Attachment J.18 - State Education Account Reports.pdf

ExEcutivE Summary

Amendment 01 - Solicitation Number: 72062021R00001 - LEARN to Read Activity Attachment J.18 – State Education Accounts Reports

Bauchi State Education Accounts – Public Sector Subaccount -2015/16 & 2016/17 Executive Summary 1

Bauchi State Education Accounts - Public Sector Subaccount

Academic Years: 2015/16 & 2016/17

Executive Summary

November, 2018

Prepared by:

Bauchi State Ministry of Education

In Collaboration with:

Nigeria Northern Education Initiative Program (NEI Plus) Creative Associates International 5301 Wisconsin Ave, NW, Suite 700, Washington DC, 20015, USA. Tel: 202-966-5804

With support from:

United States Agency for International Development, Nigeria

The Northern Education Initiative Plus Project Nigeria

Executive Summary 2

List of Authors Prepared by the State Working Group, under guidance of the Steering Committee, and with support from the Technical Assistance (TA) team. See list below

Prepared with support from TA team:

• Prof. Olakunle Frank Odumosu

• Dr. Deepika Chawla

• Dr. Adebayo Ajala

• Abba Wali Abdullahi

Prepared by the Bauchi SEA IV (Public sector subaccount) State Working Group:

SWG ORGANIZATION

Ahmad Isa Kobi State Universal Education Board Mansur Ahmad Abubakar State Universal Education Board Sallau Musa Dambam Ministry of Education Muhammad Hussain Giade Office of the Accountant General Auwalu Maidawa Bauchi State College of Education Babayo Bura Misau State Library Board Bala Muhammad Ministry of Women Affairs and Child Development Hashimu Muhammed Gital Ministry for Local Govt Affairs Alagh Alexander National Association of Proprietors of Private Schools Maxwell D. Gimba Special Schools Management Board Shamsudeen Shehu Abdullahi Bauchi State Planning Commission Amos W. Dingis Bauchi State Agency for Mass Education Garba M. Bandi Directorate for Higher Education Sani Usman Ganaru Computer Service Directorate, State, Ministry of Finance Umar Ibrahim Computer Service Directorate, LG, Ministry of Finance Muhammad Bature ATBU Teaching Hospital Babaji Garba Faruq Ministry of Information, Tourism and Culture Hamisu Muhammed Dariya Ministry of Health Saleh Muhammad Umar Bauchi State Scholarship Board Nicholas Oshojah Afeso CSACEFA Sadiq Abubakar NEI Plus, Bauchi

Executive Summary 3

Under Guidance of Bauchi State Education Steering Committee

1. Commissioner, State Ministry of Education (Chairman)

2. Commissioner, State Ministry of Women Affairs and Social Development

3. Commissioner, State Ministry for Local Government Affairs

4. Commissioner, State Planning Commission

5. Commissioner, State Ministry of Health

6. Commissioner, State Ministry of Information, Tourism and Culture

7. Chairman, House Committee on Education, Bauchi State House of Assembly (BAHA)

8. Executive Chairman, State Universal Basic Education Board

9. Zonal Coordinator, (North East), Universal Basic Education Commission

10. Executive Secretary, Bauchi State Agency for Mass Education

11. Secretary, Agency for Nomadic Education

12. Director of School Services, State Ministry of Education

13. Director of Planning Research and Statistics, State Universal Basic Education Board

14. Director of School Services, State Universal Basic Education Board

15. Director Human Resource, Scholarship Board

16. Provost, State College of Education, Azare

17. Provost, State College of Education, Kangere

18. Rector, Abubakar Tatari Ali Polytechnic, Bauchi

19. Chairman, Christian Association of Nigeria

20. Chairman, Council of Ulamas

21. Chairman, Council of Chiefs

22. Chairman, State Parent Teachers Association

23. Chairman, State Nigerian Union of Teachers

24. Chairman, CSACEFA

25. National Teachers Institute, Bauchi

26. President, Association of Proprietors of Private Schools

27. NEI Plus State Team Leader (Bauchi) (Co-Secretary)

28. Director of Planning Research and Statistics, State Ministry of Education (Secretary)

Executive Summary 4

BAUCHI STATE EDUCATION ACCOUNTS

Public Sector Subaccount

Academic Years

2015/2016 & 2016/2017

1. Background

The Northern Education Initiative Plus project (The Initiative), funded by United States Agency for International Development (USAID), is supporting the Bauchi State Ministry of Basic and Secondary Education with improving access to and the quality of education in the primary grades with a focus on early grade reading. The project aims to do so by strengthening the quality of teaching as well as strengthening the systems in the State to enable the State to offer a variety of options that better serve the pupils in the system and those not in the system. As a part of this systems strengthening exercise, the Initiative project has supported the Bauchi State Ministry of Basic and Secondary Education with the conduct of a State Education Accounts subaccount that follows the public sector financing of education in the State of Bauchi for the 2015/16 and 2016/17 school years. This report provides a summary of the findings.

