Education Financing and Economic Development in Nigeria

Abstract

The study empirically investigated education financing and development over a period of 2001-2018 utilizing secondary data sourced from Central Bank of Nigeria Statistical Bulletin (CBN), World Development Index and World Bank Data Atlas. Descriptive statistics was carried out in the course of this study and other estimation techniques such as unit root test, Johansen Cointegration test, Error correction model and granger causality test. The study discovered that broad based grant, technical corporation grants, ETF Fund allocation, government budget on education, USAID disbursement to primary schools, USAID disbursement to secondary schools, USAID disbursement to Post-Secondary schools and education financing influence human development index insignificantly. It was also discovered that broad based grant, USAID disbursement to primary schools and USAID disbursement to secondary schools influence human development index negatively while technical corporation grants, ETF Fund allocation and USAID disbursement to Post-Secondary schools affect human development index positively but insignificant. The study recommended that Government should summon the political will to progressively achieve the 26 per cent of budgetary allocation to education sector for developing countries like Nigeria, as recommended by UNESCO. Again, Capital infrastructural, educational materials/facilities, capacity building and welfare package of teachers and lecturers should be a major focus to ensure the transfer of quality knowledge to the growing young generation that would translate into increased innovation, productivity and general wellbeing of the people.