POLICY FRAMEWORK FOR PRIVATE SECTOR COLLABORATION IN THE DEVELOPMENT AND MANAGEMENT OF NIGERIAN FEDERAL UNIVERSITIES

ABSTRACT

This study aimed at providing policy framework for private sector collaboration in the development and management of Nigerian federal universities.  Seven research questions and seven null hypotheses guided the study. The design employed for the study was descriptive survey. The population consisted of 26 federal universities and 241 companies quoted on the Nigerian Stock Exchange. The respondents consisted of all the principal Officers, Deans and targeted Directors of Academic Planning & Development, Physical Planning & Development and Information and Communication Technology in the 26 federal  universities  within  the  six  zones  of  the  Country  and  managers  of  the  241 companies on the Nigerian Stock Exchange. This yielded a total population of 1,741 respondents. The sample for the study was 46 consisting of 12 federal universities and 34 private companies. A sample of 412 respondents made up of 242 management staff from the universities and 170 managers from the private sector was used.   Questionnaire which was structured on a four point rating scale and oral interview were the main instruments for data collection. The questionnaire was validated by experts and the reliability, established by way of trial test, using CronbachApha Formula. Direct Delivery Technique (DDT) was adopted in administering the questionnaire and in conducting the oral interview. Real limits of numbers and criterion mean were used to answer the research questions while t-test was used to test the hypotheses. The principles for collaboration between universities and the private sector hinge on the fact that collaboration should be geared towards generating innovations for accelerating the Nigerian economic development and the fact that the symbiotic relationship which naturally exists between the two needs to be fostered by way of establishing virile link between them. Nigerian universities over-dependence on the federal government for funds with all the attendant infrastructural inadequacies for university development and management is one of the major  rationale  for  the  collaborative effort.  Benefits  that  will  accrue  as  a  result  of collaboration include the improvement in educational service delivery, infrastructural and physical development in universities and patent-ship of the private sector in research. Build-Operate-Transfer (BOT) and Build Transfer (BT) are the highly preferred modes of collaboration for  physical facilities. Constraints to collaboration include emphasis on profit making by the private sector, the long period required for recouping funds invested by the private sector and absence of enabling policies. Facilitating factors for effective collaboration include properly articulated memorandum of understanding between the collaborators .It was recommended amongst others, that the Federal Government should enforce collaborative activities between universities and the private sector so that the symbiotic relationship which naturally exist between the two will be enhanced. This could be achieved through the regulatory and supervisory activities of ministries and agencies such as the National Universities Commission [NUC].

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CHAPTER ONE

INTRODUCTION

Background of the Study

In an increasingly competitive world, education is the  most powerful instrument for developing and empowering the citizens to master their social and natural environments and to compete for survival. It is the principal instrument for generating and transmitting appropriate value system to all citizens. Essentially, education that results in science and technological transformation quickens the economic prosperity of a nation. The ability of a country to produce, select and use knowledge is very critical for sustaining economic growth and improved standard of living.

University education has been globally recognized as the level of education that stimulates national development through its contributions in human resource development. The  essence of human resource development according to Adamu (2003) is to ensure that workforce is continuously adapted for and upgraded to meet with the new challenges in its total environment. Nigerian universities have important role in supporting knowledge driven economic strategy and the construction of democratic and socially cohesive societies. They are the main source of highly skilled and qualified personnel essential for the industries to operate and compete effectively in the knowledge economy. The knowledge provided by the universities and their research results

are  capable of accelerating the  nation’s  economic development. Hence,  the

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recognition   of   knowledge   as   the   most   important   factor   for   economic development by World Bank (2002). Mohammed and Gbenu (2007) agree with this statement by stating that the development of higher education in the country is correlated with economic development.

University education during the pre and post independence era in Nigeria commanded high quality standards and competed with the best in the world. Foreign universities were then eager to form collaborative links with Nigerian universities.   Lecturers   and   Nigerian   students   had   no   problems   getting placements abroad for graduate studies. Okojie (2007) observes that if universities were ranked in those days, Nigerian universities would have been ranked among the first hundred in the world.

