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Budgetary Allocation to the Education Sector

Budgetary allocation to education sector

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Budgetary allocation to Nigeria education sector and progress made to ensure minimum investment is achieved.

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Page 1: Budgetary allocation to education sector

Budgetary Allocation

to the Education

Sector

Page 2: Budgetary allocation to education sector

Agencies

& Capital

Projects

Components of

our Education

Systems

Page 3: Budgetary allocation to education sector

It is my personal belief that the Quality of Life of any Nation

cannot be expected to be more than the Quality of the

Education of her Citizenry and the intentional investment in

the Education System.

A quick look at the world today shows that ALL the developed

countries have massive and strong Educational institutions

while the under-developed are bedeviled with perennial lack

of the appreciation for the need to take Education serious.

Education has gone beyond Managing, developed countries

have pushed Education to the level of Governance;

developing frameworks, implementing and monitoring its

effectiveness, investing massively in the system, as well as

partnering with private institutions in areas of lesser influence.

Nigeria Education System and budgetary allocation is the

focus of this study, with the intention to extract some sense

from available data as relating Government budgeting.

Page 4: Budgetary allocation to education sector

To reveal the

budgeting trend

To determine the budget Priorities, Growth Rate and Annual Growth

Rate

To perform a Gap

Analysis and project on possible

budget value

To Propose possible synergy

among All arms of Govt.

The purpose of this Education budget analysis is four-fold:

1 2 3 4

Page 5: Budgetary allocation to education sector

According to the 1999 Constitution; Education is a right

which government pledge to do all that is possible in

ensuring the people receive the best.

Components of Nigeria Budget

Statutory

Transfer Debt Service

Recurrent

Expenditure

Capital

Expenditure

MDA Expenditure

Part A – Statutory Transfers

Part B – Debts Service

Part C – Recurrent Expenditure (non-debt)

Part D – Capital Expenditure

Of these components; Education is funded by Part A, C and D

Refer to the publication on Nigeria Budget & Its Components for deeper understanding of Nigeria Budget

Page 6: Budgetary allocation to education sector

Statutory

Transfer Debt Service

Recurrent

Expenditure

Capital

Expenditure

UBEC

The Universal Basic

Education Commission

Federal Ministry of Education

Salaries

Pensions

Overhead

Infrastructure

Educational

Services

Budgetary Allocation = UBEC + Recurrent + Capital

Page 7: Budgetary allocation to education sector

To reveal the budgeting trend for

Education Sector

1

Page 8: Budgetary allocation to education sector

Budgetary Allocation (1999 – 2013)

Year RECURRENT -

EDUCATION

CAPITAL -

EDUCATION UBEC 1999 2,700,000,000 – –

2000 29,514,932,709 11,425,730,621 –

2001 38,983,776,900 24,800,000,000 –

2002 51,335,499,300 22,100,000,000 –

2003 61,726,621,039 13,981,206,481 –

2004 72,217,886,839 21,550,000,000 –

2005 92,594,737,799 27,440,790,000 27,800,000,000

2006 129,421,908,835 35,791,763,831 30,480,000,000

2007 137,478,261,081 48,293,513,848 35,300,000,000

2008 162,694,071,909 47,750,746,670 39,700,000,000

2009 183,014,340,686 33,625,096,425 35,565,376,384

2010 198,084,948,657 97,208,440,839 44,341,401,504

2011 304,392,631,774 35,088,896,911 54,328,643,090

2012 345,091,448,178 55,056,589,805 68,237,452,545

2013 360,822,928,272 71,937,785,489 76,279,000,000

Bulk of Education budget comes from both Recurrent and Capital Expenditure,

however there is a Statutory allocation devoted to Basic Education since 2005.

