429,977,505 54,175,380,775 74,575,318,753 40,654,223,233 Real Budget 3,648,648,649 40,940,663,330 66,441,434,271 63,856,955,913 59,146,740,250 60,495,410,864 79,911,096,108 88,150,303,003 95,702,067,069 97,712,819,757 102,940,740,202 126,729,399,627 127,860,445,381 136,158,572,828 141,008,230,959 Change (Real) 37,292,014,681 25,500,770,941 -2,584,478,358 -4,710,215,663 1,348,670,614 19,415,685,244 8,239,206,895 7,551,764,066 2,010,752,688 5,227,920,445 23,788,659,425 1,131,045,754 8,298,127,447 4,849,658,131
  • 16. 2 To determine the budget Priorities, Growth Rate and Annual Growth Rate
  • 17. Budget Priority: From the foregoing, it shows government has an understanding of the importance of Education; though the allocation may be insufficient, however Education seems to be a priority to Government. 19 99 20 00 20 13 20 01 To determine the budget Growth Rate and Annual Growth Rate Formula for Growth Rate: Real Growth rate % = (Year 2 – Year 1) Year 1 x 100
  • 18. The growth rate describes how much the size of an allocation changes from one year to the next. It is expressed as a percentage of the original allocation and is called the annual growth rate or year to year change. Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Nominal Budget 2,700,000,000 40,940,663,330 63,783,776,900 73,435,499,300 75,707,827,520 93,767,886,839 147,835,527,799 195,693,672,666 221,071,774,929 250,144,818,579 252,204,813,495 339,634,791,000 393,810,171,775 468,385,490,528 509,039,713,761 % Change 1416 56 15 3 24 58 32 13 13 1 35 16 19 9 122% Real Budget 3,648,648,649 40,940,663,330 66,441,434,271 63,856,955,913 59,146,740,250 60,495,410,864 79,911,096,108 88,150,303,003 95,702,067,069 97,712,819,757 102,940,740,202 126,729,399,627 127,860,445,381 136,158,572,828 141,008,230,959 % Change 1022 62 -4 -7 2 32 10 9 2 5 23 1 6 4 83% The figure above indicates that, although the budget seems to have increased in nominal terms, when considered in real terms, it transpires that the budget has actually increased by lesser percentages. For instance, in 2011, an increase of 16% in Nominal term shows a 1% increase in Real term.
  • 19. The Annual Growth Rate of Nigeria Education Budget over a period Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Real Budget 3,648,648,649 40,940,663,330 66,441,434,271 63,856,955,913 59,146,740,250 60,495,410,864 79,911,096,108 88,150,303,003 95,702,067,069 97,712,819,757 102,940,740,202 126,729,399,627 127,860,445,381 136,158,572,828 141,008,230,959 % Change 1022 62 -4 -7 2 32 10 9 2 5 23 1 6 4 1168 Annual average real growth rate over the medium term: 1999 to 2013 = 14years 1168 = 83.42 14
  • 20. 3 To perform a Gap Analysis and project on possible budget value
  • 21. What is the expected Allocation to Education? UNESCO United Nations Educational, Scientific and Cultural Organization Is Financing Education the Principal ingredient required for effective impact?
  • 22. Recommendations:  The Dakar Framework recommended that at least 20% of the national budget or 5% of the Gross Domestic Product (GDP) should be spent on education.  In its 1996 report, “Learning: The Treasure Within” (Delors et al.), UNESCO suggested that governments should invest at least 6% of their Gross National Product (GNP) in education.  In 2002 Education for All set up the Fast Track Initiative which recommended that governments should spend 20% of their national budget on education.  The World Education Forum (26-28 April 2000, Dakar); Governments should ensure that at least 7% of GDP is allocated to education within five years and 9% within ten years. Dakar Framework for Action Learning: The Treasure Within Education for All World Education Forum
  • 23. Dakar Framework for Action Learning: The Treasure Within 20% of the National Budget or 5% of GDP 20% of the National Budget Education for All 6% of GNP at least 7% of GDP within 5yrs & 9% within 10yrs * Local currency value not available for Learning: The Treasure Within World Education Forum
  • 24. Nigeria GDP (1999 – 2012) Year GDP (current US$) 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 34,776,040,200 45,983,449,593 47,999,667,360 59,116,868,249 67,655,840,077 87,845,403,966 112,248,324,227 145,428,171,552 165,920,723,491 207,115,995,738 168,587,267,756 228,637,855,749 243,985,812,280 262,605,908,770 GDP (current LCU) GDP (constant LCU) 3,211,150,000,000 4,676,394,201,060 5,339,063,000,000 7,128,203,099,899 8,742,646,645,944 11,673,602,238,328 14,735,323,930,652 18,709,576,650,503 20,874,172,355,695 24,552,776,282,688 25,102,937,791,717 34,363,818,159,248 37,754,437,788,000 41,179,149,997,055 6,459,597,656,968 6,808,415,930,444 7,019,476,824,288 7,128,203,099,899 7,862,408,019,189 8,695,823,269,223 9,165,397,725,761 9,733,652,384,758 10,361,456,232,085 10,981,450,915,862 11,745,735,527,291 12,682,584,197,130 13,615,453,796,968 14,507,266,020,704 GDP growth 1 5 3 2 10 11 5 6 6 6 7 8 7 7 GDP is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources. Data are in constant local currency. GDP (constant LCU) will be used for the calculation in subsequent pages.