2. Overview of the Nigerian Education System

2.1 Education System

The government of Nigeria has declared education as one of its priorities. The goal is to have a reformed system of education that will provide access at all levels of education and to improve the quality and efficiency of the entire education system by strengthening: (1) the institutional management of education; (2) access and equity; (3) standard and quality assurance; (4) teacher education and development; (5) technical and vocational education and training; and (6) funding, partnerships, and resource mobilization,1 making it an instrument for transformation and socioeconomic empowerment.

Since independence, the Nigerian education system – comprised of three distinct systems: the indigenous system, the Quranic schools, and formal European-style education institutions – has undergone a range of reforms. Through its National Policy on Education, which was first introduced in 1977 and was last updated in 2013,2 the government has tried to transform the education system from its British Colonial structure to a structure that is more relevant to the culture and life of the Nigerians, and in line with its development aspirations expressed in Vision 20:2020. The National policy includes four key objectives: (1) provision of universal access to basic education, (2) expansion of the publicly financed secondary and tertiary education, (3) outlining national language policy, and (4) building national capacity in science and technology. The policy provides for both formal and non-formal education and stipulates a 1-6-3-3-4 or 1-9-3-4 structure that offers nine years of basic compulsory education, (including six years of primary education and three years of junior secondary

1 FMOE 2012.

2 Federal Republic of Nigeria, National Policy on Education – 6th Edition (2013), Nigerian Educational Research and Development Council, Lagos, Nigeria

Executive Summary 5 education, starting at 6 years of age), three years of senior secondary and four years of higher education provided by a mixture of public and private providers (FRN 2013). To complicate matters still more, in Nigeria, especially in the northern states, there is a strong non-formal religious sector as well. Many children in these states attend these schools in addition to the formal school, but for several others the non-formal religious schools are the only source of education. These schools can be grouped into local community Qur’anic schools and the more residential Almajiri schools, often referred to as ‘Tsangaya’. Information on these schools is even more fragmented than for the formal schools.

2.2 Education Financing in Nigeria

Education is a concurrent responsibility of the Federal, State and Local governments under the Constitution of Nigeria which provides the legal framework for educational management in Nigeria and stipulates that the government provide basic education free of charge for all citizens. By this arrangement, although a few functions are exclusively assigned to the Federal, State or Local government, most of the functions and responsibilities are in fact shared by the three tiers of government. Education in the public sector is funded primarily through government sources with a small proportion coming from households and the donor agencies (rest of the world). In the private sector however, the distribution is reversed with the private sector (households, community, foundations, etc.,) contributing the bulk of the funds. The main focus of the Federal government is on tertiary education. In addition, it also manages a few Secondary schools across the State and provides targeted funding for special projects in the states through agencies such as the TETfund. The State government is primarily responsible for provision of secondary education as well as non-formal education.

All three tiers of government – Federal, State, and Local – fund basic education. The Federal government provides financing mainly for capital expenditure through the UBE program and several targeted intervention funds. The State governments provide money for capital expenditure and for recurrent costs for the SUBEB, Local Government Education Authorities (LGEAs), and primary schools. Local governments provide money for primary school teachers’ salaries and allowances (indirectly through deduction at the state level as a first charge from Local government share of the funds from FAAC).

However, because of the confusing roles and responsibilities of the three levels of government, the decentralized nature of spending on education, and low management capacity, as well as complex reporting arrangements, there is a dearth of accurate data on public and private spending that imposes severe limitations on both individual and organizational capacity for policy making, planning, and management. There is also some evidence that actual expenditures are significantly below budgeted amounts. In the case of Bauchi, for example, there are huge differences in amounts approved versus amounts released. 3 The recent (2015) downturn of the economy, due to the combined effects of political uncertainty as well as supply disruptions of petroleum products, is also likely to impact all government spending including that on education. Although as reported by the National Bureau of Statistics (NBS), Nigeria has exited its worst economic recession in more than two decades notching up growth of 0.55 per cent in the second quarter of 2017, this is yet to have an impact on education funding

3 Based on a review of approved Budget Plan documents from 2009 to 2017. The amount of funds released are a function of factors such as the total funds released to the State government, the approved budget, competing or new priorities of the State, the salary budget, etc.

Executive Summary 6

Recognizing that the information base is very weak for debates on such fundamental issues as the adequacy of funding for education, sources of funding, efficiency and equity of the use of public funds, costs of system expansion and the appropriate mix of public and private (household) expenditures, the Ministry of Education of Bauchi State is using the State Education Account (SEA) to study the flow of funds from sources-to-uses within the education sector.

3 State Education Accounts

State Education Accounts (SEA), a subaccount of National Education Accounts (NEA), were conceptualized and developed to gather data on all – public, private, and donor – spending on education. Bauchi State is one of four states in Nigeria4 where the State level accounts have been developed. This is the fourth round of SEA in Bauchi.5 Using the National Education Accounts methodology6, SEA like the NEA measure the financial pulse of an education system, answering four key questions:

• Who is financing education?