The  university system  has  witnessed  unprecedented  expansion  in  the country. From six universities in 1970, Nigeria had twenty five new universities within the space of fourteen years in 1984 and as at 2013; the number has increased to 123 universities. These include 36 federal universities, 37 state universities and 50 private universities (NUC, 2013). However, the increase in the number of universities in the country was not devoid of glaring overbearing impacts on the university education. Osagie (2001) observes that the resources of the Federal Government became over-stretched, resulting in inadequate funds for running the universities. Chukwuma and Nwaham (2007) submit that this was as a result of overdependence on the Federal Government for funding the universities. This  among  other  factors  led  to  the  emergence of  myriads  of

problems   presently   preventing   the   university   system   from   functioning effectively. Over  the  years,  Nigerian universities have  been  faced  with the challenges of ensuring commensurate standards and training as well as appropriate and efficient knowledge dissemination through research and involvement in societal development effort.

In the light of the above situation, the National Universities Commission (NUC) adopted various strategies to building and sustaining the system in the country. This includes among others, stipulating specified growth pattern for every university. The first generation universities which have matured in terms of personnel, facilities and with large number of students enrolment were to grow at the rate of three percent annually, while the second generation universities with moderately well-developed facilities and personnel were to grow at the rate of ten percent. The third generation universities were to grow at fifteen percent (Saint, Harmett and Strasser, 2004). In spite of the above measures, the actual growth rate of the universities continues to increase. Okunamiri (2002) observes that Nigerian universities are expanding correspondingly and  it  is  becoming increasingly difficult for  universities to fulfill their functions because of financial constraints and socio-economic co- factors.

Recently the problems that have beset the Nigerian public universities include: students’ population explosion leading to overcrowded and rundown facilities such as lecture halls, hostels and the attendant students’ unrest/cultism,

paucity of teaching and learning materials, the obsoleteness of the curriculum, proliferation of universities and academic programmes, disillusioned and distracted staff of the university and the attendant strike actions, examination malpractices, lack of interest of the private sector in propelling the university system for relevance, poor ranking among the world universities and above all, government’s inability to sufficiently fund the system (Kolo, 2006).

The  demand  for  university education  in  recent  times  has  resulted  in phenomenal increase in enrolment into the Nigerian universities. The report of NUC (2006) shows that the students` enrolment in Nigerian universities has grown by 1200% between October 1999  and March 2006 with an average staff/student ratio of 1:21. In 1999, the enrolment figure of students which was

300,  618  rose  to  750,235  in  2006  and  based  on  the  approved  minimum standards, the university system needed more teachers to cater for this increasing students population. This situation leads to overcrowding in the  institutions which according to Obayan (1999) is a contributory factor to the decline in the quality  of  higher  education.  Oshuntokun  (2006)  notes  that  under  funding remains the major hindrance to the development of the nation’s university sector and by extension, national development. According to Oshuntokun, there is a correlation between under funding of universities in Nigeria and national development.

An examination of the funding system of Nigerian universities and that of other institutions of higher education of the developed countries shows a sharp

contrast. As Dada (2004) submits, rather than progressive movement towards the  minimum standards  of  26%  with  annual  budget  that  every  developing country of the world should allocate to education, there have been reductions. For instance, in 1999, 11.2% of the annual budget was allocated to education, in

2002, it was 5.9% and in 2003, it was 1.83% of the annual budget (Dada, 2004). In 2006, the proportion of the Federal Government budget allocated to education rose to 11.0 %, which also was not sufficient for the three levels of education in Nigeria (Onwuka, 2011). The funding level of education has continued to decrease at an alarming rate especially when the annual budgetary allocation to education in Nigeria is compared with those of other countries. For instance, the breakdown of the 2012 budget shows that 8.43% was allocated to education. Furthermore, it was discovered that out of the N4.9 trillion budget proposal presented  to  the  National  Assembly,  N426.5bn  was  allocated  to  education sector, representing 8.7  %  of the  national budget  (Odika, 2012).  From the foregoing, it  becomes obvious that there  has  not been a  time  allocation to education sector in Nigeria came close to the 26% minimum recommendation by  UNESCO.  This  explains  very clearly  why the  nation’s  universities will continue to suffer the frustration and humiliation of low rating in the world

ranking of universities. In the same vein, the 45th  position of Nigeria in the

ranking   of   African   universities,   behind   South   African   and   Ghananian universities which allocates 25.8% and 31% respectively of their annual budget

to  education    shows  that  Nigeria  is  lagging  behind  in  the  march  towards development (Odika, 2012).

