When Nigeria established its first university in 1948, the dream was to build strong citadels of learning that would train the manpower needed for national growth. Over the years, the number of universities and students has grown sharply. In 1970, just over 15,000 students were enrolled in Nigerian public universities. By 2019, that figure had jumped to more than 2 million. Today, Nigeria has 62 federal universities and 30 state-owned ones.
Nevertheless, while the numbers have grown, funding has not kept pace with them. Government spending on higher education has continued to decline, leaving universities to struggle with poor infrastructure, outdated facilities, and a deteriorating quality of learning. The problem is made worse by frequent ASUU strikes, which have crippled academic calendars for decades.
Nigeria is not alone in this crisis. A World Bank study published years ago once warned that university education in sub-Saharan Africa was heading into deep financial trouble. Zimbabwe is an example. In the 2000s, the country suspended student grants because of a prolonged economic crisis that saw inflation rise to an unbelievable 1.3 million per cent.
Here in Nigeria, the decline in oil revenue, corruption, and lack of political will have made things worse. In 2023, education got less than 7% of the national budget, far below UNESCO’s recommended 15%. Without a shadow of doubt, the Nigerian government alone can no longer carry the burden of funding universities. If nothing changes, the system risks collapsing completely. This is why experts are calling for new ways to finance universities, and one option that consistently emerges is university endowment funds.
In reality, endowment funds are not new globally. In the United States, for example, schools like Harvard, Yale, and Stanford sit on billions of dollars raised through endowments. Harvard alone has more than $50 billion in its fund, which supports research, student aid, and even professors’ salaries. The university survives mainly on the returns from these investments. In fact, Harvard’s endowment now contributes more than one-third of its yearly operating budget.
In Africa, South Africa leads the way. The University of Cape Town, for instance, raised over 107 million rand (about \$10 million) in the 2000s through donations from within and outside the country. The American University in Cairo and the University of Nairobi also run smaller versions. However, in Nigeria, endowment funds are still largely unexplored.
So, what exactly are they? Simply put, an endowment fund is money given by individuals, companies, or organisations to a university. The money is not spent directly but invested. The school then uses the returns from the investment to fund its activities. Depending on the arrangement, donors can either allow the university complete control of the funds or restrict their use to specific projects like scholarships, infrastructure, or research.
If Nigerian universities embrace this model, the impact could be massive. Endowment funds can provide stable, long-term financing that would reduce dependence on government allocations. They can also help attract and retain top lecturers who are currently leaving the country in droves. With better funding, universities can invest in cutting-edge research, provide more scholarships, and even support young entrepreneurs on campus.
Corporate giants like Dangote, MTN, Globacom, and BUA are constantly looking for ways to tap into Nigeria’s young talent. Partnering with universities through endowments could be a win-win for both sides. While businesses gain access to innovation and research, universities get the funds they desperately need.
At a time when Nigerian universities are struggling under poor funding and frequent strikes, endowment funds may be the lifeline needed. If properly managed and backed by transparency, this model could change the story of higher education in Nigeria—making our universities not just survival centres, but hubs of global excellence.
