Analysis of the proposed 2017 Budget and the last to years

1. StatiSense
2017 PROPOSED
EDUCATION BUDGET AND
THE LAST 2 YEARS

2. 2017 NATIONAL AND EDUCATION BUDGET
Proposed 2017 Budget ALLOCATION (N) %
National Government 7.298tn
Ministry of Education 540.443bn 7.41
The Federal Ministry of Education
Proposed 2017 Budget is 7.41% of the
Federal Government’s Budget!

3. COMPONENTS OF 2017 EDUCATION BUDGET
COMPONENT ALLOCATION (N) %
Personnel 375,114,768,099 69
Overhead 22,894,847,051 4
RECURRENT 398,009,615,150
91
STATUTORY TRANSFER (UBEC) ≈ 92,000,000,000
CAPITAL 50,433,487,464 9
TOTAL 540,443,102,615
STATUTORY
TRANSFER
(UBEC)
RECURRENT
EXPENDITURE
CAPITAL
EXPENDITURE
Recurrent Expenditure: Spending by the Ministries,
Departments and Agencies (MDA) of Government on
Salaries, Pensions & Overheads
Capital Expenditure is used to provide infrastructure such as roads, water
and power; fund educational services such as schools, colleges and
universities; and provide healthcare facilities and services among others.
Statutory Transfer: The Federal Government is required by law to make
certain mandatory expenditures annually in

4. N483,183,784,654
N23,520,000,000
N67,300,000,000
N392,363,784,654
LAST THREE YEARS’ EDUCATION BUDGET
2015 2016 2017
RECURRENT
STATUTORY
CAPITAL
TOTAL
N480,278,214,688
N35,433,487,466
N77,110,000,000
N367,734,727,222
RECURRENT
STATUTORY
CAPITAL
TOTAL
N540bn
N50,433,487,464
N92bn
N398,009,615,150
RECURRENT
STATUTORY
CAPITAL
TOTAL

5. EDUCATION BUDGETS – 3 YEARS ON
Component 2015 2016 2017
Recurrent 392,363,784,654 367,734,727,222 398,009,615,150
Statutory
Transfer
67,300,000,000 77,110,000,000 92bn
Capital 23,520,000,000 35,433,487,466 50,433,487,464
Total Budget 483,183,784,654 480,278,214,688 540bn
National
Budget
4,493,363,957,158 6,060,677,358,227 7.298tn
Education
%
10.75 7.92 7.41
EDUCATION BUDGET: 10.75% IN 2015 NOW AT 7.41% IN 2017!

6. EDUCATION BUDGETS: RECURRENT
Component 2015 2016 2017
Recurrent 392,363,784,654 367,734,727,222 398,009,615,150
Total Budget 483,183,784,654 480,278,214,688 540bn
Personnel:
N374.04bn
Overhead:
N18.32bn
Personnel:
N349.74bn
Overhead:
18.00bn
Personnel:
N375.11bn
Overhead:
N22.89bn
2015 2016 2017
RECURRENT: 81% 77% 74%
PERSONNEL: 95.33% 95.11% 94.25%
OVERHEAD: 4.67% 4.89% 5.75%
WHILE PERSONNEL COST IS REDUCING BY
THE YEAR, OVERHEAD IS HOWEVER
INCREASING!
OVERHEAD COSTS
Travel & Transport - General
Utilities - General
Materials & Supplies - General
Maintenance Services - General
Training - General
Other Services - General
Consulting & Professional Services - General
Fuel & Lubricants - General
Financial Charges - General
Miscellaneous
PERSONNEL COSTS
Salaries and wages
Allowances
Social Contributions
Social Benefits
The Recurrent Expenditures did not consider UBEC Funds

7. EDUCATION BUDGETS: STATUTORY TRANSFER
Component 2015 2016 2017
Statutory Transfer 67,300,000,000 77,110,000,000 92bn
Total Budget 483,183,784,654 480,278,214,688 540bn
% 14% 16% 17%
The Compulsory, Free Universal Basic Education Act, 2004 mandates
the Federal Government to allocate 2% of its Consolidated Revenue
Fund (CRF) to the universal basic education programme. As long as
Government revenue continues to increase, the UBE fund will be
increasing.
However, with the condition for access requiring each State of the
Federation to provide a 50% matching fund, several States are not
accessing the grant. Based on the last report in August 2016, no State
has access the fund – which is N627m each! The effect of this is that
the increase in the number of Out-of-School in Nigeria.
Therefore, the law need to be amended to current reality and
ultimately make funds available for Children who are the ultimate
beneficiaries.

