Amid funding crisis, Tinubu establishing more tertiary institutions without sustainability plan

Amid the persistent funding shortfalls crippling Nigeria’s public tertiary institutions, President Bola Tinubu has continued to establish new ones without introducing a sustainable funding model.

Last year, many universities struggled to pay their electricity bills – at least three of them were temporarily disconnected from the electricity grid over failure to pay accrued bills.

In 2023, the Mr Tinubu-led federal government postponed the take-off of some federal universities approved by former President Muhammadu Buhari, citing funding concerns.

However, Mr Tinubu’s government has gone ahead to establish even more universities, polytechnics and colleges of education without providing an alternative source of funding.

The latest are the Federal University of Agriculture and Development Studies, Iragbiji, Osun State, and Federal University of Technology and Environmental Sciences, Iyin Ekiti, Ekiti State established on 20 February.

Earlier on 3 February, he had also approved the establishment of the Federal University of Environment and Technology (FUET) in the Ogoni town of Tai, Rivers State.

In a statement by his Special Adviser on Information and Strategy, Bayo Onanuga, the president said the institutions will serve as training grounds for developing agriculture, science and technology professionals and enhancing Nigeria’s competitiveness in the global economy.

“President Tinubu said these specialised institutions will address the educational needs of the populace while driving research and innovation and contributing to the country’s overall economic growth and development,” the statement reads in part.

12 institutions under two years

Since assuming office in May 2023, Mr Tinubu has established at least 12 tertiary institutions, including eight universities, two polytechnics and two colleges of education.

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They include the Federal University of Health Sciences and Technology in Tsafe, Zamfara State; Federal University of Sports, Afuze, Edo State; Federal University of Medical and Health Sciences, Kwale, Delta State; Federal University of Agriculture, Mubi, Adamawa State; Federal University in Southern Kaduna and Federal University of Environment and Technology (FUET) Tai, Rivers State.

Others are Federal University of Agriculture and Development Studies, Iragbiji, Osun State; Federal University of Technology and Environmental Sciences, Iyin Ekiti, Ekiti State; Federal Polytechnic Rano, Kano State; Bola Tinubu Polytechnic, Gwarimpa, FCT; Federal College of Education, Ilawe Ekiti, Ekiti State; and Federal College of Education, Ididep, Ibiono, Akwa Ibom State.

When he declined assent to the Federal University of Education, Numan (Establishment) Bill, last month, it was due to inconsistencies in the bill and not funding considerations.

Universities struggle to pay electricity bills

Meanwhile, the existing institutions are struggling to fund their operations and maintain existing facilities.

Last year, at least three universities were cut off from the electricity grid following their inability to pay for their accrued electricity bills.

In November, the Kaduna Electricity Distribution Company (KEDCO) cut-off the Ahmadu Bello University (ABU) from power supply as it failed to pay accrued bills. In a memo to staff and students, the university said it was making “frantic efforts” to pay the bills, explaining it had spent over N1 billion on electricity bills between January and October, excluding the amounts expended on diesel for power generators.

“This is even at the expense of the critical statutory functions of the University,” it said.
Earlier in August, the Eko Electricity Distribution Company (EKEDC) disconnected the University of Lagos (UNILAG) after it failed to pay the N472 million bills it owed. UNILAG said its electricity bill, which averaged between N150 million and N180 million monthly, increased to almost N300 million monthly after the EKDC migrated it from Band B to Band A in June.

In July, students at the University of Benin (UNIBEN) took to the street to protest days of blackout after the management of the institution failed to reach an agreement with the Benin Electricity Distribution Company (BEDC). The institution said it couldn’t pay the bill which rose by 200 per cent and couldn’t reach a favourable agreement with BEDC at the time.

At one point, the University of Ibadan (UI) announced that it would begin rationing electricity to only 10 hours a day, sparking protests by students. The university quickly denied the memo after the protest. However, the Deputy Vice-Chancellor (Administration), Peter Olapegba, explained that since the Ibadan

Electricity Distribution Company (IBEC) moved the institution from Band B to Band A, the monthly electricity bill has risen from around N80 million monthly to as high as N280 million.

Insufficient budgetary allocations

Though Ahmadu Bello University (ABU) said it spent about N1 billion on electricity bills between January and November 2024, the total overhead cost allocated to it in the proposed 2025 budget is N511 million, a PREMIUM TIMES review of the budget shows.

Overhead costs cover electricity bills, water and other expenses for the day to day running of the university.

Mr Tinubu proposed a N36.7 billion budget for ABU, out of which N34 billion is allocated for salaries and wages and N2.1 billion for capital projects.

A further review of the budget revealed that UNILAG has N510 allocated for overhead costs and N502 million for the University of Ibadan (UI).

Mr Tinubu proposed a total spending of N27.8 billion for UI out of which N2.1 billion was allocated for capital expenditures.

For UNILAG, the president proposed N24.5 billion out of which N2.1 billion was allocated for capital expenditure.

Increasing Fees

The Nigerian government maintains that Nigerian tertiary institutions remain tuition-free, with students paying only sundry charges for items like identity cards, lab coats etc.

However, to offset rising running costs, Nigerian universities have increased the sundry charges, most of them by more than 100 per cent, ignoring student protests.

PREMIUM TIMES reported how the fee increment that began in late 2022 continued till 2024 despite President Tinubu’s July 2023 directive to universities to avoid arbitrary increments in fees.

Funding challenges

The funding issues have also routinely led to disputes between the government and the workers in the institutions, especially the universities.

A significant part of the grievances of the workers’ unions of universities, polytechnics and colleges of education is the proliferation of federal and state tertiary institutions, despite the government’s inability to adequately fund existing ones.

The Academic Staff Union of Universities (ASUU) has accused the federal and state governments of turning the institutions into “constituency projects”, due to the rate of proliferation.

According to ASUU, the singular source of funds for training of staff and capital projects in the institutions has been the Tertiary Education Trust Fund (TETFund). The establishment of more institutions is straining the Fund’s resources, it said.

Beginning of the end of TETFund?

The union also recently warned against a section of the proposed tax reform bill that seeks to share revenue accruable to TETFund with other government agencies. TETFund currently receives a statutory allocation of three per cent of companies’ income tax received by the government.

However, the bill proposed a flat four per cent development levy to be shared between TETFund, National Information Technology Development Agency (NITDA), National Agency for Science and Engineering Infrastructure (NASENI), and the Nigerian Education Loan Fund (NELFUND).

The bill also seeks to phase out allocation for TETFund from 2030

But ASUU said it would reject moves to take away funding from the agency, which was first established in 1993 following the union’s persistent struggles with the government over funding for education.