In the United Kingdom for instance, Scott (2005) observes that there is increasing level of funding from the government to provide minimum conducive environment for learning, teaching and research activities. Most universities in Europe and the United States are publicly owned or funded though they have extensive private endowments. Scott (2005) also observes that although universities in England charge fees up-to three thousand pounds a year, there is a special consideration for poor students which include gradual repayment of fees after graduation and maintenance of grants of up-to one thousand pounds a year.

Jhingan (2000) states that developed countries vote huge amount of financial resources to education, training and research. As a result of this, many developing countries of the world especially in Africa lost a great number of their skillful workers to the economies of these countries just to enjoy the better working conditions. Therefore, measuring the state of the nation at present with the laudable goals of the university education reveals that Nigeria is not on the part of what was planned for it through university education.

The National Policy on Education clearly states that the financial obligation   for   the   development   of   education   in   Nigeria   remains   the responsibility of the Federal, State and Local Government although the participation of the Local communities, individuals and other organization is welcomed  (Federal  Republic  of  Nigeria  (FRN),  2010).  Oluchukwu  (2005)

observes that the need for private sector participation in the provision of university education compelled the government to promulgate decree No. 9 of

1993, the Education Minimum Standard and Establishment of Institutions (Amendment) Decree. Through the instrumentality of this decree, the Federal Government  laid  down  guidelines  for  establishing  institutions  of  higher education in Nigeria. Okunanmiri (2005) reveals that private sector participation in the education sector is quite popular in terms of privatization of university education system, but however observes some lapses in the area of high cost disabling the reach of the poor.

Although a number of private companies especially the oil producing companies, either as part of their social responsibility activities or deriving from intense criticism from the host communities, have awarded several scholarships to students, provided learning and teaching materials, their overall contributions to the university education constitute only a very small proportion to the total resources spent or even required (Nnoli, 2003). Okebukola (2003) states that the private sector support constitutes only 10% of the universities fund generation.

Writing   on   the   activities   of   some   government   agencies   towards educational development, NPE  (2010)  reveals  that  relevant  bodies  such  as Education Tax Fund (ETF) Industrial Training Fund (ITF) and National Science and Technology Fund have been established to respond to the funding needs of education.  ETF  which  was  established  in  1993,  for  instance,  has  made remarkable achievements at all levels of education. Nnoli (2003) notes that ETF

intervention in the educational sector in Nigeria covers areas like; construction and  rehabilitation of classrooms/lecture halls,  administrative blocks, hostels, provision of furniture, water, power, telecommunication, computers, etc.

However, some limitations in the activities of these agencies have been observed. ETF for instance serve all levels of education from the primary to tertiary. This spreads the funds realized very thinly across the broad spectrum. It is also evident that there is no strict compliance in the payment of the two percent corporate profit tax which funds the education sector by the private sector. (National Economic Empowerment Development Strategy (NEEDS) (2004). Furthermore, Bello and Fabiyi (2005) observe that ETF lacks the appropriate legislation for the utilization and management of the funds realized. In effect, the impact of the funds on the universities is therefore quite minimal. It has also been disclosed that the Industrial Training Fund (ITF) has not been adequately funded, thus  leading to  a  null in  research activities  in Nigerian universities (Okebukola, 2004).

Generally, it is perceived that the private sector in Nigeria is grossly externalized in the sense that only the multinational corporations are mostly visibly identified in the market economy. Indigenous companies have remained either not well incorporated or lack the bureaucratic structure which makes it difficult for them to be appropriately taxed. NEEDS (2004) adds that most private companies in Nigeria are operating on very weak base and need to be boosted. This is possibly, why most of them hardly declare profit.