8. EDUCATION BUDGETS: CAPITAL
Component 2015 2016 2017
Capital 23,520,000,000 35,433,487,466 50,433,487,464
Total Budget 483,183,784,654 480,278,214,688 540bn
% 5% 7% 9%
Proposed Capital Expenditure for 2017 is 42% increase on that of 2016
while 2016 had a 50% increase from 2015. Even though there is
improvement in the allocation of 2017, the increase is a drop
compared to that of 2016.
It implies, just 9% of 2017 budget will be spent on projects. A detailed
analysis of this expenditure reveals that the Federal Ministry of
Education will be spending N13.71bn which is a massive increase of
over a 100% from 2016 capital allocation of N5.83bn.
This increase is as a result of the Ministry’s N5bn project:
PROVISION OF SECURITY INFRASTRUCTURE IN 104 COLLEGES : PERIMETER
FENCING, SOLAR STREET LIGHTS, SOLAR POWERED MOTORIZED
BOREHOLE AND CCTV

9. STRUCTURE OF
THE MINISTRY
OF EDUCATION

10. GROUPINGS OF THE MINISTRY OF EDUCATION
HEADQUARTERS
COMMISSIONS
UNITY SCHOOLS
COLLEGES OF EDUCATION
POLYTECHNICS
UNIVERSITIES
1
2
3
4
5
6
1
23
104
21
26
38

11. GROUPINGS OF THE MINISTRY OF EDUCATION
TYPE 2015 2016 2017
Headquarters 9,931,655,520 9,872,396,119 17,960,577,694
Commissions 103,718,363,782 111,325,424,273 133,911,120,920
Unity Schools 31,212,377,584 39,891,930,768 42,933,887,002
Colleges of Education 42,562,363,278 39,792,265,777 43,116,152,642
Polytechnics 65,653,603,152 63,385,469,484 68,403,449,894
Universities 229,839,096,373 216,000,728,277 234,117,914,379
Grand Total 482,917,459,689 480,268,214,698 540,443,102,531
TYPE 2015 2016 2017 ∆
Headquarters 2.06% 2.06% 3.32%
Commissions 21.48% 23.18% 24.78%
Unity Schools 6.46% 8.31% 7.94%
Colleges of Education 8.81% 8.29% 7.98%
Polytechnics 13.60% 13.20% 12.66%
Universities 47.59% 44.98% 43.32%
PERCENTAGE CONTRIBUTION OF EACH CATEGORY

12. HEADQUARTERS: RECURRENT & CAPITAL
YEAR ALLOCATION RECURRENT % CAPITAL %
2015 9,931,655,520 4,197,332,621 42.26 5,734,322,899 57.74
2016 9,872,396,119 4,041,848,324 40.94 5,830,547,796 59.06
2017 17,960,577,694 4,254,771,359 23.69 13,705,806,335 76.31
There is increasing allocation to Capital Projects by
the Federal Ministry of Education HQTRS, particularly
these in the 2017 proposed budget:
 Provision of Security Infrastructure in 104 Colleges: Perimeter fencing, Solar street
lights, Solar powered motorized borehole and CCTV. (N5,000,000,000)
 Servicing on-going 802 (Eight Hundred and Two) BEA scholars in donor countries
(Payment of supplementary allowance, medical, health insurance, warm
clothing, postgraduate allowance, passages in Russia, China, Cuba, Romania,
Turkey, Tunisia, Algeria, Morocco, Romania, Serbia, Hungary, Egypt and Ukraine
etc @N310 Per USD($). (N1,573,000,000)
 Outstanding liability on exchange rate differential for 2015 & 2016 BEA ongoing
remittances To 12 BEA Countries. (N644,200,000)
 Statutory Presidential Visitation Exercise into the affairs of Federal Tertiary
Institutions. (N534,521,000)
 Payment of Nigeria's Statutory Annual Contribution To ISESCO. (N311,631,904)

