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PUBLIC-PRIVATE-PARTNERSHIP AND SUSTAINABLE HIGHER EDUCATION FUNDING : THE NIGERIAN EXPERIENCE BY Professor Bashiru Ademola RAJI Vice-Chancellor Fountain University, Osogbo, NIGERIA 26 th June, 2014. PROTOCOL.

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  1. PUBLIC-PRIVATE-PARTNERSHIP AND SUSTAINABLE HIGHER EDUCATION FUNDING : THE NIGERIAN EXPERIENCE BYProfessor BashiruAdemola RAJI Vice-ChancellorFountain University, Osogbo, NIGERIA26th June, 2014

  2. PROTOCOL I thank the organisers, World Education Congress, for this opportunity to share the Nigerian Experience of how the Public Private Partnership has been helping to sustain higher education funding in my country, Nigeria.. It is also my pleasure to stand before this wonderful gathering to share my thoughts and ideas on the Nigerian experience of public private partnership in tertiary education funding in Nigeria. I hope we shall take one or two lessons from here.

  3. Introduction “….higher institutions in Sub- Saharan Africa face the formidable policy challenge of balancing the need to raise educational quality with increasing social demand for access… the task of funding these institutions will become increasingly difficult in the years ahead, as the youth population continues to grow, each country will have to devise a financing approach to higher education development that enables it to meet the challenge” (World Bank Report,2010)

  4. Introduction (Contd.) In the light of the above, this paper will examine the concept of PPP, its models and successes with examples drawn from two Nigerian Universities. Specifically, we will focus on Nnamdi Azikiwe University (Awka) and Fountain University (Osogbo), all of them in Nigeria. At the end of the paper, participants will be able to understand the depth of Public Private Partnership as adopted and explored in funding Nigerian tertiary education.

  5. Public Private Partnership : Definitions Even though there is no concrete definition of PPP, stakeholders, proponents and critics alike have come up with some working definitions of this concept. A report by Education International(2009) examines the different descriptions : • “An Agreement between governments and a private partner(s) (that may include the operations and financiers)according to which the private partner(s) delivers the service in such a matter that the service delivery objectives of government are aligned with the profit objectives of the private partner(s) and where the effectiveness of the alignment depends on a sufficient transfer of risk to the private partner(s)’’. (OECD, 2008)

  6. Public Private Partnership : Definitions (Contd.) • “ The set of arrangement in which the private sector carries out the role of supplier of infrastructure of assets and services that have traditionally been provided by the government.” (IMF 2004). • “The transfer to the private sector of investment projects that traditionally have been executed or financed by the public sector.” (European Commission, 2003). • “A wide variety of working arrangements from loose, informal and strategic partnerships, to design build-finance-and-operate(DFBO) type service contracts and formal joint venture companies.”( European Investment Bank,2004).

  7. Public Private Partnership : Definitions (contd.) For the purpose of discussing the Nigerian experience, we will agree with Egboka (2013) who describes PPP asa contractual arrangement formed between public and private sector partners involving the private sector in the development, financing, and operation of a public facility or service. He identifies the following as important features of PPP : • Pooled Public and Private Resources • Shared Responsibilities • Complementary Efforts • Equity Sharing (if there is government organ investment) • Formation of Special Purpose Vehicle (to develop, build, maintain and operate for the contracted period)

  8. Models of PPP Egboka (2013) identifies the following as common models of PPP some of which has been successfully adopted by Nigerian universities : • Design-Build (DB) or Turnkey Contract • Management Contract • Lease and Operate Contract • Design-Build-Finance-Operate (DBFO) • Build-Operate-Transfer (BOT) • Buy-Build-Operate (BBO) • Build-Own-Operate (BOO) • Build-Own-Operate and Transfer (BOOT) • Donor-Financed/funded-Transfer

  9. Origin of PPP in Education • PPP has a long history of practice with Netherlands, Belgium and Denmark as pioneer adopters (IE,2009) • However, the present notion of PPP could be traced to early 1990s • It has a variation in nomenclatures in different countries of the world • UK (Private Finance Initiative) • Canada(Alternative Financing Procurement) • Mexico (Service Provision Project) • Nigeria has adopted the concept of PPP since the beginning of her 4th Republic in 1999. • The ICRC Act was signed in 2005.