Page 9: Budgetary allocation to education sector

Education: Total Budgetary Allocation (1999 – 2013) YEAR EDUCATION BUDGET TOTAL BUDGET % OF ALLOCATION

1999 2,700,000,000 60,549,835,647 4.46

2000 40,940,663,330 470,009,971,781 8.71

2001 63,783,776,900 894,214,805,186 7.13

2002 73,435,499,300 1,064,801,253,520 6.90

2003 75,707,827,520 976,254,543,375 7.75

2004 93,767,886,839 1,790,848,344,588 5.24

2005 147,835,527,799 1,799,938,243,138 8.21

2006 195,693,672,666 1,876,302,363,351 10.43

2007 221,071,774,929 2,266,394,423,477 9.75

2008 250,144,818,579 2,492,076,718,937 10.04

2009 252,204,813,495 2,870,510,042,679 8.79

2010 339,634,791,000 4,608,616,278,213 7.37

2011 393,810,171,775 4,226,191,559,259 9.32

2012 468,385,490,528 4,749,100,821,170 9.86

2013 509,039,713,761 4,987,220,425,601 10.21

3,128,156,428,420 35,133,029,629,922 8.28

This Allocation is referred to as the Nominal value (i.e. without the effect of

Inflation), the Real value is therefore computed using a Deflator for each year.

Page 10: Budgetary allocation to education sector

Normalizing Education

Budgetary Allocation Formula for Calculating

Real Value from Nominal Value

Real Value Nominal Value

Deflator

Budgetary Allocation for each is divided by the Deflator

for each year to get the Real Budgetary Allocation

Page 11: Budgetary allocation to education sector

Deflators from 1999 - 2013

Year 1999 2000 2001 2002 2003 2004

Deflator 0.74 1.00 0.96 1.15 1.28 1.55

Year 2005 2006 2007 2008 2009

Deflator 1.85 2.22 2.31 2.56 2.45

Year 2010 2011 2012 2013

Deflator 2.68 3.08 3.44 3.61

The Deflator for the base year is always 1.00. Year 2000 is

going to be the base year

Page 12: Budgetary allocation to education sector

YEAR EDUCATION TOTAL BUDGET % OF ALLOCATION

1999 3,648,648,649 81,824,102,226 4.46

2000 40,940,663,330 470,009,971,781 8.71

2001 66,441,434,271 931,473,755,402 7.13

2002 63,856,955,913 925,914,133,496 6.90

2003 59,146,740,250 762,698,862,012 7.75

2004 60,495,410,864 1,155,386,028,767 5.24

2005 79,911,096,108 972,939,590,885 8.21

2006 88,150,303,003 845,181,244,753 10.43

2007 95,702,067,069 981,123,127,046 9.75

2008 97,712,819,757 973,467,468,335 10.04

2009 102,940,740,202 1,171,636,752,114 8.79

2010 126,729,399,627 1,719,632,939,632 7.37

2011 127,860,445,381 1,372,140,116,643 9.32

2012 136,158,572,828 1,380,552,564,294 9.86

2013 141,008,230,959 1,381,501,502,937 10.21

1,290,703,528,210 15,125,482,160,320 8.28

Education: Real Total Budgetary Allocation (1999 – 2013)

The effective Budgetary Allocation to Education

having considered prevailing inflation.

Page 13: Budgetary allocation to education sector

Year Nominal

Budget

Nominal Total

Budget Deflator Real Budget

Real Total

Budget %

1999 2,700,000,000 60,549,835,647 0.74 3,648,648,649 81,824,102,226 4.46

2000 40,940,663,330 470,009,971,781 1 40,940,663,330 470,009,971,781 8.71

2001 63,783,776,900 894,214,805,186 0.96 66,441,434,271 931,473,755,402 7.13

2002 73,435,499,300 1,064,801,253,520 1.15 63,856,955,913 925,914,133,496 6.90

2003 75,707,827,520 976,254,543,375 1.28 59,146,740,250 762,698,862,012 7.75

2004 93,767,886,839 1,790,848,344,588 1.55 60,495,410,864 1,155,386,028,767 5.24

2005 147,835,527,799 1,799,938,243,138 1.85 79,911,096,108 972,939,590,885 8.21

2006 195,693,672,666 1,876,302,363,351 2.22 88,150,303,003 845,181,244,753 10.43

2007 221,071,774,929 2,266,394,423,477 2.31 95,702,067,069 981,123,127,046 9.75

2008 250,144,818,579 2,492,076,718,937 2.56 97,712,819,757 973,467,468,335 10.04

2009 252,204,813,495 2,870,510,042,679 2.45 102,940,740,202 1,171,636,752,114 8.79

