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.