  • 25. Dakar Framework for Action Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 National Budget (NB) Government Allocation % Govt. % GDP 60,549,835,647 2,700,000,000 4.46 470,009,971,781 40,940,663,330 8.71 894,214,805,186 63,783,776,900 7.13 1,064,801,253,520 73,435,499,300 6.90 976,254,543,375 75,707,827,520 7.75 1,790,848,344,588 93,767,886,839 5.24 1,799,938,243,138 147,835,527,799 8.21 1,876,302,363,351 195,693,672,666 10.43 2,266,394,423,477 221,071,774,929 9.75 2,492,076,718,937 250,144,818,579 10.04 2,870,510,042,679 252,204,813,495 8.79 4,608,616,278,213 339,634,791,000 7.37 4,226,191,559,259 393,810,171,775 9.32 4,749,100,821,170 468,385,490,528 9.86 4,987,220,425,601 509,039,713,761 10.21 35,133,029,629,922 3,128,156,428,420 8.28 0.04 0.60 0.91 1.03 0.96 1.08 1.61 2.01 2.13 2.28 2.15 2.68 2.89 3.23 1.69 Recommendation Dakar Recommendation 20% NB 5% GDP 12,109,967,129 94,001,994,356 178,842,961,037 212,960,250,704 195,250,908,675 358,169,668,918 359,987,648,628 375,260,472,670 453,278,884,695 498,415,343,787 574,102,008,536 921,723,255,643 845,238,311,852 949,820,164,234 997,444,085,120 7,026,605,925,984 322,979,882,848 340,420,796,522 350,973,841,214 356,410,154,995 393,120,400,959 434,791,163,461 458,269,886,288 486,682,619,238 518,072,811,604 549,072,545,793 587,286,776,365 634,129,209,857 680,772,689,848 725,363,301,035 Not Yet Available 6,838,346,080,027 While recommendation for Education budget is 20% of National Budget, Nigeria is presently allocating below half the recommendation. Our current allocation in 2013 is what should have been the allocation in 2008, it is therefore empirically established that we are 5years behind. GDP: Education budget by GDP is recommended at 5% GDP; on the average, Nigeria is allocating less than 2% of her GDP instead of 5%. Current allocation is what we should have allocated in 2007. Clearly, this shows 6years lag in our allocation.
  • 26. Education for All Year National Budget (NB) Recommendation Government Allocation % Govt. % GDP Recommendation 20% NB 1999 60,549,835,647 2,700,000,000 4.46 0.04 12,109,967,129 2000 470,009,971,781 40,940,663,330 8.71 0.60 94,001,994,356 2001 894,214,805,186 63,783,776,900 7.13 0.91 178,842,961,037 2002 1,064,801,253,520 73,435,499,300 6.90 1.03 212,960,250,704 2003 976,254,543,375 75,707,827,520 7.75 0.96 195,250,908,675 2004 1,790,848,344,588 93,767,886,839 5.24 1.08 358,169,668,918 2005 1,799,938,243,138 147,835,527,799 8.21 1.61 359,987,648,628 2006 1,876,302,363,351 195,693,672,666 10.43 2.01 375,260,472,670 2007 2,266,394,423,477 221,071,774,929 9.75 2.13 453,278,884,695 2008 2,492,076,718,937 250,144,818,579 10.04 2.28 498,415,343,787 2009 2,870,510,042,679 252,204,813,495 8.79 2.15 574,102,008,536 2010 4,608,616,278,213 339,634,791,000 7.37 2.68 921,723,255,643 2011 4,226,191,559,259 393,810,171,775 9.32 2.89 845,238,311,852 2012 4,749,100,821,170 468,385,490,528 9.86 3.23 949,820,164,234 2013 4,987,220,425,601 509,039,713,761 10.21 35,133,029,629,922 3,128,156,428,420 8.28 997,444,085,120 1.69 7,026,605,925,984
  • 27. World Education Forum Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 National Budget (NB) Government Allocation 60,549,835,647 2,700,000,000 470,009,971,781 40,940,663,330 894,214,805,186 63,783,776,900 1,064,801,253,520 73,435,499,300 976,254,543,375 75,707,827,520 1,790,848,344,588 93,767,886,839 1,799,938,243,138 147,835,527,799 1,876,302,363,351 195,693,672,666 2,266,394,423,477 221,071,774,929 2,492,076,718,937 250,144,818,579 2,870,510,042,679 252,204,813,495 4,608,616,278,213 339,634,791,000 4,226,191,559,259 393,810,171,775 4,749,100,821,170 468,385,490,528 4,987,220,425,601 509,039,713,761 35,133,029,629,922 3,128,156,428,420 Recommendation % Govt. % GDP 4.46 8.71 7.13 6.90 7.75 5.24 8.21 10.43 9.75 10.04 8.79 7.37 9.32 9.86 10.21 8.28 0.04 0.60 0.91 1.03 0.96 1.08 1.61 2.01 2.13 2.28 2.15 2.68 2.89 3.23 1.69 Dakar Recommendation 7% GDP 9% GDP 452,171,835,988 476,589,115,131 491,363,377,700 498,974,216,993 550,368,561,343 782,624,094,230 824,885,795,318 876,028,714,628 932,531,060,888 988,330,582,428 1,057,116,197,456 1,141,432,577,742 1,225,390,841,727 1,305,653,941,863 Not Yet Available 11,603,460,913,436 The World Education Forum (26-28 April 2000, Dakar); Governments should ensure that at least 7% of GDP is allocated to education within five years and 9% within ten years