2010 339,634,791,000 4,608,616,278,213 2.68 126,729,399,627 1,719,632,939,632 7.37

2011 393,810,171,775 4,226,191,559,259 3.08 127,860,445,381 1,372,140,116,643 9.32

2012 468,385,490,528 4,749,100,821,170 3.44 136,158,572,828 1,380,552,564,294 9.86

2013 509,039,713,761 4,987,220,425,601 3.61 141,008,230,959 1,381,501,502,937 10.21

3,128,156,428,420 35,133,029,629,922 1,290,703,528,210 15,125,482,160,320 8.28

Nominal vs Real Education Budget (1999 – 2013)

While 3.128 Trillion of 35.133 Trillion is total

allocation to Education since 1999; actually, 1.290

Trillion of 15.125 Trillion is the effective (real) value.

Page 14: Budgetary allocation to education sector

Findings Total budget since 1999 till date is 35.133

Trillion, with Education taking 3.128

Trillion.

This is 8.28% of the Total Budget.

The lowest allocation was in 1999 (4.46%)

while the highest was 2006 (10.43%).

Allocation to Education ranked highest

(No. 1) in 11 of the 15years (2000, 2003–

2005, 2006, 2007, 2009–2013). While it

ranked 2nd in 2008 & 2001, 3rd in 2002 and

6th in 1999.

Page 15: Budgetary allocation to education sector

Year Nominal Budget Change (Nominal) Real Budget Change (Real)

1999 2,700,000,000 - 3,648,648,649 -

2000 40,940,663,330 38,240,663,330 40,940,663,330 37,292,014,681

2001 63,783,776,900 22,843,113,570 66,441,434,271 25,500,770,941

2002 73,435,499,300 9,651,722,400 63,856,955,913 -2,584,478,358

2003 75,707,827,520 2,272,328,220 59,146,740,250 -4,710,215,663

2004 93,767,886,839 18,060,059,319 60,495,410,864 1,348,670,614

2005 147,835,527,799 54,067,640,960 79,911,096,108 19,415,685,244

2006 195,693,672,666 47,858,144,867 88,150,303,003 8,239,206,895

2007 221,071,774,929 25,378,102,263 95,702,067,069 7,551,764,066

2008 250,144,818,579 29,073,043,650 97,712,819,757 2,010,752,688

2009 252,204,813,495 2,059,994,916 102,940,740,202 5,227,920,445

2010 339,634,791,000 87,429,977,505 126,729,399,627 23,788,659,425

2011 393,810,171,775 54,175,380,775 127,860,445,381 1,131,045,754

2012 468,385,490,528 74,575,318,753 136,158,572,828 8,298,127,447

2013 509,039,713,761 40,654,223,233 141,008,230,959 4,849,658,131

The Real value for 2005 budget is N79.9 billion, compared to

N147.8 billion prior to the consideration of inflation. Even

though there was an increase of N54 billion in nominal terms,

the actual increase for the 2005 financial year was N19.4 billion.

Page 16: Budgetary allocation to education sector

To determine the budget Priorities, Growth Rate

and Annual Growth Rate

2

Page 17: Budgetary allocation to education sector

From the foregoing, it shows government has an

understanding of the importance of Education; though the

allocation may be insufficient, however Education seems to

be a priority to Government.

Budget Priority:

19

99

20

00

20

01

20

13

To determine the budget Growth Rate

and Annual Growth Rate

Formula for Growth Rate:

Real Growth rate % = (Year 2 – Year 1)

Year 1 x 100

Page 18: Budgetary allocation to education sector

The growth rate describes how much the size of an allocation changes

from one year to the next. It is expressed as a percentage of the original

allocation and is called the annual growth rate or year to year change.