Inspired by the outcome of the 1998 World Conference on Higher Education, which recognized higher education as the most important factor in the economic development of the developing countries, Federal Government of Nigeria initiated reform agenda in the Nigeria’s tertiary education. In response to the global call for the attainment of the Millennium Development Goals (MDGs), the Government of Nigeria initiated the National Economic Empowerment Development Strategy (NEEDS) which came up with strategies that represent new dimensions in the policy for the administrations, planning and management of higher education. These include among others; diversifying of funding by attracting private sector and considering more appropriate pricing of facilities and services including hostel accommodations; updating and restructuring of curricular to meet the demands of the national economy (NEEDS, 2004).

With emphasis on the private sector, NEEDS (2004) recommends: greater private sector participation in educational development, creating enabling environment to increase private sector participation, efforts to be made towards achieving 100 percent corporate profit tax that funds education, establishing linkages between the educational institutions and the private sector to ensure appropriate interface with the world of work. In the light of the above situation, various forms of private sector namely: multinational companies, non- governmental agencies,  professional bodies,  quoted  and  non-quoted  private sector  companies  are  being  invited  for  collaboration  with  the  Nigerian

universities  for  their  developments. Such  developments are  in  the  areas  of infrastructure, learning and teaching equipment, research and development, curriculum  reform,  exchange  programs  and  scholarship,  hence,  the  current public private partnership (PPP) initiative in the country.

Public  Private  Partnership  has  generally  been  conceived  of  as  joint venture which is funded and operated through partnership between the government and the private sector companies. While Johnston (2004) perceives PPP as exchange of knowledge between government and private sector towards improvement of their organizations, Ebong (2007) submits that it is the transfer to the private sector of investment projects that traditionally have been executed or financed by the public sector.

In the same situation, public- private- partnership is likened to university- private sector interface. In this regard, Okogie (2007) articulates that University- Industry-Government  partnership is aimed at getting the industries to assist the Government in providing social infrastructures within the universities; commission and fund specific research projects in Nigerian universities to enhance   the   development  of   their   products   and   services;   partner   with universities   for   graduate   retraining   and   quality   enhancement;   allowing academics  into  the  industry  knowledge  exchange  for  specific  projects  and involve   in   voluntary   corporate   fund   raising   to   support   research   and development. In this tripartite business relationship, the Government and universities also have their respective roles in order to foster the partnership.

The Government is expected to provide the enabling infrastructures like power, water, good roads to facilitate the operations of universities and universities on the other hand   make available the operational framework that will guide the partnership towards realization of their expectation sand mandates to the people; ensure adequate funding for the universities established by it so that they can fulfill  their  obligations  effectively  without  stress  and  develop  agenda  for research for national development (Okojie,2007).

On the other hand, universities are required to focus on demand-driven research   and   development   to   attract   patronage   by   the   industries   and Government, ensure capacity building programmes to further scholarship and relevance in the community, collaborate in manpower planning with inputs from the industry in curriculum reviews and expertise and alliances in specific areas through collaboration with other institutions (NEEDS, 2004).

The  principle  for collaboration between Nigerian universities and  the private sector is based on the fact that the products of the universities are utilized by the industries/private sector. Johnston (2004) and Moja (2000) believe that there is a symbolic relationship existing between the private sector and Nigerian Universities, in which the private sector seeks to access scientific knowledge that it does not possess in order to remain competitive. On the other hand, the universities desire to diffuse their knowledge in ways that result in social and economic benefits to them. It is obviously based on this principle that the (NPE

2010) encouraged the participation of the private sector in the development of

the educational sector. It is therefore hoped that the collaboration between the private sector and Nigerian universities will foster this symbolic relationship that is naturally existing and a virile link established between them NEEDS (2004) states that partnership between the private sector and the tertiary institutions will monitor the human and material development of the collaborators and generate innovations for accelerating the Nigerian economy.

The realization that the Federal Government of Nigeria cannot solely fund university education in this crucial time of global economic upheaval also makes the involvement of private sector quite imperative. The benefits that will accrue from the  envisaged collaboration would  hopefully,  improve  the  educational service delivery and boost the profitability of the private sector. It is also hoped that identified common interests in areas and modes of collaboration between the universities and private sector would provide ground for strong partnership in the same vein, knowledge of possible constraints and facilitating structures to partnership could robe off positively in collaborative activities.