  • 28. GAP Analysis Dakar Framework for Action Learning: The Treasure Within Recommended Education for All World Education Forum Dakar Framework for Action Learning: The Treasure Within Allocated Education for All World Education Forum
  • 29. Education Budget Gap Analysis Recommendations Recommended Allocated (AVG) Difference % Dakar Framework 20% of the NB 468,440,395,066 208,543,761,895 259,896,633,171 44.52 5% of GDP 488,453,291,431 187,064,954,745 301,388,336,685 38.30 Education for All 20% of the NB 468,440,395,066 208,543,761,895 259,896,633,171 44.52 World Education Forum 7% of GDP within 5yrs 493,893,421,431 51,242,236,532 9% of GDP within 10yrs 1,014,888,200,698 262,522,020,419 442,651,184,899 10.38 752,366,180,279 25.87  On the average, Nigeria budgets less than 50% (10%) of the recommended 20% of National Budget to Education  A cumulative average of less than 2% of GDP budgeted since 1999, this is less than 40% of the 5% of GDP
  • 30. Catching Up Recommendation:  In order to catch up with the rest of the world who are budgeting 20%, Nigeria will need an increment of 2% yearly, starting from 2014. If followed, by 2023, Nigeria will be budgeting 30% of NB and would have caught up doing 20% on cumulative average.  Similarly, a yearly minimum increment of 0.25% of Nigeria GDP will put Nigeria ahead of the recommended 5% by 2023. if this is maintained, by 2035, Nigeria would have achieved 8.50%.
  • 31. Funding Education from MTEF The Medium Term Expenditure Framework (MTEF) is one of the documents that provide the basis for annual budget planning. They consist of a macroeconomic framework that indicates fiscal target and estimates revenues & expenditure, including government financial obligation in the medium term. Usually, the Presidency proposes an oil benchmark price while the National Assembly (The Senate & The House of Representatives) agrees or debate on a possible value. Sometimes, even the National Assembly debate within themselves before agreeing with the Presidency. This year, in presentation to the 2014 budget; the presidency proposed $74 per barrel, the Senate raised it to $76.50 while the House of Representatives pegged it at $79. Whatever value is agreed, this value is the basis for the Nigeria budget while the difference between the oil Benchmark and the actual value is „kept‟ by the Executive arm of government (Presidency) in the Excess Crude Account. Education can be funded by devoting a percentage of the difference between the agreed oil benchmark price and the actual market price.
  • 32. Funding Education from MTEF Year Barrel/Day 2009 2010 2011 2012 2013 2,208,000 2,455,000 2,550,000 2,520,000 2,500,000 In 2013, Oil benchmark is $79 per barrel. Oil price hovers around $110; assume an average value of $100 per barrel, this means there is a difference of $21 per barrel. Lets do the Math: $21 per barrel x 2,500,000 = $52,500,000 @N150/$ = N7.9Billion per day $52,500,000 x 365 = $19,162,500,000 @N150/$ = N2.9Trillion per day % Additional Education Budget (N) 1 28,743,750,000 2 57,487,500,000 3 86,231,250,000 4 114,975,000,000 5 143,718,750,000 Devoting some percentage of this excess to Education would go a long a way to address the funding issues with our Education System.