Year Nominal Budget % Change Real Budget % Change

1999 2,700,000,000 3,648,648,649

2000 40,940,663,330 1416 40,940,663,330 1022

2001 63,783,776,900 56 66,441,434,271 62

2002 73,435,499,300 15 63,856,955,913 -4

2003 75,707,827,520 3 59,146,740,250 -7

2004 93,767,886,839 24 60,495,410,864 2

2005 147,835,527,799 58 79,911,096,108 32

2006 195,693,672,666 32 88,150,303,003 10

2007 221,071,774,929 13 95,702,067,069 9

2008 250,144,818,579 13 97,712,819,757 2

2009 252,204,813,495 1 102,940,740,202 5

2010 339,634,791,000 35 126,729,399,627 23

2011 393,810,171,775 16 127,860,445,381 1

2012 468,385,490,528 19 136,158,572,828 6

2013 509,039,713,761 9 141,008,230,959 4

122% 83%

The figure above indicates that, although the budget seems to have

increased in nominal terms, when considered in real terms, it transpires that

the budget has actually increased by lesser percentages. For instance, in

2011, an increase of 16% in Nominal term shows a 1% increase in Real term.

Page 19: Budgetary allocation to education sector

The Annual Growth Rate of Nigeria

Education Budget over a period

Year Real Budget % Change

1999 3,648,648,649

2000 40,940,663,330 1022

2001 66,441,434,271 62

2002 63,856,955,913 -4

2003 59,146,740,250 -7

2004 60,495,410,864 2

2005 79,911,096,108 32

2006 88,150,303,003 10

2007 95,702,067,069 9

2008 97,712,819,757 2

2009 102,940,740,202 5

2010 126,729,399,627 23

2011 127,860,445,381 1

2012 136,158,572,828 6

2013 141,008,230,959 4

1168

Annual average real growth

rate over the medium term:

1999 to 2013 = 14years

1168

14 = 83.42

Page 20: Budgetary allocation to education sector

To perform a Gap Analysis and project on possible budget value

3

Page 21: Budgetary allocation to education sector

What is the expected

Allocation to Education?

Is Financing Education the

Principal ingredient required for

effective impact?

UNESCO United Nations Educational, Scientific and Cultural Organization

Page 22: Budgetary allocation to education sector

The Dakar Framework recommended that at least 20% of the

national budget or 5% of the Gross Domestic Product (GDP)

should be spent on education.

In its 1996 report, “Learning: The Treasure Within” (Delors et al.),

UNESCO suggested that governments should invest at least 6% of

their Gross National Product (GNP) in education.

In 2002 Education for All set up the Fast Track Initiative which

recommended that governments should spend 20% of their

national budget on education.

The World Education Forum (26-28 April 2000, Dakar);

Governments should ensure that at least 7% of GDP is allocated to

education within five years and 9% within ten years.

Recommendations:

Dakar

Framework

for Action

Learning:

The Treasure

Within

Education

for All

World

Education

Forum

Page 23: Budgetary allocation to education sector

Dakar

Framework

for Action

Learning:

The Treasure

Within

Education

for All

World

Education

Forum

20% of the

National

Budget or

5% of GDP

20% of the

National

Budget

6% of GNP

at least 7%

of GDP

within 5yrs

& 9% within

10yrs

* Local currency

value not available

for Learning: The

Treasure Within

Page 24: Budgetary allocation to education sector

Nigeria GDP (1999 – 2012)

