Impact of Education Sector Financing on the Welfare of Nigerians

Journal of Social Sciences, 2004

Government expenditure on education in Nigeria is categorized under the social and community services sector. The importance of education in national development cannot be overemphasized hence its cardinal position in various objectives of most developing countries. In Nigeria over the years, elements of uncertainty have beclouded this sector both in nominal and in real terms. Incessant strikes, closure of schools and other vices account for poor quality teaching and quality of products. The objective of this study is to examine the profile of educational expenditure in Nigeria (1977Nigeria ( -1998. An education expenditure model was constructed and tested using the ordinary least squares (OLS) technique. The estimates, though not overwhelmingly robust, it was discovered that federal government revenue is the singular significant determinant of educational expenditure model. It is the recommendation of this paper that other sources of financing education should be encouraged.

2014

Overtime, budgetary allocation to the education sector in Nigeria has been inadequate to meet the demands of the education sector. The objective of the paper is to evaluate the influence of government expenditure on the education sector in Nigeria. Hence, it is also intended to examine the effect of education expenditure on the level of literacy in Nigeria. Using a time series Linear forecasting model, this paper evaluates the effects of the allocation to the education sector by the government and its development. The use of co-integration in this work shows there is a long-run relationship between the variables and they are statistically significant. The Granger Causality test shows that the various variables granger causes literacy rate in Nigeria. It is imperative to note that if certain policy measures such as increased funding reduced corruption, teacher’s motivation and strategic planning among others are fully implemented, the sector will be appreciably developed. It is recom...

International journal of business, 2014

Received 06 October, 2014 Received in revised form 04 November, 2014 Accepted 19 November, 2014 Nigeria has over the years invested substantially to improve the educational attainment of the labour force and to raise productivity but yet still faces declining real output and slow economic growth. The paper focuses on the impact of education expenditure on economic growth as a means of achieving the desired socio-economic change needed in Nigeria. The study uses time series data from 1981 to 2012. The Johansen's co-integration analysis and ordinary least square (OLS) econometric techniques were used to analyze the relationship between gross domestic product (GDP) and recurrent education expenditure. Findings indicate that though a positive relationship subsists between education expenditure and economic growth, but a long run relationship does not exist over the period under study. The study observed that this puzzle is attributable to labour market distortions, redundancy of the...

Expenditure on education is regarded as investment in human capital because it helps in skill formation and thus raises the ability to work and produce more. Government education spending is of great importance to national development and plays a critical role in promoting growth and knowledge deepening. This paper examines government education spending and education outcome in Nigeria from 1970-2013. Employing Augmented Dickey Fuller (ADF) unit root test and Ordinary Least Square (OLS) technique, the study revealed that public education spending has a positive and significant effect on education outcome in Nigeria. Public health expenditure and urban population growth were also found to have positive effects on education outcome but are non significant in determining education outcome. The study recommends among other things, that government should spend more on education which needs to be targeted for the desired effects to be realized. Again government should monitor spending given the history of corruption and embezzlement of public funds in Nigeria.

2019

The study examined the relationship between government spending on education and national development in Nigeria using secondary data from the period 2001 to 2017. The study adopted gross domestic product as proxy for national development and the dependent variable; while government spending on education (representing Federal Government annual budgetary provision for the education sector) and inflation were used as the explanatory variables. Time series data for the study period was collected from the Federal Ministry of Finance, Office of the Accountant-General of the Federation and Central Bank of Nigeria (CBN) Official Gazette. The study employed descriptive statistics and multiple regression analysis based on the E-view 10 software as techniques of data analysis. The results provided evidence that government spending of education had significant positive effect on national development (at 5% level), while inflation had an insignificant effect on national development (at 13%). Ov...

2020

This study empirically probes the efficiency of education expenditure in Nigeria from 1990 to 2018. This study was specifically carried out to examine the impact of education expenditure on economic growth, human capital development and level of literacy rate in Nigeria. The study employed Augmented Dickey-Fuller (ADF) test, ARDL bounds cointegration test, and the short-run diagnostics and stability for ARDL model in the analysis. The research findings probe that education expenditure had significantly negative impact on economic growth in Nigeria. Also, education expenditure has significant positive impact on human capital development in Nigeria. Finally, education expenditure has positive but insignificant impact on literacy rate in Nigeria. Base on the findings, Government should constantly review an upward budgetary allocation to education sector in order to achieve a sustainable economic growth and reduced the level of literacy rate in Nigeria.