  • 33. 4 To propose possible Synergy among All arms of Government
  • 34. Local Federal State
  • 35. While allocation to Education is about 10%, over the years it has received some attention from the government emerging most times as the Sector with the most allocation. However, according to the former Minister of Education, Oby Ezekwesili, funding is not our main problem. Below is an excerpt from a live interview session on Channels Television.  Education is a System  A System works organically. If you don't understand what create a dysfunction to a System you will be addressing the symptoms instead of the fundamentals.  Education falls within the concurrent list of our constitution i.e. the FG, State Government and Local Government have the constitutional empowerment to embark on programmes.  The Federal Ministry of Education is the policy formulation, implementation, monitoring, regulation of some standard settings and benchmarking for performance.
  • 36.  My Education mandate when I was Minister was one of the most difficult assignment I carried out in government.  As Minister of Solid Minerals, the number of reforms that through diagnostics to set the system on a credible path for performance was 107 reforms.  As Minister of Education we required 300 reforms....45% were carried out in 10months when I was there as a minister of Education. My effective year of work as minister for the period of 10months was approximately 3years.  Education is the single most important instrument for ensuring social and economic mobility of your citizens.  Nigeria was under funding Education  As at then, Education budget to GDP- SA:7.9%, Ghana:4.4%, Angola:4.2%, Nigeria:0.79%  Worse than the funding issue was the misallocation of investment issues...we therefore have a structural dysfunction of the sector. If you fund education in the way that it is, it is like getting the fanciest cloth on someone who need to first stand upright...even though you cloth the person in the best apparel, the person will still not be standing right. First you need to change the structural dysfunctionality before providing the fund. Otherwise you will have a well funded dysfunctionality.  Therefore, investment in Education is important, but much more important is correcting the current structural dysfunctionality.
  • 37. Nigeria was under funding Education. Worse than the funding issue was the misallocation of investment issues...we therefore have a structural dysfunction of the sector. If you fund education in the way that it is, it is like getting the fanciest cloth on someone who need to first stand upright...even though you cloth the person in the best apparel, the person will still not be standing right. First, you need to change the structural dysfunctionality before providing the fund. Otherwise you will have a well funded dysfunctionality. Therefore, investment in Education is important, but much more important is correcting the current structural dysfunctionality.
  • 38. Funding Funding adds colour and glamour to the Education System Governance Governance is the foundation of a successful Education System
  • 39. Clearly, there are two aspects to Budgeting:  Budget Allocation  Budget Implementation While the former is known, the later is unknown, therefore this dysfunctionality exist such that we cannot properly account and reconcile what was allocated with what is implemented. Therefore, irrespective of the amount allocated, without a proper Education Governance, that sees an end-to-end reconciliation of Allocation viz-a-viz its Implementation, as rightly said, we might just be enabling a disability/dysfunctionality by providing more funding.
  • 40. Proposed Synergy Education falls within the concurrent list of our constitution i.e. the Federal Government, State Government and Local Government have the constitutional empowerment to embark on programmes Federal State Local Other likely Partners are:  International Organisations  Non-Governmental Organisation  Civil Society  Organized Religious bodies  Private Organisation – Corporate Social Responsibility  Alumni  Individuals – Donor, Philanthropist
  • 41. International donors Scholarships Old Boys / Girls Alumni Civil Society CSR Philanthropists LG – Council SG – State Ministry, Agency FG – Ministry, Agency & Parastatals
  • 42. Responsibility FG Medium Minster of Education & Minister of State Governing Board Governing Board LG Councilors Frameworks Tertiary Education Technical Education Research Development 24 Parastatals/Agencies 36 Commissioners of Education SG Ministry of Education Focus Ministry of Education State Tertiary Education Technical/Vocational Secondary Education Policy Parastatals/Agencies Ministry of Education Primary Education Vocational Empowerment Early Child-hood After-School Centres
  • 43. In Closing:  Education is a collaborative effort.  There is too much expectation and concentration of Power at the Centre.  The FG budget to Education is a part of the pie, what about States and Local Governments?  Each (FG, SG & LG) should concentrate on their respective areas for maximum effect.  Budget Implementation review & Lesson Learned sessions is as important as Budget planning & Projection.  FG, SG & LG should have an Education plan with projected Budget for at least 5years.  Investment in Education is important, but much more important is Education Governance, Reforms and Framework Development.  Tax exemption should be offered to Private organisations with Education focused Corporate Social Responsibility (CSR).
  • 44. Data source: - Nigeria Budget office (www.budgetoffice.gov.ng) Channels TV, Interview of Oby Ezekwesili, October 2013 Nigeria Budget and its Components – Wale Micaiah Understanding Govt. Priority through Budgeting – Wale Micaiah World Bank Data International Monetary Funds Analysis by: Wale Micaiah (M.sc., CISM, CCNP-Sec, MCSA) e: walegate@yahoo.com m: 08078001800 b: walemicaiah.blog.com w. www.statisense.com Freely share, freely use and freely acknowledge the source – © Wale Micaiah