Year GDP (current US$) GDP (current LCU) GDP (constant LCU) GDP

growth

1999 34,776,040,200 3,211,150,000,000 6,459,597,656,968 1

2000 45,983,449,593 4,676,394,201,060 6,808,415,930,444 5

2001 47,999,667,360 5,339,063,000,000 7,019,476,824,288 3

2002 59,116,868,249 7,128,203,099,899 7,128,203,099,899 2

2003 67,655,840,077 8,742,646,645,944 7,862,408,019,189 10

2004 87,845,403,966 11,673,602,238,328 8,695,823,269,223 11

2005 112,248,324,227 14,735,323,930,652 9,165,397,725,761 5

2006 145,428,171,552 18,709,576,650,503 9,733,652,384,758 6

2007 165,920,723,491 20,874,172,355,695 10,361,456,232,085 6

2008 207,115,995,738 24,552,776,282,688 10,981,450,915,862 6

2009 168,587,267,756 25,102,937,791,717 11,745,735,527,291 7

2010 228,637,855,749 34,363,818,159,248 12,682,584,197,130 8

2011 243,985,812,280 37,754,437,788,000 13,615,453,796,968 7

2012 262,605,908,770 41,179,149,997,055 14,507,266,020,704 7

GDP is the sum of gross value added by all resident producers in the economy plus any product taxes and

minus any subsidies not included in the value of the products. It is calculated without making deductions

for depreciation of fabricated assets or for depletion and degradation of natural resources. Data are in

constant local currency. GDP (constant LCU) will be used for the calculation in subsequent pages.

Page 25: Budgetary allocation to education sector

Year National Budget

(NB)

Government

Allocation

%

Govt.

%

GDP

Dakar Recommendation

20% NB 5% GDP 1999 60,549,835,647 2,700,000,000 4.46 0.04 12,109,967,129 322,979,882,848

2000 470,009,971,781 40,940,663,330 8.71 0.60 94,001,994,356 340,420,796,522

2001 894,214,805,186 63,783,776,900 7.13 0.91 178,842,961,037 350,973,841,214

2002 1,064,801,253,520 73,435,499,300 6.90 1.03 212,960,250,704 356,410,154,995

2003 976,254,543,375 75,707,827,520 7.75 0.96 195,250,908,675 393,120,400,959

2004 1,790,848,344,588 93,767,886,839 5.24 1.08 358,169,668,918 434,791,163,461

2005 1,799,938,243,138 147,835,527,799 8.21 1.61 359,987,648,628 458,269,886,288

2006 1,876,302,363,351 195,693,672,666 10.43 2.01 375,260,472,670 486,682,619,238

2007 2,266,394,423,477 221,071,774,929 9.75 2.13 453,278,884,695 518,072,811,604

2008 2,492,076,718,937 250,144,818,579 10.04 2.28 498,415,343,787 549,072,545,793

2009 2,870,510,042,679 252,204,813,495 8.79 2.15 574,102,008,536 587,286,776,365

2010 4,608,616,278,213 339,634,791,000 7.37 2.68 921,723,255,643 634,129,209,857

2011 4,226,191,559,259 393,810,171,775 9.32 2.89 845,238,311,852 680,772,689,848

2012 4,749,100,821,170 468,385,490,528 9.86 3.23 949,820,164,234 725,363,301,035

2013 4,987,220,425,601 509,039,713,761 10.21 997,444,085,120 Not Yet Available

35,133,029,629,922 3,128,156,428,420 8.28 1.69 7,026,605,925,984 6,838,346,080,027

Recommendation Dakar Framework for Action

While recommendation for Education budget is 20% of National Budget, Nigeria is presently

allocating below half the recommendation. Our current allocation in 2013 is what should

have been the allocation in 2008, it is therefore empirically established that we are 5years

behind.

GDP: Education budget by GDP is recommended at 5% GDP; on the average, Nigeria is

allocating less than 2% of her GDP instead of 5%. Current allocation is what we should have

allocated in 2007. Clearly, this shows 6years lag in our allocation.

Page 26: Budgetary allocation to education sector

Year National Budget (NB) Government

Allocation % Govt.

