DETERMINANTS OF PUBLIC HIGHER EDUCATION SPENDING IN NIGERIA: Implications for the Post-2015 Global Development Agenda

Abstract: This study examines the factors influencing public higher education spending in Nigeria with a view to deriving implications for the post2015 global development agenda. Most studies examine this issue with either the ordinary least squares or panel data analysis which does not reveal specific country characteristics. This study employed the GMM method of estimation with a set of instrumental variables (IV) estimators. The study revealed that both in the short run and steady state, per capita income, urbanization and the size of total population between 15 and 64 have positive effects and are significant in explaining public spending on education. However, unemployment and gross enrolment at the tertiary level, which is incorporated into the model to explain the effect of government funding of the tertiary sector, show a negative impact. The study recommends that policies aimed at enhancing education financing, particularly higher education, be implemented. This is necessary in view of the quest for Nigeria to become one of the 20 largest economies in the world by year 2020.

JEL Classification: I23, O18, O55
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