Analysis of 2014

Education Budget

This analysis takes a look at the 2014

Budgetary allocation to the Education

Sector. Allocations to the Departments and

Agencies are also reviewed in order to

identified the most funded Agency.

A comparative analysis is also carried on

this and past budgets with the view of

observing if there are effort to measure up

to some of UNESCO’s recommendations.

Government Budget to the Education Sector is

usually shared among the following:

Universities Polytechnics

Colleges of

Education

Government

Colleges

Technical

Schools

Main

Ministry of

Education

Agencies / Parastatals

Total 2014 National Budget:

N4,642,960,000,000

Total Allocation to Education:

N493,458,130,268

10.63% % Allocation

to Education:

Components of Allocation to Education:

RECURRENT

(NON-DEBT)

EXPENDITURE

CAPITAL

EXPENDITURE

STATUTORY

TRANSFERS

Universal

Basic

Education

(UBEC)

MINISTRY/

DEPARMENT/

AGENCY

STATUTORY = 70,470,000,000 RECURRENT = 373,452,095,037 CAPITAL = 49,536,035,231

TOTAL RECURRENT TOTAL CAPITAL TOTAL ALLOCATION

443,922,095,037 49,536,035,231 493,458,130,268

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.

United Nations Development

Programme recommendation

“Allocate 70% of Budget to

Capital Expenditure and 30%

to Recurrent Expenditure.”

UNDP

Recommends

TOTAL RECURRENT TOTAL CAPITAL TOTAL ALLOCATION

N443,922,095,037 N49,536,035,231 N493,458,130,268

89.96% 10.04%

About 90% of total allocation to Education would be spent on

Salaries, Pensions & Overheads while 10% goes to Infrastructure,

Educational services and Healthcare facilities.

Year Recurrent % Capital %

2004 77.02% 22.98%

2005 81.44% 18.56%

2006 81.71% 18.29%

2007 78.15% 21.85%

2008 80.91% 19.09%

2009 86.67% 13.33%

2010 71.38% 28.62%

2011 91.09% 8.91%

2012 88.25% 11.75%

2013 85.87% 14.13%

Year 2004, 2007 and

2010 allocated 22.98%,

21.85% and 23.62%

respectively to Capital

Expenditure

From the foregoing; more money are spent in servicing

Salaries, Pensions & Overheads, which implies there are

many Staff on the payroll of the Education Ministries. By

implication also, it means there should be enough Teachers

/ Educators in all arms of our Education systems – Basic,

Secondary and Tertiary.

However, this is not so! Nigeria is in dire need of Teachers.

10,500,000 of these School-age

Children are from

Nigeria

How Many Teachers Are Needed? Of the countries reported with Teacher shortage, 3 would need

to recruit more than 200,000 teachers in total by the year 2015.

In Nigeria, more than one-half of the demand (212,083) is

associated with the need to expand teaching workforces by

creating new posts.

Total UPE Teachers needed by 2015 in Nigeria is 786,161

Teachers needed in 2015: 786,161 Teacher in

Stock (2010):

574,078

Needed:

Total Recruitment

375,479

New Posts:

212,083

163,396

Replacement for

Attrition:

Most of our Universities have less than 10% of their

budgetS allocated to Capital Expenditure, except some of

the new Federal Universities, Kebbi, Gashua and Gusau

that have over 30% for Capital Expenditure.

Similarly, most Polytechnics allocated less than 10% to

Capital Expenditure.

The Federal Ministry Headquarters allocated 65.29% to

Capital Expenditure, Federal Government Girls College,

Tambuwal (75.7%), National Library of Nigeria (66.61%),

Federal Science Technical College, Dayi (56.58%) and

FSTC, Michika (50.79%).

National Education Research Development Council

(NERDC) allocated 25.71% to Capital Expenditure.

Joint Admissions Matriculation Board (JAMB) allocated

0.98% to Capital Expenditure.

