Amid calls for increased funding of tertiary education by successive governments, alternative sources of funding have remained largely untapped by the institutions, OWEDE AGBAJILEKE reports.

The disparity in endowment funds between Nigerian universities and their global counterparts is stark, with the University of Cape Town’s (UCT) N441 billion funds dwarfing the combined N6.8 billion of eight Nigerian public institutions.

This glaring gap highlights the challenges facing Nigeria’s higher education sector, where alternative funding sources remain largely untapped. The implications of this funding gap are far-reaching, with Nigerian universities struggling to compete on the global stage.

While urging public institutions to explore diverse funding sources beyond government allocations, including leveraging alumni networks, private-sector partnerships, and endowment funds, stakeholders noted that the disparity underscores the need for universities and policymakers to prioritise the development and effective management of endowment funds.

This, they noted, would enhance the global competitiveness of Nigerian higher institutions and empower them to address pressing challenges, including poor infrastructure, low research budgets, and brain drain.

The situation is further complicated by the fact that many Nigerian universities lack financial autonomy, with funds centrally managed and politically influenced, discouraging private and corporate donors.

As universities navigate these challenges, experts have called for a shift towards more sustainable funding models, including professionalising fundraising, endowments, and leveraging alumni networks to drive growth and development.

Findings by The Guardian showed that the University of Cape Town (UCT), South Africa, has an endowment fund valued at N441 billion (R5.3 billion/$318 million), surpassing the combined N6.8 billion ($4.3 million) generated by eight Nigerian public institutions.

Specifically, UCT’s endowment fund is 64 times higher than the combined endowment funds of eight Nigerian universities.

Checks on the websites of eight public institutions revealed that they realised a combined sum of N6.80 billion as endowment funds between 2024 and 2025.

The institutions include the University of Lagos (UNILAG) N4.4b; the University of Benin (UNIBEN) N22.33m; the University of Jos (UNIJOS) N303m; Yaba College of Technology (YABATECH) N50m; and the Federal University of Technology, Owerri (FUTO) N50m.

Others are University of Ilorin (UNILORIN) (N301m); Federal University, Dutsin-Ma N37m and Modibbo Adama University, Yola, N1.6 billion.

Checks on the websites of most universities of neighbouring countries revealed that information on endowment funds was not published. Institutions checked by our correspondent include Kwame Nkrumah University of Science and Technology (KNUST), University of Ghana, and Makerere University, Uganda, among others.

However, the University of Cape Coast has an endowment of 5.7 billion Ghanaian cedis (N740 billion/$530 million).

Experts noted that the disparity highlighted the major challenges Nigerian tertiary institutions face in competing on the global stage.

Others also believe it should serve as a wake-up call for universities and policymakers to prioritise the development and effective management of endowment funds, while exploring innovative ways to attract greater funding and resources.

Globally, endowment funds are a pool of donated funds from individuals, organisations, and trusts. These donations are then invested, and the returns from those investments support the institution’s operations, research, and other strategic initiatives.

In September 2024, the federal government, through the National Universities Commission (NUC), granted universities and research institutions the autonomy to operate their endowment fund accounts in commercial banks, exempting them from the Treasury Single Account (TSA).

The decision was aimed at strengthening these institutions’ financial independence and improving their capacity to attract and manage funds.

The policy shift was also expected to enhance financial management and promote the long-term sustainability of Nigerian universities.

In a letter signed by the then Acting Executive Secretary of NUC, Chris Maiyaki, it conveyed the President’s directive to the Coordinating Minister of Finance and National Economy, Wale Edun, granting universities and research institutions the autonomy to operate their endowment fund accounts in commercial banks.

However, some stakeholders have cautioned that the transition to financial autonomy should be gradual, considering the decades-long dependence on government funding.

For the Academic Staff Union of Universities (ASUU), it is unrealistic to expect results without addressing the universities’ financial woes, low research budget, poor infrastructure, and lecturers’ poor living conditions. This, it lamented, has exacerbated brain drain in the sub-sector.

In an interview with The Guardian, the ASUU Chairman, University of Abuja Chapter, D. Sylvanus Ugoh, recalled the good old days when Nigerian higher institutions attract international students and lecturers.

“The University of Cape Town that you talked about, check what government at a point started doing before they could get to that point. It is not just a one-way traffic. I think both the government of the day and the universities have roles to play.

“There was a time in this country you would see other nationals teaching in our universities. Today, the way our universities are and what we are paying lecturers, can you even attract a lecturer from Ghana or Niger Republic?

