DIVERSIFYING SOURCE OF FINANCE FOR NIGERIA'S FEDERAL UNIVERSITIES
(A CASE STUDY OF AHMADU BELLO UNIVERSITY, ZARIA)
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Department of Administration
ABSTRACT
PLEASE NOTE:
The problem of inadequate funding by the Federal Government is one which the Universities have been facing in recent years.
With t h e grim economic situation in the country and the rapid rise in the number of Federal Universities , it is now becoming clearer that the Federal Government may no longer be in a position to bear the financing of the se universities to full capacity.
The need has therefore a risen for our universities to explore possible ways of generating revenue internally,if they are to reduce their financial dependence on the federal government.
The financial crisis being faced by our universities is due largely to their over-dependence on the traditional source of funds particularly government subventions which have now beenon the decline.In order to solve their financial problem son a permanent basis, therefore, the universities must take steps aimed at diversifying their source of funds.
It is against this background that this research takes ABU as case study with a focus on the Main Campus and Institute of Administration programmes,funded by the Federal Government through the NUC.Based on the above Stated problem,therefore,
the objectives, justification, scope,research methodology related literature and limitations of the study were first
discussed.The study attempts to appraise the financing of university development and recurrent programmes by the FederalGovernment through the National Universities
The historical background of ABU, growth in student enrollment and staff disposition over the years, were also presented, A critical analysis of ABU financial operations/records in terms of expenditure (actual) vis-a vis t o t a l income for the past twelve years, was presented to expose the need for the university to diversify i t s source of finance.
The study also highlights the attempt by ABU to supplement government dwindling revenue by establishing the ABU Consultancy Service. Other ventures like the ABU Bookshop and ABU Press were also discussed.
Based on time series data (1973/74 - 1984/85) two s t a t i s t i cal models - The trend Analysis and Regression Analysis - were used
to project future ABU finances for the next five years (1 935/86 to 1989/90) thus:
(a) Total Recurrent Expenditure(b) Total Recurrent Income(c) Expenditure per Student(d) University Internal Revenue(e) Federal Government Recurrent Grants(f) Student Population
Finally, based on research findings,, some key recommendations were made on the ways and means of solving the perennial financial problems of the university. Suggestions wore made on the various means by which revenue could be generated to supplement Federal Government dwindling funds for the Nigerian universities in general and ABU in p a r t i c u l a r
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