Actionaid Country Director, Hussaini Abdu

"We are very worried that over 70% of

the budget is actually going for recurrent

expenditure and less than 30% on capital

expenditure. No country develops under

such provisions because what grows a

country or builds the economy is the

amount of investments you are making

on infrastructure and other structural

issues that you required to strengthen

your economy”.

How does this

2014 Education

Budget compare

with past years?

Year Recurrent Capital UBEC Total Total Budget %

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

2000 29,514,932,709 11,425,730,621 – 40,940,663,330 470,009,971,781 8.71

2001 38,983,776,900 24,800,000,000 – 63,783,776,900 894,214,805,186 7.13

2002 51,335,499,300 22,100,000,000 – 73,435,499,300 1,064,801,253,520 6.90

2003 61,726,621,039 13,981,206,481 – 75,707,827,520 976,254,543,375 7.75

2004 72,217,886,839 21,550,000,000 – 93,767,886,839 1,790,848,344,588 5.24

2005 92,594,737,799 27,440,790,000 27,800,000,000 147,835,527,799 1,799,938,243,138 8.21

2006 129,421,908,835 35,791,763,831 30,480,000,000 195,693,672,666 1,876,302,363,351 10.43

2007 137,478,261,081 48,293,513,848 35,300,000,000 221,071,774,929 2,266,394,423,477 9.75

2008 162,694,071,909 47,750,746,670 39,700,000,000 250,144,818,579 2,492,076,718,937 10.04

2009 183,014,340,686 33,625,096,425 35,565,376,384 252,204,813,495 2,870,510,042,679 8.79

2010 198,084,948,657 97,208,440,839 44,341,401,504 339,634,791,000 4,608,616,278,213 7.37

2011 304,392,631,774 35,088,896,911 54,328,643,090 393,810,171,775 4,226,191,559,259 9.32

2012 345,091,448,178 55,056,589,805 68,237,452,545 468,385,490,528 4,749,100,821,170 9.86

2013 360,822,928,272 71,937,785,489 76,279,000,000 509,039,713,761 4,987,220,425,601 10.21

2014 373,452,095,037 49,536,035,231 70,470,000,000 493,458,130,268 4,642,960,000,000 10.63

Education Allocation from 1999 to 2014

Observations: 2014 budget is lower than 2013, however due to the reduction

in total budget from N4.987tn to N4.642tn, 2014 Education

budget got 10.63% compared with 10.21% of 2013.

The percentage increase is almost negligible. At thus rate

Nigeria would be rated poorly and elongating the catch-up time

frame with rest of the world that are allocating over 20% of their

budget to Education.

Nigeria need to increase her budget by 2% yearly in order to

eventually allocate 20% by 2018 and 30% by 2023.

The Statutory allocation to UBEC dropped from 76.2Bn in 2013

to 70.5B in 2014.

Putting inflation into consideration, with a Deflator of 3.71 in

2014, the Real value of the 2014 Education budget is N133Bn

compare to N141Bn in 2013.

While more funds are required the issue of Governance need to

be address in order to avoid incessant strikes by academic

unions.

The Federal Government has decided

to inject N1.1tn into public universities

in the next 5years – N220Bn yearly

starting from 2014.

While this is commendable, the

University System is just one arm of the

entire Education System of Nigeria,

what is the extra funding plan for the

Polytechnics, Colleges of Education,

Technical Schools, Basic Education?

Summary of 2014 Budget Components

Recurrent Expenditure

75.68%

(Salaries,

Pensions &

Overhead

costs)

Capital Expenditure

(Infrastructure,

Educational

Services &

Health) Statutory Transfer

(UBEC)

10.04% 14.28%

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

Data source:

- Nigeria Budget office (www.budgetoffice.gov.ng)

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

e: walegate@yahoo.com

m: 08078001800

b: walemicaiah.blog.com

w. www.statisense.com