%

GDP

Recommendation

20% NB

1999 60,549,835,647 2,700,000,000 4.46 0.04 12,109,967,129

2000 470,009,971,781 40,940,663,330 8.71 0.60 94,001,994,356

2001 894,214,805,186 63,783,776,900 7.13 0.91 178,842,961,037

2002 1,064,801,253,520 73,435,499,300 6.90 1.03 212,960,250,704

2003 976,254,543,375 75,707,827,520 7.75 0.96 195,250,908,675

2004 1,790,848,344,588 93,767,886,839 5.24 1.08 358,169,668,918

2005 1,799,938,243,138 147,835,527,799 8.21 1.61 359,987,648,628

2006 1,876,302,363,351 195,693,672,666 10.43 2.01 375,260,472,670

2007 2,266,394,423,477 221,071,774,929 9.75 2.13 453,278,884,695

2008 2,492,076,718,937 250,144,818,579 10.04 2.28 498,415,343,787

2009 2,870,510,042,679 252,204,813,495 8.79 2.15 574,102,008,536

2010 4,608,616,278,213 339,634,791,000 7.37 2.68 921,723,255,643

2011 4,226,191,559,259 393,810,171,775 9.32 2.89 845,238,311,852

2012 4,749,100,821,170 468,385,490,528 9.86 3.23 949,820,164,234

2013 4,987,220,425,601 509,039,713,761 10.21 997,444,085,120

35,133,029,629,922 3,128,156,428,420 8.28 1.69 7,026,605,925,984

Recommendation Education for All

Page 27: Budgetary allocation to education sector

Year National Budget

(NB)

Government

Allocation

%

Govt.

%

GDP

Dakar Recommendation

7% GDP 9% GDP

1999 60,549,835,647 2,700,000,000 4.46 0.04 452,171,835,988

2000 470,009,971,781 40,940,663,330 8.71 0.60 476,589,115,131

2001 894,214,805,186 63,783,776,900 7.13 0.91 491,363,377,700

2002 1,064,801,253,520 73,435,499,300 6.90 1.03 498,974,216,993

2003 976,254,543,375 75,707,827,520 7.75 0.96 550,368,561,343

2004 1,790,848,344,588 93,767,886,839 5.24 1.08 782,624,094,230

2005 1,799,938,243,138 147,835,527,799 8.21 1.61 824,885,795,318

2006 1,876,302,363,351 195,693,672,666 10.43 2.01 876,028,714,628

2007 2,266,394,423,477 221,071,774,929 9.75 2.13 932,531,060,888

2008 2,492,076,718,937 250,144,818,579 10.04 2.28 988,330,582,428

2009 2,870,510,042,679 252,204,813,495 8.79 2.15 1,057,116,197,456

2010 4,608,616,278,213 339,634,791,000 7.37 2.68 1,141,432,577,742

2011 4,226,191,559,259 393,810,171,775 9.32 2.89 1,225,390,841,727

2012 4,749,100,821,170 468,385,490,528 9.86 3.23 1,305,653,941,863

2013 4,987,220,425,601 509,039,713,761 10.21 Not Yet Available

35,133,029,629,922 3,128,156,428,420 8.28 1.69 11,603,460,913,436

Recommendation World Education Forum

The World Education Forum (26-28 April 2000, Dakar);

Governments should ensure that at least 7% of GDP is allocated to

education within five years and 9% within ten years

Page 28: Budgetary allocation to education sector

GAP Analysis

Recommended Allocated

Dakar

Framework

for Action

Learning:

The

Treasure

Within

Education

for All

World

Education

Forum

Dakar

Framework

for Action

Learning:

The

Treasure

Within

Education

for All

World

Education

Forum

Page 29: Budgetary allocation to education sector

Recommendations Recommended Allocated (AVG) Difference %

Dakar Framework

20% of the NB 468,440,395,066 208,543,761,895 259,896,633,171 44.52

5% of GDP 488,453,291,431 187,064,954,745 301,388,336,685 38.30

Education for All

20% of the NB 468,440,395,066 208,543,761,895 259,896,633,171 44.52

World Education Forum

7% of GDP within 5yrs 493,893,421,431 51,242,236,532 442,651,184,899 10.38

9% of GDP within 10yrs 1,014,888,200,698 262,522,020,419 752,366,180,279 25.87

Education Budget Gap Analysis

On the average, Nigeria budgets less than 50% (10%) of

the recommended 20% of National Budget to Education

A cumulative average of less than 2% of GDP budgeted

since 1999, this is less than 40% of the 5% of GDP

Page 30: Budgetary allocation to education sector

Catching Up Recommendation:

In order to catch up with the rest of

the world who are budgeting 20%,

Nigeria will need an increment of 2%

yearly, starting from 2014. If followed,

by 2023, Nigeria will be budgeting

30% of NB and would have caught

up doing 20% on cumulative average.

