1. Deregulation & Higher
Education in a Developing
Country
The Challenge of Funding &
Managing Private Universities in
Nigeria
By
Mojisola Ladipo, mni

2. 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

3. 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.

4. 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.

5. • From the 1860’s “local
merchants, and mainly
Sierra Leonean
immigrants in Lagos sent
their children overseas,
especially England to train
as professionals.

6. 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.

8. 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

10. •About 95% population is
between 15-64 years of
age.
•33.2 % youths between
15-34
•Literacy rate – 68%

11. •GDP real growth rate :
8.4%
•GDP per capita :
$2,500
•Population below poverty
line : 70%

12. 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

13. In 2007, 1.37 million
students were enrolled
in the nation’s
Universities,
Polytechnics and
Colleges of Education.

14. 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.

15. 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)

16. 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

17. Enrolment and Output in Nigerian Universities
(1962-2004)
Year Number of Enrolment Output
Universities
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

18. University Enrolment and output. 1962-
2004
800000
700000
600000
500000 No of Univ
400000 enrolment
300000
output
200000
100000
0
3
9
2
99 6
02 0
03 3
4
/6
/8
/9
/9
20 00
20 00
00
62
88
91
95
/2
/2
/2
19
19
19
19
19

19. By 2009, there were 95
Universities in Nigeria,
made up of 27 Federal
Universities, 34 State
Universities and 34
Private Universities.

20. 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.

21. -
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 UYO
UNIVERSITY OF MAIDUGURI
NNAMDI AZIKIWE…
BAYERO UNIVERSITY, KANO
USMAN DANFODIO…
FEDERAL UNIVERSITIES OF…
• Funding Pattern of Federal
NATIONAL OPEN UNIVERSITY
Series1

22. • 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.

23. Path to Deregulation
• Irregular University calendar
• Militant unionism
• Decaying infrastructure
• Brain drain
• Declining quality of education in the
universities called for new
initiatives.

24. In 1993, the Federal
Government passed a
legislation (the National
Minimum Standards and
Establishments of Institutions
Amendment Decree) allowing
Private Institutions of higher
learning.

25. 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

26. 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.

27. ADVANTAGES OF DEREGULATION
• Infusion of private capital
and initiative
• Competition among
players.
• Increase in public access to
services

28. Ownership of Nigerian Universities: 2010
27
36
104
41
Federal State Private Total

29. As at 2012, there are 118
Universities in Nigeria
comprising:
• 45 owned by entrepreneurs
and faith based organisations
• 36 Federal Government
• 37 State Governments

30. OWNERSHIP PATTERN OF UNIVERSITIES
NIGERIA
37
45
Private
Federal
State
36

31. Undergraduate population
in Nigeria rose from
300,618 in 1999 to
1,096,312 in 2006 and
over 2 million by 2011

32. 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

33. • 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

34. Challenges
•Management
•Quality
•Funding

35. 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

36. 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

37. 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

38. 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

39. 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

40. • ‘Poaching’ with incentives
• Strong Quality Assurance
and Peer review
Directorates
• Mentoring and Coaching
by Senior Academics

41. 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

42. Range of fees
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000 706,038
2,000,000 Series 2
1,000,000 Series 3
0

43. 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

44. 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

45. •Focussed and dedicated
cultivation of potential
donors
•Business strategies
applied to academic
decisions

46. • 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.

47. 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.