CHAPTER ONE

1.0 INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Education is in such high demand in Nigeria because it is both an investment in human capital and a requirement for economic success and progress (Ubogu, 2011). As a result, education has remained one of the most difficult aspects of the late Umaru Yar' Adua administration's Seven-Point Agenda, which he announced upon taking office in the year 2007. The administration encountered a lifeless educational system. Despite the reforms implemented by the administration, there was little on the ground to encourage trust in that critical sector of our economy (Nwosu, 2014). Most Nigerian instructors fled in droves in quest of greener pastures abroad, leaving Nigerian schools and other educational institutions in shambles. In addition to the negative impact of limited and poor funding on the quality of teaching and learning at our school, student aid is now insufficient (Ubogu, 2011). It was so unsurprising that labor unions in the educational sector faced the late Yar' Adu administration with large lists of demands on what should be done to improve the educational sector. To make their views, the unions had to go on an indefinite strike one after the other. The resulting standoff between the Federal Government and the Academic Staff Union of Universities (ASUU) forced universities to close for over four months. According to Adewale, Ajayi, and Enikanoselu (2016), education in Nigeria is facing budgetary difficulties. In particular Enugu state, has less money to spend on basic, secondary, and tertiary education. There are growing concerns over the educational sector's poor funding, while the government accuses the sector of wasteful resource utilization. The contributor claims that government funding on education should be cut. However, as a result of the system's financial issues, education in Nigeria has seen a loss of facilities, deterioration of equipment and plans, and unfinished projects.

A fund is money set aside or collected for a specific purpose, and it is frequently professionally managed with the intention of increasing the fund's worth over a period of time. A mutual fund, which pools money from shareholders to invest in a portfolio of assets such as stocks and bonds, is the most popular type of investing.

The problem of educational funding in Nigeria stems from the government's lack of commitment to providing quality education to the masses, as evidenced by the fact that the total number of students enrolled has tripled in the last decade, while public resources allocated to the education sector have continued to decline from 11.5 percent in 2002 to 8.7 percent in 2017. (Ahmed, 2018). Ozigi (2017), on the other hand, opined that no organization could properly carry out its functions without enough financial resources.. Money is needed to pay staff, maintain the plant and keep the services going. Since a wide array of other sectors of the system competes for the scarce resources available to government, education have often been very poorly funded in Nigeria in the recent times (Ahmed & Adepoju, 2013). The grounds for investing in education and human capital development include that the new generation must be given the relevant parts of the information that previous generations have gathered, and that the new generation should be taught how to apply the current knowledge to generate new results (Longe, 2014). As a result, the underlying purpose for education is to provide masses with the knowledge, skills, and capacity to improve their quality of life, increase productivity, and gain knowledge of new production techniques so that they can actively participate in the development process, given the importance of education to national growth (Ozigi, 2017).

The educational sector's financial allocations for a particular fiscal year support government educational sector; that is, both recurrent and capital expenditures are covered by the budget allocated for that fiscal year and the proportion assigned to Education in Nigeria. Education financing or funding is determined by who governs the educational sector. For example, missionaries support secondary schools; owners or proprietresses fund private secondary schools; and the government, private co-corporate individuals, and the local community fund public secondary schools (Oseni, 2012). The state governments were given constitutional responsibility for financing education in the 1979 constitution, with the expectation that local governments would also support to the cost of elementary education in the country. As a result, the federal government stopped providing financial support and aids to states for basic education, causing primary education in the country and in some regions of Enugu to collapse. This is because of this progressive deterioration; the federal government issued Decree 31 of the National Primary Education Commission (NPEC) in 1988. By this order, the federal government of Nigeria stablished the National Primary Education Fund, sometimes known as the "National Fund," which was deducted directly from the local government's part of the federation account to fund primary education in the country (Iwuanyanwu & Anene, 2011)

