Outsourcing as an Alternative for Higher Education Financing (HEF) in Nigeria: The Case of Adamawa State University Mubi, Gombe State University and Taraba State University, Nigeria

Abstract

Socio-political and economic issues relating to financing higher education is broadly deliberated and debated subject in many public mediums and academic gatherings in Nigeria, for over a decade to date. Altogether those deliberations and debates are grounded virtually on two basic principles of, financing adequacy and equitability. Inadequacy of education financing is blamed for the deterioration in the quality of education. Furthermore, inequitable resource allocation between federal and State universities in Nigeria forms part of the key issue in accomplishing efficiency of resource utilization which is missing in academic literatures addressing higher education financing in Nigeria. In the context of Nigeria, considering the practical experiences, especially in the operational mechanism of financing of Higher education, transparency and corruptions became a syndrome that ravishes the educational system. This study focuses on sources of higher education finance and the relative contribution of each source to educational development of the nation. At the same time, implications of the present financing mechanism on parity and efficiency of higher education if Outsourcing is introduced as an alternative source of funding in the subsector. This study examines the matters relating to Higher Education Financing at three levels; financial allocation, resources allocation and education output distribution. This study is exploratory cross sectional survey and collects both primary and secondary data from relevant literatures available. The study revealed that outsourcing is a means of Internally Generated Revenue (IGR) in higher institution and therefore serve as alternative means of financing higher education in broad and university education in particular. Therefore, this study recommends formal incorporation of outsourcing in financing of university education in Nigeria.

Global Perspectives on Financing Higher Education: A Comparative Analysis

“…Higher education systems globally employ a range of financing models, including public funding, private investment, tuition fees, and combinations thereof. Each model reflects the socio-economic and policy contexts of its region (Danjuma et al, 2018;Hu, 2023;Huang, 2018). The financing models significantly impact access to, quality of, and equity in higher education.…”

“…This case illustrates the impact of policy changes and economic factors on higher education financing (Huang, 2018). Moreover, research show the challenges of financing adequacy and equity in Nigeria, where traditional government funding has been insufficient, and discusses the potential of outsourcing as a means of internally generated revenue (Danjuma et al, 2018). Some studies also address the challenges faced by the South Korean higher education system, including low government expenditure on higher education and suggests policy changes for long-term financial support (Won et al, 2023).…”

“…In contrast, regions that incorporate significant private investments, such as the case in Nigeria, demonstrate potential for high-quality infrastructure and educational innovation (Danjuma et al, 2018). However, this model may create barriers to access for students from less affluent backgrounds.…”

“…Equity and Access: Heavy reliance on private funding can lead to inequities in access to higher education, particularly for students from lower-income backgrounds (Danjuma et al, 2018).…”

“…In regions like Nigeria, where private investments play a significant role, policies should aim to ensure equitable access to higher education. This includes implementing financial aid programs and scholarships to support students from diverse socio-economic backgrounds (Danjuma et al, 2018).…”