The above components are therefore expected to serve as guide to providing the policy framework for effective private sector collaboration in the development and management of Nigerian Federal Universities.

Policy framework has been considered necessary because often times, there are cases of bickering and strife among officials of each collaborating institution over control of funds and hiring of contractors and at times misappropriation  of  funds.  These  conditions  result  in   haphazard  and/or

abandonment  of  projects  and  in  effect,  militate  against  development  and effective management of Nigerian Federal Universities.

There is therefore the need for a policy framework which according to Ojedele and Ilusanya (2006) and Hornby (2000) is an articulated statement of purpose that guide present and future actions and decisions towards goal achievement.  The  policy  framework  will  regulate  collaboration  between Nigerian Federal Universities and  the  private  sector  in  order  to  maximally achieve the goals of university education and the much desired economic development of the country .This is what the study addressed.

Statement of the Problem

It has become glaring that the Federal Government cannot solely finance Education without the involvement of the private sector which depends on the products of the universities in terms of highly skilled personnel and research results to maximize production. The private sector is known to be profit-driven. On the other hand, the universities major concern is the production of high level manpower. To assist in economic development, collaboration between the universities and private sector implies that both should be interested parties in the improvement of their organizations.

Universities and other tertiary institutions are encouraged to explore other sources of funding apart from government subvention such as endowments, consultancy  services  and  commercial  ventures.  The  National  Policy  on

Education (Federal Republic of Nigeria, 2010) merely encouraged private sector involvement in university education and recommended that the internal organization   and   administration   of   each   institution   shall   be   its   own responsibility. Operational modalities  for  private  sector  collaboration in  the provision of educational supports were not stated in the policy. Universities are therefore handicapped due to inadequate guidelines for effective collaboration with the private sector. In effect, there are no uniform standards or modalities for  the  collaborative activities  between the  private  sector  and  the  Nigerian universities.

The  issue, therefore, is the operative rules or guidelines for effective partnership between the private sector and the Nigerian universities such that will provide a sense of direction and unity of purpose to regulate the collaborative activities. The problem of the study is the need for policy framework for private sector collaboration in the development and management of the university system in Nigeria. The framework will provide the needed direction, uniformity and regulation in collaboration between the private sector and Nigerian Federal Universities.

Scope of the Study

There are various perspectives of the issue of private sector participation in the management of the Nigerian university system. This study was limited to

the provision of the policy framework for private sector collaboration in the development and management of the Nigerian university system.

The  geographical  scope  of  the  study  was  limited  to  the  Federal Universities within the six-geo political zones of Nigeria including regional universities,   universities   of   agriculture   and   universities   of   science   and technology and the registered private firms that are quoted on the Nigerian Stock Exchange.

Purpose of the Study

Generally, this study was undertaken to provide policy framework for private sector collaboration in the development and management of the Nigerian university system. Specifically, the study aimed at:

i.   determining the principles for collaboration between the universities and the private sector.

ii. determining  the  rationale  for  private  sector  collaboration  with  the universities

iii. ascertaining   the   benefits   of   private   sector   collaboration   in   the development and  management of Nigerian university system.

iv. identifying areas of private sector collaboration in the development  and management of Nigerian university system.

v.  identifying the modes of private sector collaboration for physical facilities in the development and management of Nigeria, university system.

vi. identifying the constraints to effective private sector collaboration in the development and management of the Nigerian university system.

vii.  identifying the facilitating structures to private sector collaboration in the development and management of the Nigerian university system.

Significance of the Study

Generally, this  study will  be  useful by  way  of providing a  sense of direction and unity of purpose in the collaborative activities between Nigerian universities  and  the  private  sector  in  the  development and  management of Nigerian universities.

Theoretically, the study reviewed goal attainment theories and models such as exchange relationship, social system, contingency and policy/decision making theories and models. These would supplement the existing body of knowledge on university – private sector interface towards actualization of the respective organizational goals.

It is expected that the  finding of this study will serve as a basis for providing valuable information to the federal government, educational planners, Nigeria public universities, private business organization, students, parents and researchers.

