FINANCING HIGHER EDUCATION IN NIGERIA THE ROLE OF NIGERIAN EDUCATION BANK
FINANCING HIGHER EDUCATION IN NIGERIA THE ROLE OF NIGERIAN EDUCATION BANK
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Date
1999-09
Authors
VINCENT, Fulani
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Abstract
That higher education is faced with financial problems in Nigeria is no
news in recent years going by the frequent down tools in our institutions of higher
learning most of which have their roots on financial demands.
The financial problems of higher education in Nigeria is clearly
shown in chapter two of this work . It was observed that the amount approved for
and received by our higher institutions in most cases fall short of the amount
requested. For instance Ahmadu Bello University, Zaria, in 1981 - 1982 session
requested for the sum of N62.389 million, out of which N44,296 million was
approved by National Universities Commission (NUC) and the institution actually
received N41,532 million which was N20,857 million less than the amount
requested. It should be noted that most higher institutions in Nigeria depend on
grants from government. However we should not forget that such other sources as
tuition fees, donations and endowment funds, revenue yielding projects and, loans
(that are not easily come by) from lending agencies like commercial banks
because of their high conditionality are equally available though on a small scale.
The combinations of rapid expansion, macro-economic difficulties, and
commitments to student support have left government seeking means to relieve
budgetary pressures by ensuring student participation in the cost sharing without
deterring them from having access to higher education. In addition to the
budgetary rationale for mobilizing student contributions, recent economic analysis
have demonstrated efficiency and equity rationale for recovering at least part of
the cost of higher education from students.
In line with the above reasoning that the Nigerian
Education Bank was established via Decree 50 of 1993, by the Federal
Government of Nigeria to cater for higher education and indeed the entire
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educational sector of the economy. The bank (Nigerian Education Bank) has as its
clients students who can borrow money to finance their education needs,
publishers, researchers and consultants, conference and seminar organizers,
lecturers, higher institutions, associations such as old student association and allied
parastatals.
However it has been observed that though the whole idea of the bank is
sound and welcomed, the purpose for which it was established has not been very
much achieved because of lack of sufficient fund for the operation of the revolving
loan scheme and poor recovery drive.
In conclusion therefore, practicable recommendations among others were
made to include:
(1) A thorough investigation of the purpose and viability of projects to
be financed by the Bank should be made before approval is given.
(2) investigation and confirmation of the permanent home addresses of
successful loan applicants and their guarantors before the
disbursement of loan.
(3) Proper documentation of agreements reached between the bank and
its clients.
(4) Injection of more fund into the revolving loan scheme by the Federal
government.
Description
A Project Submitted to the Post-Graduate School of the
Ahmadu Bello University, Zaria, in Partial Fulfillment of the
Requirements for the Award of the Degree of Master of Business
Administration (MBA).
Department of Business Administration
Ahmadu Bello University
Zaria.
November, 1999.
Keywords
FINANCING,, HIGHER,, EDUCATION,, NIGERIA, ROLE,, NIGERIAN, EDUCATION,, BANK