Similarly, a yearly minimum increment

of 0.25% of Nigeria GDP will put

Nigeria ahead of the recommended

5% by 2023. if this is maintained, by

2035, Nigeria would have achieved

8.50%.

Page 31: Budgetary allocation to education sector

The Medium Term Expenditure Framework (MTEF) is one of the documents

that provide the basis for annual budget planning. They consist of a

macroeconomic framework that indicates fiscal target and estimates revenues

& expenditure, including government financial obligation in the medium

term.

Funding Education from MTEF

Usually, the Presidency proposes an oil benchmark price while the National

Assembly (The Senate & The House of Representatives) agrees or debate on a

possible value. Sometimes, even the National Assembly debate within

themselves before agreeing with the Presidency. This year, in presentation to

the 2014 budget; the presidency proposed $74 per barrel, the Senate raised it

to $76.50 while the House of Representatives pegged it at $79.

Whatever value is agreed, this value is the basis for the Nigeria budget while

the difference between the oil Benchmark and the actual value is „kept‟ by

the Executive arm of government (Presidency) in the Excess Crude Account.

Education can be funded by devoting a percentage

of the difference between the agreed oil benchmark

price and the actual market price.

Page 32: Budgetary allocation to education sector

Funding Education from MTEF

Year Barrel/Day

2009 2,208,000

2010 2,455,000

2011 2,550,000

2012 2,520,000

2013 2,500,000

In 2013, Oil benchmark is $79 per barrel. Oil

price hovers around $110; assume an average

value of $100 per barrel, this means there is a

difference of $21 per barrel. Lets do the Math:

$21 per barrel x 2,500,000 = $52,500,000

$52,500,000 x 365 = $19,162,500,000

@N150/$ = N7.9Billion per day

@N150/$ = N2.9Trillion per day

% Additional Education Budget (N)

1 28,743,750,000

2 57,487,500,000

3 86,231,250,000

4 114,975,000,000

5 143,718,750,000

Devoting some percentage of this

excess to Education would go a

long a way to address the

funding issues with our Education

System.

Page 33: Budgetary allocation to education sector

To propose possible Synergy among All arms

of Government

4

Page 34: Budgetary allocation to education sector

Federal

State

Local

Page 35: Budgetary allocation to education sector

While allocation to Education is about 10%, over the years it has received

some attention from the government emerging most times as the Sector

with the most allocation. However, according to the former Minister of

Education, Oby Ezekwesili, funding is not our main problem.

Below is an excerpt from a live interview session on Channels Television.

Education is a System

A System works organically. If you don't

understand what create a dysfunction to a

System you will be addressing the symptoms

instead of the fundamentals.

Education falls within the concurrent list of

our constitution i.e. the FG, State

Government and Local Government have

the constitutional empowerment to embark

on programmes.

The Federal Ministry of Education is the policy formulation,

implementation, monitoring, regulation of some standard settings

and benchmarking for performance.

Page 36: Budgetary allocation to education sector

My Education mandate when I was Minister was one of the most difficult

assignment I carried out in government.

As Minister of Solid Minerals, the number of reforms that through diagnostics to

set the system on a credible path for performance was 107 reforms.

As Minister of Education we required 300 reforms....45% were carried out in

10months when I was there as a minister of Education. My effective year of work

as minister for the period of 10months was approximately 3years.

Education is the single most important instrument for ensuring social and

economic mobility of your citizens.

Nigeria was under funding Education

As at then, Education budget to GDP- SA:7.9%, Ghana:4.4%, Angola:4.2%,

Nigeria:0.79%

Worse than the funding issue was the misallocation of investment issues...we

therefore have a structural dysfunction of the sector. If you fund education in the

way that it is, it is like getting the fanciest cloth on someone who need to first

stand upright...even though you cloth the person in the best apparel, the person

will still not be standing right. First you need to change the structural

dysfunctionality before providing the fund. Otherwise you will have a well

funded dysfunctionality.