“We even had students of Benin Republic coming here. Today, is it not the other way round? Instead of us attracting people, our lecturers are going away in droves. You see professors leaving Nigeria. And you know how long it takes for you to produce one professor. And after you’ve produced a professor in his area, he will leave this country and go overseas. At least, he will be comfortable. It’s not the best of situation, but we need to give it serious attention,” he said.

On his part, the Chief Operating Officer (COO), EDUCARE, James Nnanyelugo, described the contrast as ‘striking’ and ‘not surprising.’

According to him, the development highlights the deep structural issues in fundraising, governance, alumni relations, and government policy in Nigerian higher institutions.

The EDUCARE chief subsequently charged universities to move from ‘surviving on allocations’ to ‘thriving on innovation and investment,’ emphasising that it is not only possible, but overdue.

It was also observed that out of the 203 federal universities, polytechnics and colleges that the Nigerian Government requires to publish their financial records, including endowment funds, on their websites, only the eight aforementioned institutions had published their endowment funds as of the time of filing this report.

This, Nnanyelugo noted, calls for concern, given the importance of transparency and accountability in managing public funds.

He added that it also raises questions about the management and oversight of these institutions’ finances.

Further checks on data uploaded by public institutions revealed that 10 Nigerian universities have polled a combined N24,695,358,104 in research grants since 2024 to date. Findings showed that the amount involved both domestic and international grants.

The 10 institutions cutting across the six geopolitical zones of the country include: University of Benin (UNIBEN), University of Jos (UNIJOS), Bayero University Kano (BUK), University of Ilorin (UNILORIN) and University of Nigeria Nsukka (UNN).

Others are Obafemi Awolowo University (OAU), Federal University of Technology Owerri (FUTO), Federal University Dutsin-Ma, National Open University of Nigeria (NOUN), as well as Modibbo Adama University, Yola.

Nnanyelugo said: “Firstly, donors want accountability, transparency, and impact, and many Nigerian institutions struggle in these areas due to inconsistent leadership, poor audit cultures, and opaque financial practices.

“Secondly, while other institutions tap into global alumni networks, Nigerian universities often underleverage their most powerful assets — their alumni. And this may not be unconnected to poor data management and a lack of structured alumni development programmes, which create major funding bottlenecks.

“Again, many Nigerian public universities lack full financial autonomy; Funds are centrally managed and politically influenced, which discourages private and corporate donors.

“The disparity between UCT and Nigerian universities isn’t just about money — it’s about vision, structure, and long-term planning. Until Nigerian universities take endowment building as seriously as academics, they will remain dependent on erratic government funding.”

To boost university endowments, he called on institutions to professionalise fundraising by setting up dedicated offices with trained staff and adopting modern tactics.

He also advocated reforms requiring transparent annual financial reports and independent boards, adding that activating alumni networks through robust databases and offering benefits can generate support.

Establishing business ventures like consulting arms, real estate, or research laboratories, he added, can provide additional income streams, stressing that by building partnerships with the private sector, universities can tap into viable markets and opportunities.

On his part, the National Mobilisation Officer, Education Rights Campaign (ERC), Michael Adaramoye (Lenin), attributed the low endowment funds to what he called ‘weak private sector’, even as he advocated for proper government funding and democratic management of educational institutions to ensure the long-term sustainability of public education.

He argued that public tertiary institutions should not aim to be self-sufficient, instead prioritising quality education delivery with active government funding.

“Sadly, government concerns and support to education has been abysmal over the years; the concern of stakeholders must be how to ensure proper funding of institutions by the government. Today, due to poor funding of public education, many schools are outrageously raising their fees and chasing donors to boost their endowment funds.

“However, where there are means to raise funds for the school, without burdening students, it can be done. Most institutions today have such investments. A public institution is meant to operate on public funding; it is terrible that this responsibility of funding has been placed on administrators of schools, who also turn to students to milk them.

Adaramoye noted that the problem that exists with endowment funds in Nigeria is the weakness of the private sector. Many institutions raise endowment funds through private-sector donations, which are invested in the name of the school. The weakness of the private sector means that donations do not often come.

“It is also important to note that many of the investments made by schools are usually faced with the problem of corrupt practices, which mostly led to their collapse.

Although the focus of an intellectual establishment should not be business investment, the undemocratic character of many institutions, which results in corrupt practices, also drastically affected their ability to generate revenue via endowment funds.”