The Journal of Internet Banking and Commerce, 2017

This study examines investment in education for economic development of Nigeria. Education has been recognized globally as a veritable and strategic venture pivotal to economic transformation of any nation. The study made use of secondary data sourced from Ministry of Education, National Universities Commission (NUC) and Tertiary Education Trust Fund (TETFUND) and an Ordinary Least Square (OLS) regression method was used to analyze the data obtained to show the relationship between enrolments and funding. The result shows that the education sector contribute significantly to economic development as measured by the Gross Domestic Product although the sector is still underfunded most especially the basic and senior secondary levels in view of geometric increase in yearly enrollments and poor infrastructural facilities. The study recommends that the government at all levels should invest more in education and also collaborate with private sector through Private Public Partnership (PPP)...

International Journal of Accounting, Finance and Risk Management, 2020

This paper examined empirically the impact of government expenditure on the education sub-sector development in Nigeria for the period 1980 to 2017. Government expenditure was decomposed into capital and recurrent expenditures, while education sub-sector development was viewed from the perspectives of the States and Local Governments dependence (FDR), fiscal concentration (FCR), and per capita income (PCI). The data of the study were obtained from both the National Bureau of Statistics and the Central Bank of Nigeria Statistical Bulletins. The fully modified ordinary least squares (FMOLS) approach of the econometrics was used to estimate the findings/results of the paper. Some of the major findings of the paper indicated that all the variables became stationary after first differencing and that the series for all the equations were cointegrated thereby suggesting the existence of long run relationships among the variables. The short run dynamics results were robust and impressive given that each of the coefficients of determination (R-squared) and their adjusted counterparts were quite high. Furthermore, the results indicated that while capital expenditure exerted negative impact on the education sub-sector development, recurrent expenditure displayed a positive impact on the sub-sector. The paper therefore recommends that government, as a matter of frantic efforts and deliberate policies, scales up its capital expenditure on education sub-sector development as well as intensifying capacity building that would engender qualitatively improved education service delivery. This would only be possible if urgent institutional frameworks, procedures and governance styles that accord with international standards are urgently introduced and implemented.

Fuoye-JMIE, 2022

The study examines educational budget allocation and economic growth in Nigeria. Causalcomparative type of quantitative research design was used with the annual budget of education in Nigeria. The data were sourced through the secondary sources of data between the period 2011 to 2022 annual budget from the budget office online publication. The method of data analysis used was descriptive and regression statistics to measure the inference of the independent variables on economic growth. The unit root stationarity test and the Augmented Dickey-Fuller (ADF) statistics were adopted to measure the normality of the data. The findings revealed that the government capital expenditure with the coefficient and probability value of (r = 0.019; p = 0.440 > 0.05) has optimistic weight on economic growth in Nigeria; the government recurrent expenditure with the coefficient and probability value of (r = 2.860; p = 0.033 < 0.05) have low significant association with economic growth in Nigeria. It also revealed that human capital development with the coefficient and probability value of (r = 0.253; p = 0.025 < 0.05) has a weak significant correlation with the growth of the economy in Nigeria. The study, therefore, recommends that education finance stakeholders should encourage massive training and development through the public-private partnership (PPP) in the human capital sector of the national economy-education and increase the funding of capital projects. Recurrent expenditure on administration cannot be avoided by the government. However, all leakages arising from such expenditure should be plugged to boost growth in the economy.

International Journal of Information, Business and Managemen, 2019

This study examines the relationship between government spending on education and economic growth in Nigeria over the period of 1981 to 2016 using ordinary least square regression with heteroscedasticity consistent standard error. The Durbin Watson statistics indicate no problem of serial correlation. Separate regressions were performed for the aggregate and disaggregated expenditure to avoid the problem of multicollinearity. The results showed that education funding by the Nigeria government has a positive and significant impact on economic growth in Nigeria, and capital expenditure on education has a greater impact. The study recommended that the Nigeria government should ensure that it allocates a significant proportion of its budget to education, and while the United Nations sets the yardstick at 26% of the government budget for effective funding of education, a higher proportion of the Nigeria government budget is recommended to boost the effectiveness of the Nigeria economy through improved education.