13. COMMISSIONS: RECURRENT & CAPITAL
YEAR ALLOCATION RECURRENT % CAPITAL %
2015 103,718,363,782 94,190,771,456 90.81 9,527,592,326 9.19
2016 111,325,424,273 102,081,310,540 91.70 9,244,113,735 8.30
2017 133,911,120,920 120,696,010,286 90.13 13,215,110,631 9.87
Over 90% of allocations to Federal Ministry of
Education agencies go to Recurrent Expenditure.
UNITY SCHOOLS: RECURRENT & CAPITAL
YEAR ALLOCATION RECURRENT % CAPITAL %
2015 31,212,377,584 27,865,202,549 89.28 3,613,500,000 11.58
2016 39,891,930,768 26,187,880,607 65.65 13,704,050,160 34.35
2017 42,933,887,002 29,229,645,914 68.08 13,704,241,084 31.92
Improvement in allocation to Capital Expenditure
from 11.58% in 2015 to over 30% in 2017!

14. COLLEGES OF EDUCATION: RECURRENT & CAPITAL
YEAR ALLOCATION RECURRENT % CAPITAL %
2015 42,562,363,278 41,530,752,015 97.58 1,031,611,263 2.42
2016 39,792,265,777 38,866,573,106 97.67 925,692,671 2.33
2017 43,116,152,642 41,802,341,456 96.95 1,313,811,179 3.05
Poor investment in education infrastructure in Colleges
of Education, 97% of allocation goes to Recurrent!
POLYTECHNICS: RECURRENT & CAPITAL
YEAR ALLOCATION RECURRENT % CAPITAL %
2015 65,653,603,152 64,514,548,871 98.27 1,139,054,281 1.73
2016 63,385,469,484 61,349,453,080 96.79 2,036,016,404 3.21
2017 68,403,449,894 65,531,047,613 95.80 2,872,402,275 4.20
Marginal improvement in Capital Expenditure from
1.73% in 2015 to 4.20% in 2017!

15. UNIVERSITIES: RECURRENT & CAPITAL
YEAR ALLOCATION RECURRENT % CAPITAL %
2015 229,839,096,373 227,365,177,142 98.92 2,473,919,231 1.08
2016 216,000,728,277 212,307,661,579 98.29 3,693,066,702 1.71
2017 234,117,914,379 228,495,798,461 97.60 5,622,115,913 2.40
Notice the sameness in allocation!
PROJECT AMOUNT UNIVERSITY
CONSTRUCTION OF CYBER SECURITY SCIENCE DEPARTMENT 89,199,469 FEDERAL UNIVERSITY OF TECHNOLOGY, MINNA
COMPLETION OF TWIN LECTURE THEATERS AND STUDIOS 89,199,469 FEDERAL UNIVERSITY OF TECHNOLOGY, YOLA
PERIMETER FENCING OF THE UNIVERSITY CAMPUS 89,199,469
MICHAEL OKPARA UNIVERSITY OF AGRICULTURE,
UMUDIKE
COMPLETION OF FACULTY OF AGRICULTURE BUILDING FOR
UNIVERSITY OF BENIN
89,199,469 UNIVERSITY OF BENIN
CONSTRUCTION OF ASPHALT OVERLAY OVER ROAD FROM
THE MAIN CAMPUS TO THE COLLEGE OF HEALTH SCIENCE
89,199,469 UNIVERSITY OF ILORIN
DRAINAGE CONSTRUCTION 89,199,469 UNIVERSITY OF MAIDUGURI
CONSTRUCTION OF THE PROPOSED FACULTY OF
AGRICULTURE BLOCK (PHASE I) AT THE MAIN CAMPUS
89,199,469 UNIVERSITY OF UYO
Federal Universities receive the poorest investment in
terms of Capital Expenditure. 98% of allocations go to
payment of Salaries and benefits.

16. Reference –
2015, 2016, 2017 Budgets, Budget Office of the Federation.

17. Analyst: Wale Micaiah
e: walegate@yahoo.com
m: 08078001800
w: www.statisense.com
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source – © Wale Micaiah