Therefore, investment in Education is important, but much more important is

correcting the current structural dysfunctionality.

Page 37: Budgetary allocation to education sector

Nigeria was under funding Education. Worse than the funding

issue was the misallocation of investment issues...we therefore

have a structural dysfunction of the sector. If you fund education

in the way that it is, it is like getting the fanciest cloth on someone

who need to first stand upright...even though you cloth the person

in the best apparel, the person will still not be standing right.

First, you need to change the structural dysfunctionality before

providing the fund. Otherwise you will have a well funded

dysfunctionality. Therefore, investment in Education is important,

but much more important is correcting the current structural

dysfunctionality.

Page 38: Budgetary allocation to education sector

Funding

Governance Governance is the foundation of a

successful Education System

Funding adds colour and glamour

to the Education System

Page 39: Budgetary allocation to education sector

Clearly, there are two aspects to Budgeting:

Budget Allocation

Budget Implementation

While the former is known, the later is unknown,

therefore this dysfunctionality exist such that we

cannot properly account and reconcile what was

allocated with what is implemented.

Therefore, irrespective of the amount allocated,

without a proper Education Governance, that sees

an end-to-end reconciliation of Allocation viz-a-viz

its Implementation, as rightly said, we might just be

enabling a disability/dysfunctionality by providing

more funding.

Page 40: Budgetary allocation to education sector

Education falls within the concurrent list of our constitution i.e. the

Federal Government, State Government and Local Government have the

constitutional empowerment to embark on programmes

Proposed Synergy

Federal State Local

Other likely Partners are:

International Organisations

Non-Governmental Organisation

Civil Society

Organized Religious bodies

Private Organisation – Corporate Social Responsibility

Alumni

Individuals – Donor, Philanthropist

Page 41: Budgetary allocation to education sector

FG – Ministry, Agency & Parastatals

SG – State Ministry, Agency

LG – Council

International donors

Scholarships

Old Boys / Girls

Alumni

Civil Society

CSR

Philanthropists

Page 42: Budgetary allocation to education sector

Ministry of

Education

24 Parastatals/Agencies

Minster of Education

& Minister of State

Governing

Board

Ministry of

Education

Parastatals/Agencies

36 Commissioners

of Education

Governing

Board

Ministry of

Education Councilors

Responsibility Focus Medium

Frameworks

Tertiary Education

Technical Education

Research Development

State Tertiary Education

Technical/Vocational

Secondary Education

Policy

Primary Education

Vocational Empowerment

Early Child-hood

After-School Centres

FG

SG

LG

Page 43: Budgetary allocation to education sector

In Closing:

Education is a collaborative effort.

There is too much expectation and concentration of Power at

the Centre.

The FG budget to Education is a part of the pie, what about

States and Local Governments?

Each (FG, SG & LG) should concentrate on their respective areas

for maximum effect.

Budget Implementation review & Lesson Learned sessions is as

important as Budget planning & Projection.

FG, SG & LG should have an Education plan with projected

Budget for at least 5years.

Investment in Education is important, but much more important

is Education Governance, Reforms and Framework

Development.

Tax exemption should be offered to Private organisations with

Education focused Corporate Social Responsibility (CSR).

Page 44: Budgetary allocation to education sector

Freely share, freely use and freely acknowledge the source – © Wale Micaiah

Data source: - Nigeria Budget office (www.budgetoffice.gov.ng)

- Channels TV, Interview of Oby Ezekwesili, October 2013

- Nigeria Budget and its Components – Wale Micaiah

- Understanding Govt. Priority through Budgeting – Wale Micaiah

- World Bank Data

- International Monetary Funds

Analysis by: Wale Micaiah (M.sc., CISM, CCNP-Sec, MCSA)

e: [email protected]

m: 08078001800

b: walemicaiah.blog.com

w. www.statisense.com