2017 Budget: Why votes for recurrent expenditure may affect Nigerian universities’ performance

- The Ministry of Education gets the sum of N398 billion (88.8 per cent) for recurrent expenditure and N50 billion (11.2 per cent) forcapital spending in the 2017 Budget proposal.


- In the 2016 ministry of education budget, N37 billion (7.7 per cent) was allocated for capital expenditure while N445 billion (92.3 per cent) was allocated for recurrent expenditure.


- In the Budget, University of Ibadan, N13 billion representing 99.2 per cent was allocated for recurrent expenditure while N99million went into capital provisions, representing 0.8 percent of the total allocation of N13.1 billion for the institution.


As Nigerian universities grapple with the challenge of basic infrastructure, there are concerns over the disparity in proposed allocations for capital and recurrent expenditure contained in the 2017 budget proposal of the education ministry.


In the Ministry of Education budget proposal, N398 billion (88.8 per cent) was allocated for recurrent expenditure and N50 billion (11.2 per cent) allocated for capital spending.



Compared to the 2016 budget, however, the figures appear better as less sum was allocated for capital expenditure and more for recurrent. In the 2016 ministry of education budget, N37 billion (7.7 per cent) was allocated for capital expenditure while N445 billion (92.3 per cent) was allocated for recurrent expenditure.


University of Ibadan 



Disparity in allocations between capital and recurrent expenditure was much worse in thecase of universities. A breakdown of the allocations to universities in the 2017 budget shows that recurrent expenditure still gulps a large chunk of the entire budgetary allocations to the universities.




In the budgetary allocation proposed for Nigeria’s oldest university, University of Ibadan, N13 billion representing 99.2 per cent was allocated for recurrent expenditure whileN99 million went into capital provisions, representing 0.8 percent of the total allocation of N13.1 billion for the institution.




For Ahmadu Bello University, N14 billion (98.5per cent) was allocated for recurrent expenditure while N219 million 1.5 per cent) was budgeted for capital expenditure.


The University of Abuja, however, fared better with N4 billion (89.7 per cent) recurrentexpenditure and N457 million (10.3 per cent) capital budget.


While older universities already have significant structure and thus may require less money for capital expenditure, similar scenarios existed for the newly established universities.


Premium Times reports that the worst hit institution among new universities is the Federal University, Kashere, Gombe State with N2.4 billion (93.6 per cent) recurrent expenditure and N164 million (6.4 per cent) capital proposal.


It was followed closely by Federal University, Oye-Ekiti with N2.3 billion (93.3 per cent) recurrent and N164 million (6.7 per cent) capital expenditure projections, respectively.


The Federal University, Dutsin-Ma, Katsina State, had what could be considered a fair proposition among the lot with N2 billion (83.3per cent) recurrent expenditure and N400 million (16.7 per cent) capital spending proposal.


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