• Wednesday, January 15, 2025
businessday logo

BusinessDay

Analysing the impact of low education budget allocations on future generations

Analysing the impact of low education budget allocations on future generations

Picture a young girl in a rural community, her dreams tethered by the limitations of an underfunded education system. With dilapidated classrooms and under-resourced teachers, her potential remains largely untapped. This scenario is not just a story; it is the reality for millions of Nigerian children who deserve better. In the grand tapestry of a nation’s future, the threads of education are woven with care and intention, shaping the very fabric of society’s existence. It is, undeniably, the cornerstone of economic growth and development.

 “Nigeria unveiled its 2025 appropriation bill in December 2024 with an allocation of N3.52 trillion to education—representing a worryingly 7.3 percent of the total budget.”

As Nigeria stands at the crossroads of opportunity and challenge in 2025, the budgetary allocation to education emerges as a critical focal point for national development. With a budgetary commitment that reflects both the aspirations and limitations of the nation, this investment in education is not merely a line item; it is a vital lifeline for future generations.

As in many other regions globally, education, in Nigeria, is a key instrument for promoting social equity and fostering economic advancement. Often hailed as the bedrock of societal progress, education plays an indispensable role in shaping the skills, values, and knowledge necessary for individuals to thrive in an increasingly complex world. So, it is not unexpected that attention will always focus on what proportion of the national appropriation provision is earmarked for education.

Nigeria unveiled its 2025 appropriation bill in December 2024 with an allocation of N3.52 trillion to education—representing a worryingly 7.3 percent of the total budget.

The provision stands as a poignant reminder of the priorities set for our youth. This allocation falls significantly short of UNESCO’s 1990 recommended benchmark of not less than 26 percent of the annual budget and 4-6 percent of the nation’s GDP, raising critical questions about our commitment to equipping future generations with the tools they need to thrive.

Key educational provisions in the 2025 Appropriation bill

Extant studies have revealed a positive association between increased educational expenditure and access. On 18 December 2024, President Bola Tinubu presented the 2025 budget proposal to the National Assembly, outlining a spending plan of N49.70 trillion titled “Budget of Restoration: Securing Peace, Rebuilding Prosperity.” Within this proposal, the Federal Government allocated N3.52 trillion to the education sector, which accounts for approximately 7.3 percent. This allocation encompasses personnel costs and funding for the Universal Basic Education Commission (UBEC), which alone received N738 billion, along with provisions for Federal Government Colleges and tertiary institutions.

Findings showed that the N3.52 trillion education budget is N1.34 trillion higher than the N2.18 trillion allocated to the sector in the 2024 appropriation, representing an increase of 61.47 percent. This allocation accounts for approximately 7.3 percent of the total budget of N49.70 trillion, which is an improvement from the 5.5 percent allocated in 2024. Despite being the highest education budget in Nigeria’s history, it still falls short of UNESCO’s recommendation that developing countries allocate between 15-20 percent of their national budgets to education. Stakeholders express concern that while the increase reflects a commitment to enhancing educational outcomes, it remains inadequate to address the pressing challenges faced by the sector, such as high dropout rates and a significant number of out-of-school children. The implication is that education has been grossly underfunded since the nation returned back to democracy in 1999, consistently failing to allocate more than 10 percent to the sector since UNESCO’s benchmark recommendation in 1990. Needless to say, the World Bank even recommended 20-30 percent of the government’s annual budget be allocated to the sector.

The 2025 budget reveals that the Federal Ministry of Education will oversee the new project “ERGP24225846 Support for Out-of-School Children,” with a N50 billion allocation. UNESCO reports that Nigeria has over 22 million out-of-school children, prompting Minister of Education Dr. Olatunji Alausa to emphasise addressing this issue through enhanced school enrolment, reducing education barriers, and promoting community involvement.

The budget also allocates N50 billion for online learning and Technical and Vocational Education and Training (TVET) programs, with N40 billion for TVET and N10 billion for online secondary school classes. Alausa announced a reform prioritising hands-on training in TVET, with 80 percent of the curriculum dedicated to practical learning.

Read also: Why Nigeria’s 7% education budget fails the test

Further scrutiny of the budget revealed N40 billion to enhance security, including perimeter fencing and addressing energy issues in 118 Federal Government Colleges. An additional N40 billion is earmarked for the rehabilitation of classrooms and hostels in Federal Unity Colleges (FUCs).

Vocational skill acquisition centres will receive N100 million for upskilling efforts, while N540 million is set aside for mobile science laboratory kits and toolboxes for FUCs and Federal Science and Technical Colleges (FSTCs). Laboratory upgrades and equipment for FUCs are budgeted at N500 million.

A stabilisation fund of N300 million each is provided to agencies removed from the federal budget, including the Teachers’ Registration Council of Nigeria (TRCN), the Liberian Registration Council of Nigeria (LRCN), and the Computer Registration Council of Nigeria (CPCRN).

The current budget reflects not just numbers but a profound responsibility—a call to action for policymakers and stakeholders alike to recognise that investing in education is investing in the nation’s future. As we navigate these challenging waters, let us remember that every naira spent on education today is a seed planted for tomorrow’s harvest, one that could yield innovation, economic growth, and social progress for generations to come.

Concluding remark

As Nigeria navigates its educational challenges, the allocation of resources will be crucial in determining whether these ambitious goals can be met and whether future generations will benefit from a robust educational framework that equips them for success. As we stand at a pivotal moment in shaping the future of education in Nigeria, it is imperative that all stakeholders—government, private sector, and civil society—come together in a unified call to action. The collective strength of our voices can advocate for increased funding and transformative change in our education system. Let us remember that investing in education is not merely a budgetary line item; it is an investment in our nation’s future, our children’s potential, and the prosperity of generations to come.

To achieve this vision, we must explore innovative funding models that harness the power of collaboration. Public-private partnerships can unlock resources and expertise from the private sector, driving efficiency and effectiveness in educational initiatives. Additionally, seeking international aid and support can provide the necessary financial boost to bridge gaps and enhance educational infrastructure.

Together, we can create a robust framework that not only addresses the immediate needs of our education sector but also lays the foundation for sustainable growth and development.

Nonetheless, the challenge of adequately financing education is substantial, especially in ensuring equitable access to quality educational opportunities for all individuals, irrespective of gender. The significance of education financing is profound. It guarantees that academic institutions are properly equipped, teachers are adequately trained and fairly compensated, and learning materials are contemporary and relevant. Additionally, sufficient financing supports the development of infrastructure capable of reaching underserved populations—a vital consideration in a country as diverse and populous as Nigeria.

Regrettably, reality often falls short of these ideals. Numerous regions, particularly those that are economically disadvantaged, grapple with underfunded educational systems. This underfunding leads to worn-down facilities, a deficiency of qualified teaching staff, and a lack of adequate educational materials, all of which hinder the educational prospects of the community members, notably affecting their future opportunities and perpetuating cycles of poverty and inequality.

As we delve into the implications of Nigeria’s education budget, it must be made clear that the choices made today will resonate far beyond the classroom, influencing economic growth, social cohesion, and the overall well-being of the nation for years to come.

Join BusinessDay whatsapp Channel, to stay up to date

Open In Whatsapp