The federal government of Nigeria will benefit from this study in the sense that the study will reveal ways of attracting and diversifying funding of Nigerian  universities.  This  could  then  serve  as  guiding  steps  to  policy

implementation.  The  government  may  then  be  leveraged  to  being  able  to consider the needs of different sectors of the economy adequately. The federal Government owns the federal public universities which collaborate with the private sector in the development and management of the universities. The result of this study will provide the information with respect to the motives and fears of the private sector towards getting adequately involved in the business of university development and thus provide the enabling environment for effective collaboration. The policy framework so provided will enhance collaboration between universities and the private sector and thus facilitate the actualization of the goals of the university and the private sector. This is expected to accelerate the economic emancipation of the nation and thus quicken the steps to attaining national development and the Millennium Development Goals.

To the educational planners, the study will disclose areas of collaboration between universities and the private sector. This will create a store house of information which will enable government agencies such as the National Universities Commission (NUC) to areas of joint ventures, the modes to adopt and provide the guiding rules and modalities which this study will provide.

The Nigerian public universities may benefit from this study since multifaceted synergy of access to expertise, working culture and industry knowledge would  be  developed and  promoted through  a  policy  framework which this work provided. By so doing, duplication of efforts would be avoided in the university management and overhead expenditures, reduced. Also, steps

to establishing mutual confidence and trust with the private sector and other educational stakeholders, which this study disclosed through policy framework that will evolve might be useful to the universities` authority.

The private sector which activities are profit-driven may benefit from the policy framework which was provided by this study for optimal business collaboration. Also, greater visibility of the private sector may be achieved and business expansion guaranteed.

Evolvement of policy framework for private sector collaboration is expected to promote collaboration especially in the areas of provision of facilities.  It  is  hoped  that  this  will  result  in  provision  of  more  access  to university education for qualified Nigerian candidates. This in turn will bridge the gap between the “have” and the “have not”, which is currently being created through the establishment of many private universities in the country. University students will be  more likely to  learn with greater concentration for optimal results as a result of improved educational services. This will result in development of leadership and team skills in the students as they benefit from real-life experience not available in the classroom Greater number of students will then be accommodated in the hostels built within the campus, thus, minimizing the cultism related cases of the off-campus hostels. In the same vein, with  improved  educational services,  parents  may  be  minimally  relieved  of financial burden involved in the cost of university education of their children.

By way of articulating policy framework for private sector partnership with Nigerian universities, this study might serve as a reference point that could be  consulted  for  future  co-operative  ventures  by  Nigerian  universities  and private sectors.

Research Questions

The following research questions guided the study:

1.  What  are  the  principles  for  the  private  sector  collaboration  with universities?

2.  What is the rationale for private sector collaboration in the development and management of Nigerian universities?

3.  What are the benefits of private sector collaboration in the development and management of Nigerian universities?

4.  In what areas should the private sector collaborate in the development and management of Nigerian universities?

5.  What are the various modes of private sector collaboration for physical facilities in the development and management of Nigerian universities?

6.    What are the constraints to private collaboration in the development and management of Nigerian universities?

7.  What are the facilitating structures to effective private sector collaboration in the development and management of Nigerian universities?

Research Hypotheses

The  following  null  hypotheses  guided  the  study  and  were  tested  at probability level of 0.05.

Ho1: There is no significant difference between the mean ratings of respondents from the universities and those from private sector on the principles for private sector collaboration with universities.

Ho2:   There is no significant difference between the mean ratings of the respondents from universities and those from private sectors on the rationale for private sector collaboration with universities.

Ho3:   There is no significant difference between the mean ratings of the respondents from universities and those from private sectors on the benefits of private sector collaboration with universities.

Ho4:   There is no significant difference between the mean ratings of the respondents from universities and those from private sectors on areas of involving the private sector for collaboration with universities.

Ho5:   There is no significant difference between the mean ratings of the respondents from universities and those from private sectors on the modes of collaboration for physical facilities.

Ho6: There  is  no  significant difference between the  mean ratings of the respondents from universities and those from private sectors on the constraints to effective private sector collaboration with universities.

Ho7: There  is  no  significant difference between the  mean ratings of the respondents from universities and those from private sectors on the facilitating  structures  to  effective  private  sector  collaboration with universities.

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