  10. The Nigerian Education Funding Scenario • Nigeria has 40 Federal; 38 State and 51 Private Universities • Nigeria has not been able to meet the UNESCO standard for funding of education (i.e. 26% budgetary allocation) • Lemo (2013) says the highest allocation so far between 2006 and 2013 has been 8%. • Lemo (2013) also insists that 60% of funding for Nigerian universities goes into recurrent expenditure • To complement government funding, agencies such as the Education Trust Fund and Central Bank of Nigeria intervene on infrastructural development in Nigerian universities. • Yet, funding has not been sustainably adequate for universities in Nigeria.

  11. The Nigerian Education Funding Scenario (Contd.) • Records show that 1.5 million candidates have consistently been applying for admission in the last 5 years in Nigeria due to inadequate funding and facilities (Lemo, 2013:23) • 250,000 of these candidates are admitted (Lemo 2013:23) • From the scenario painted here, Nigerian tertiary education faces two key issues • Inadequate funding • Limited access The question now is how do Nigerian universities cope with these two key issues?

  12. PPP : The Nigerian Experience • Universities in Nigeria are exploring the PPP option • They are redefining terms, models and concepts in PPP(as will be shown shortly) • In Nigeria, the Infrastructure Concession Regulatory Commission (ICRC) oversees PPP contractual agreement. • The ICRC has developed the National Policy on Public Private Partnership • In addition to this, he Commission regulates PPP agreement, monitors and supervises PPP projects in the country.

  13. Steps to PPP in Nigeria Egboka (2013) lists the following as necessary steps to be considered before a PPP agreement is signed : • Clear vision, missions and goals for the partners • Thorough cost benefit analysis of projects • Secured contract detailing with clear shared responsibilities • Jointly agreed dispute resolution mechanism

  14. PPP in Action In Nigeria: NnamdiAzikiweUniversity, Awka Profile • Established in 1980 by the old Anambra State. • Handed over to the Federal Government in 1992. • Philosophy is to disseminate knowledge to individuals without let or hindrance • Has two campuses in Awka and Nnewi, South Eastern Nigeria In the face of inadequate funding, the university has adopted PPP in developing the following projects :

  15. Fig. 1. ChikeOkoli Centre for Entrepreneurial Studies (Donor-Design-Funded-Build and Transfer Project by ChikeOkoli Foundation)

  16. Fig. 2. JUHEL Building housing the Faculty of Pharmaceutical Sciences, UNIZIK. This is also a Donor-Design-Build and Transfer Project.

  17. Fig. 3. ELMADA International Hostels : A PPP Project of Build-Operate-Transfer model

  18. Fig. 4CHISCO Institute of Transportation Studies (A Donor-Build and Transfer Project by CHISCO Transport Ltd)

  19. Fig. 5Gauze Pharmaceuticals Ltd Pharmacy : A PPP Project of Build-Own and Operate (BOO) Model

  20. PPP in Action In Nigeria: Fountain University, Osogbo, Nigeria. Profile Established in 2007 by NASFAT ( a religious body) Located in Osogbo, South Western Nigeria It is privately run by a faith-based organisation It is a pace-setting institution in terms of learning, character-building and service to humanity As a private institution, it faces a daunting task in raising funds to meet its vision It has explored the concept of PPP for the following projects:

  21. IBB Students’ Centre : A Donor-Build and Transfer Project

  22. Hall Accommodation Project : Build-Operate and Transfer Project (BOT) facilitated by EasyPlace Properties

  23. A Model of CONAS Complex: Donor-Financed/Funded Project (in partnership with Al-Jaiz Bank,Nigeria).

  24. Hajia Amina Namadi Sambo Multi-purpose Hall: Donor-Build-Transfer Project

  25. Adegunwa Hall of Residence: Donor-Build-Transfer Project

  26. Conclusion This paper has taken us through the practice of PPP in Nigeria. It focuses on two selected universities in Nigeria It has revealed that Nigerian universities are becoming creative as far as funding issues are concerned They are coming up with different models of PPP Fountain University, being a private institution, is exploring both public-private as well as private-private partnerships PPP practice in Nigeria is far from being perfect In fact, it has tilted more towards infrastructural development However, it is still a right direction towards ensuring sustainable funding for universities Even though we have to do more, quality tertiary education could only be achieved when sustainable funds flow in from individuals, private sector and other sources.

  27. Thank you very much for your time!

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