ABSTRACT

Nigeria has over the years invested substantially to improve the educational attainment of the labour force and to raise productivity but yet still faces declining real output and slow economic growth as a means of achieving the desired socio- economic change needed in Nigeria. The study is to examine the impact of government expenditure on standard of education in junior secondary school in OgunState (a case study of Abeokuta south local government). The johansen’s co integration analysis and ordinary least square (OLS0 econometric techniques were used to analyze the relationship between gross domestic product (GDP) and recurrent education expenditure. Finding indicates that though a positive relationship subsists between education expenditure and economic growth, but a long run relationship does not exist over the period under study. The study observed that this puzzle is attributable to labour market distortion, redundancy of the work force, industrial dispute and job discontinuities as well as leakages in the Nigeria society such as brain drain, among others. In conclusion above revealed the impact of government expenditure on standard of education in junior secondary schools in OgunState through the questionnaire that was carried out to the Abeokuta south local government to which government expenditure has improved the learning and teaching system in junior secondary schools. 

CHAPTER ONE

INTRODUCTION

1.0  BACKGROUND OF THE STUDY

Nigeria has over the years substantially to improve the educational attainment of the labor force and to raise productivity but yet still faces declining real output and slow economic growth. The paper focus on the impact of government expenditure on standard of education on the economic growth as a means of achieving the desired socio economic change needed in Nigeria or in each states. The study uses time series data from 1981 to 2012. The Johan-series co-integration analysis and ordinary least square (OLS) econometric techniques were used to analyses the relationship between gross domestic product (GDP) and recurrent education expenditure.

Findings indicate that though a positive relationship subsists between education expenditure and economic growth, but a long run relationship does not exist over the period under the study. The study observed that this puzzle is attributed to labor market discontinuities as well as leakages in the Nigeria society such brain drain, among others. In conclusion, the above study has shown that educational sector has not been productive as expected. This is evidenced by the poor quality of graduates, increasing cases of cultism in schools and high rates of drop outs. The paper further suggests the improvement of the education system through efficient use of public resources through good governance, accountability and transparency. Also, efforts should be made by policy makers to come up with polices that would check, preserve and protect the plight of educational capital to other countries.

1.1       INTRODUCTION

It is well and widely accepted that infrastructure is a key to economy growth. Infrastructural contributes to economic growth of the schools by increasing the teachers and providing facilities for them, low unit cost of production and enhances the quality of life. Government expenditure improves the standard of education and can also contribute to sustainable growth in enhancing human capital, through improved access to schools. According to the United Nation (2006),under the right condition, infrastructural development can play a major role in promoting the standard of education help to reduce poor quality of students.Against this background, it is importance to review the changes that have taken place in the educational sector of Ogun state and the composition of public expenditure and also to determine if they are responsible for the growth. The objectives of this, study therefore is to examine the impact of government expenditure on education standard in Ogun state. In addition the study aims at examining low government expenditure has affected education in OgunState.      High levels of government consumption are likely to increase employment, profitability and investment via multiplier effects on aggregate demand. Thus government expenditure, even of a recurrent nature do contribute positive toeconomic growth. Education is one of the important areas where government in both developed and developing economics direct its resources. The belief is that the result from education expenditure will go a long way in transforming human, social, economic, cultural and other aspects of the people’s lives. However, the situation will regards to education expenditure which is different from what the theory says. This forms parts of the reason for this study to determine the impact of education growth.

1.2       STATEMENT OF THE STUDY

The poor financial resources to the education sector have been a major problem in the Nigeria education system. The Federal Ministry of Education (2003) agreed that 1975-1999 period was an ill period for Nigeria education system due to instability and financial inadequacies which resulted to largely general economic downturn of the 1980’s. Federal government expenditure on education has been below to percent of the overall expenditure, 70% of its expenditure goes to recurrent activities. There has been large increase in the number of student in there at all levels of education in primary, secondary and tertiary. However, actual expenditure level falls short of the budgetary allocation.

1.3       PURPOSE OF THE STUDY

The board objective of the study is to examine the impact of government expenditure in education on standard education in Ogun state, the following specific objectives will guide the researcher to actualize this goal;

ü  To examine the extent to which public expenditure on education on education leads to improvement in junior secondary schools

ü  To prioritize public expenditure on educational infrastructure according to their relatives contribution.

