BusinessDay’s EDUSUM comes to town, set to stimulate education reform

Whilst the global economy is moving towards technology-enhanced education, big data analytics, Internet-of-Things (IoT), cryptocurrencies and driverless cars among others, Africa’s most populous nation’s education system struggles to keep pace with these rapid changes, a major source of concern and reason for BusinessDay’s Nov 28’s Education Summit in Lagos.

To stay competitive as a nation in the world today, Science, Technology, Engineering and Mathematics (STEM) are critical components, in addition to a robust Technical and Vocational Educational and Training (TVET) system. These elements are sorely missing in Nigeria, especially in public schools, which cater to over 70 per cent of school-age children. Government alone simply cannot lead the level of transformation needed to overhaul both the education and school systems.

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Yes, reality and experts are pointing to the need to craft sustainable public-private partnership models that is pragmatic in its approach to dealing with how Nigerians, young and old are equipped to face the digital economy through a form of education that is responsive to global market demands. When the government creates an enabling regulatory environment, private actors get creative in solving societal problems.

Africa’s largest economy in Gross Domestic Product (GDP) terms with over 182 million people is expected to hit 450 million people by 2050 to become a third most populous nation in the world, ahead of the United States of America, trailing behind China and India in a rapidly changing global context.

Of Nigeria’s over 182 million people, 49.79 per cent are between 0 – 14 years old and 15 – 24-year-old comprise 19.48 per cent, making Nigeria a very young population. A robust, relevant educational system is needed to transform this huge youth bulge into globally competitive human capital. The challenge is that a quest for the right educational model in alignment with market demands has been largely Quixoteous for Nigeria, borrowing a theme from Miguel de Cervantes’ classical novel, Don Quixote.

Now, Nigeria is not equipping its largely youthful population with the necessary skills that will enable them to create value in the global economic system, the latest Global Human Report by the World Economic Forum (WEF) has shown. Low human capacity means that this population will become a burden if not equipped with the right skills to compete globally, analysts warn.

READ ALSO: Nigerian parents turn to low-fee schools for children’s basic education

This means the largely youthful population, 44 per cent of whom are below 15 years, would be disadvantaged in an increasingly global world where competition for human capital is no longer restricted to national boundaries.

Figures on basic education from the United Nations Children Education Fund (UNICEF) show that 40 per cent of Nigerian children aged 6-11 do not attend any primary school, with the Northern region recording the lowest school attendance rate, particularly for girls. Clearly, a new model is needed to transform educational outcomes.

Investment opportunities

Yet, Nigeria’s education market bubbles with potential given its strong demographic dividend and current supply-side gaps but issues of security, infrastructure, and affordability are keeping investors away, a recent report stated.

According to the Business of Education in Africa, a report published by Caerus Capital, an investment and advisory firm focused on healthcare and education in emerging markets, Nigeria’s education sector has an investment gap valued between $3.85 billion and $6.1 billion.

Low-cost K-12 schools (kindergarten to senior secondary school) have an investment gap of $2.0 – $2.5 billion, mid-priced and premium K-12 schools have an investment gap of $0.5 – $0.6 billion and the gap in contact higher education is valued at $0.7 – $0.8 billion among others.

Nigeria’s school-age population is forecast to grow at 2.5 per cent annually to 84 million by 2021, and the country is home to 11.4 million out-of-school children.

Although the education market presents a significant demand-side opportunity going forward, political and economic stability, are essential to unlocking growth potential. Public-private partnerships would be needed to drive this.

“Currently, 21 per cent or one in five pupils are educated in the private sector. Private-sector education is growing faster than the public in sub-Saharan Africa and African governments will need to include the private sector in their thinking. Private education in Africa offers $16-$18 billion investment opportunity over the next five years” said David Ferreira, a partner at Caerus Capital. This means private capital is already driving Nigeria’s educational system.

STEPHEN ONYEKWELU