The educational sector's level of progress has been intimately tied to the availability of resources allocated to the sector. Funding has been regarded as a vital instrument for the effective management of the educational sector among the resources required. This is due to the fact that money is important for the management and administration of most areas of the economy, including education. On the basis of this, UNESCO suggested allocating 26% of any country's annual budget on educational administration and management (Odia & Omofonmwan, 2018). This is because a funding approach like this will support the basic resources needed for teaching and learning in terms of both quality and quantity. Governments of numerous African countries have made efforts over time to boost the level of finance available for educational administration. This is also true in Nigeria, where the government has made significant improvements in the amount of funds and resources set aside for educational development in recent years (Voice of Nigeria, 2013). The increased budget is aimed at enhancing the quality of education supplied to individuals. For growth and development, the Enugu state government has taken this initiative to increase the quality of education at this level. This is founded on the government's desire for education to be a tool for individual and national growth. (Federal Republic of Nigeria, 2014). As a result, several efforts have been undertaken to reform the educational budgetary allocation. The quality of educational output is positively related to the quality of funding, according to a number of educational stakeholders in the sector. Education, as a sort of social service, is a commodity that the government must offer for as many people in society as are willing and qualified to obtain it. The government is anticipated to make a major support to the provision of this critical public service based on this premise. Therefore the study centers on the impact of funding of educational sector in Enugu south local government Area of Enugu state.

1.2 STATEMENT OF PROBLEM

Education is the engine that empowers individuals to contribute to the nation's long-term growth, and this goal is difficult to attain in the absence of funding and resources. The public has long believed that education spending is solely the responsibility of the three levels of government. Those who believe that subsidizing education will be too difficult for the government alone argue that a paradigm shift is required to instill new core values that are in line with other global realities of society's rapid technological advancements. The need for government institutions and the business sector to invest enough funds in the educational sector is necessary to help our educational system accomplish its objectives. Inadequate financing, on the other hand, has been the bane of our educational growth and development at all levels, particularly in Enugu south. These have become apparent in our schools as a result of the issues that most of our schools confront, such as old structures, insufficient facilities and equipment for teaching and learning, and the welfare of employees in terms of salary and working environment.It is against this backdrop that the researcher intends to find out the impact of funding of education sector in Enugu south local government area

1.3 PURPOSE OF THE STUDY

The main aim of this study is to examine Impact of Funding of Education Sector in Enugu South Local Government Area of Enugu State

1) To examine the benefits of educational funding in Nigeria

2) To examine the impact of funding on the educational sector in Enugu south local government

3) To Examine the Consequences of Inadequate Funding on Education

4) To investigate the challenges facing the educational sector in Enugu south local government

5) To recommend ways of eliminating the problems facing the educational sector through adequate funding.

1.4 SIGNIFICANCE OF THE STUDY

Nigeria is Africa's most populous country and one of the world's most populous. The country also has a high percentage of illiteracy and a declining economy. The level of human capital in the country must improve in order to boost and create a sustainable economy. This might be accomplished by putting a significant amount of money into education. This study would be useful to policymakers because it will give them information on the impact of education financing, which will help them formulate policies for the people of Enugu South. The study may also be useful to educational authorities and administrators, as it will aid in the implementation of reforms and transformations where they are needed.

1.5 SCOPE OF THE STUDY

The study would cover the Impact of Funding of Education Sector in Enugu South Local Government Area of Enugu State. The study would encompass teachers and workers in educational sector in Enugu south.

1.6 RESEARCH QUESTIONS

1) What are the benefits of educational funding in Nigeria?

2) What is the impact of funding on the educational sector in Enugu south local government?

3) What are the Consequences of Inadequate Funding on Education?

4) What are the challenges facing the educational sector in Enugu south local government?

5) What are the ways of eliminating the problems facing the educational sector through adequate funding?

1.7 HYPOTHESIS

HO: There is no significant impact of funding on the educational sector in Enugu south local government Area

H1: There is a significant impact of funding on the educational sector in Enugu south local government Area