ü  To examine the impact of public expenditure in education on the standard of education in junior secondary schools in OgunState.

1.4       RESEARCH QUESTION

The following research question will be relevant for the study:

ü  Does government expenditure on education promote the standard of education in junior secondary schools

ü  To what extend had education in Nigeria contributed to knowledge of the students.

ü  What is the relationship between government spending on education and the economy

ü  As government spending on education infrastructural facilities led to the improvement of the standard of education.

1.5       SCOPE OF THE STUDY

The study was limited to Abeokuta South Local Government in OgunState. The school’s are official;and its then entitled to the support of the government. Government are expected intervene in the development of the schools and increase the standard of their education cause the standard of education brings about the great development in the school through which there will be enough infrastructural facilities, qualified teacher and then also have a sound student.

1.6       SIGNIFICANCE OF THE STUDY

The study will provide partial and approximately information on public expenditure in OgunState. For the future, there is a need to put in place mechanism to regularize the comprehensive collection, aggregate and analysis of these expenditures. The findings of the study will be sufficient to power a wider debate on how funds are provided for the educational system in general and for basic education in particular.

1.7       DEFINITION OF TERMS

GOVERNMENT

It is so ingrained in our culture and so much a part of our everyday lives that most of us, when asked can’t offer a very good definition of the actual word. Defining government however is the starting point for any study of the government system. It can be defined as:

ü   The group of people who control and make decision for a country, state.

ü  A particular system used for controlling a country, state

ü  The process or manner of controlling a country, state etc.

According Dr. Harold Damero,a professor of government, he gets a bit more specific with his definition; he says that government is responsible primarily for making public policy for an entire society. He also mentions that government is steering mechanism for a given society that forms the policies that keep a particular society heading in the right direction.

Finally, Black’s law dictionary mentions that the institution of the government regulates the relationship among members of a society and the society of outsider’s aimed that they have the authority to make decisions for the society to meet goals and maintain order.      

Government refers to the system or institutions in operation, the group of people in charge or the process in use in the authority that set rules for a set a society and help its member to one another.

PURPOSE OF GOVERNMENT                                                                                      

Now we’ll turn our attention to specific function of the Nigeria government, which are found in the constitution pre amble they are:

ü  To form a more perfect union

ü  To establish justice

ü  To ensure domestic tranquility

ü  To provide for the common defense

ü  To promote the general welfare

ROLES OF GOVERNMENT       

Let examine a few of the government responsibility that fall under each constitutional function:

ü  To form a more perfect union: The government keeps the country united and helps to form a sense of community, patriotism and national pride. It does this in part by maintaining national movements and hosting celebrations or Independence Day and other national holidays.

ü  To establish justice means making sure that all people receive what is due to them. To maintain justice the government helps distribute resources through social program that aorist those in need. For instance, families who are struggling to make ends meet can apply for government aid and senior citizen often receive social security and Medicare benefit.

EXPENDITURE                                                                                                                              It can be defined as the current value of all the finished goods and services in the economy. It is also the process of facilitating learning, knowledge, skills, value, beliefs and habits of a group of people are transferred to other people, through storytelling, decision, teaching, training or research. Education frequently taken place under guidance of educators, but learners may also educate themselves in a process called autodidactic learning.Although education is compulsory in most places up to a certain age, attendance at school often isn’t and minority  of parent choose home, schooling, sometimes with the assistance of modern electronic education technology.

GOVERNMENT EXPENDITURE

It includes all government consumption, investment and transfer payment. Government acquisition of research spending is claimed as government investment (government gross capital formation). These two types of government spending on final consumption and on gross capital formation together constitute on the major component of gross domestic product.Government spending can be financed by government borrowing seigniorage  or traces, changes in government spending is a major component of fiscal policy used  to stabilize the macroeconomic business cycle. Education:  from English dictionary is the process or art of impacting knowledge skill and judgment. It is also the facts, skills and ideas that have been learned either formally or in informally. It is the process of lifelong which start from birth to ones death, education in this sense can be acquired consciously or unconsciously, deliberately or by accident. Education has been defined from various perspectives by different scholars education is defined as the transmission of cultural, values, aorist, beliefs, arts etc from one generation to another.