• How much do they spend?

• How are funds distributed across different education providers, levels and activities?

• Who benefits from or receives the services?

Conducted at the state level, SEA provides a snapshot of education spending in the state and organizes, tabulates, and presents information on education spending using a standard set of tables, and a user-friendly format. SEA gather information on all spending from public, private and donor sources, and provide a snap-shot of all expenditures on education in the state or country. While not an auditing tool, SEA provides real time information on the flow of funds that can be used for evidence-based decision making. It provides information to policy-makers that enable them to discern system-wide inequities and identify areas that require changes in policy. In addition, the use of a standard classification of expenditures allows for data from SEAs to be comparable between and within states and regions within a country.

As a first step, as in the NEA, the SEA lays down clear, unambiguous definitions of the boundary conditions for an expenditure item to be classified as an educational expense. To be included in the SEA, all expenditures by definition have to be within the boundaries of the

4 Four states are Kano, Zamfara, Bauchi and Sokoto 5 The SEA was conducted as follows: SEA I- 2008/09; SEA II-2010/11; SEA III- 2013/14 and 2014/15 6 National Education Accounts were developed as a tool for improved financial information within the context of comprehensive education reform programs. A transparent method for collecting and analyzing data on actual allocations and expenditures of resources and linking those expenditures and allocation to system reforms, National Education Accounts (NEA) provide a framework for measuring total -- public, private, and donor – national education expenditures. The NEAs provide a picture of the flows and uses of funds throughout the education system and identify roles played by Federal, State and Local government, international and indigenous donors, private contributors and households in financing education. Conducted over several years, the NEA reports can provide the data needed to help decision-makers determine, based on “evidence,” whether their country education funds are being spent efficiently, effectively, and equitably. They can also enable policy makers to understand the correspondence between spending patterns and education system outcomes of countries with similar socio-economic backgrounds when setting performance objectives and benchmarks. Such temporal data is useful for monitoring and evaluation purposes and for making financial projections of a country’s education financing needs as well as making comparisons within and between countries. (More detail on the NEA methodology can be found in the Bauchi SEA report 2015/16 and 2016/17)

Executive Summary 7

State. By doing so, SEA goes beyond the traditional classification of expenditures by institutions to a more functional classification of expenditure by type of expenditure. In the second step, SEA identifies the sources that finance education expenditures, the intermediaries (financing agents) that allocate the funds amongst different providers, and the providers of education, so as to avoid double-counting of funds. At the same time, SEA distinguishes between different providers of education and focus on the mechanisms used to transfer funds to these providers. Finally, and most importantly, the SEA framework provides a technical basis for analyzing the financial implications that education sector reforms would have on service providers and financiers of education alike. In short, SEA provides an effective tool that can be used to review the outcomes of education policies and to suggest the impact of potential policies on performance of an education system.

Implementation of SEA IV – Public Sector Subaccount – in Bauchi State The current round of SEA (SEA IV) was a subaccount that focused on the public sector expenditures on education in Bauchi State for the school years (SY) 2015/16 and 2016/17.

Data were collected, as appropriate, at the Federal, State and Local levels. To encourage ownership of the data and to build in-state capacity for the conduct of future SEAs, data was collected by members of the SEA IV State Working Group (SWG) under guidance of the Bauchi State Education Steering Committee.7 These stakeholders (BESC) were engaged at various points throughout the SEA project activities to help identify data sources, to facilitate data collection and review data collected, as well as to use SEA results to develop or implement education policies. The SWG, selected by the BESC at the recommendation of the TA team. was responsible for most of the detailed technical work. It was comprised of officials who deal with education and public finance from agencies such as the Ministries of Education and Finance, the Ministry for Local Government Affairs, the Ministry of Health, SUBEB, etc.(see list under authors of this report).

The SWG and the Steering Committee set the boundaries and definitions for the collection of data and identified the sources of data. The data for SEA IV – the public sector subaccount – come from secondary sources. As this is a public sector subaccount, these sources include government records from relevant agencies at all three levels– Federal, State and Local – of Government. Each is described in turn.

(i) At the Federal level, it included agencies such as the Federal Ministry of Finance, Federal Ministry of Education, Tertiary Education Trust Fund (TETfund), and Universal Basic Education Commission (UBEC).

(ii) At the State level the agencies included are the state ministries of Finance (SMOF), Education (SMOBSE), Ministry of Health (SMOH), and all parastatals that provide education related services. These parastatals can be broadly grouped into those associated with the SMOBSE like SUBEB, Teachers Service Commission, State Agency for Mass Education, etc., and those associated with

SMOH.

(iii) At the Local government level, the data includes expenditures on education by the Local government councils and the Local education authorities.

7 The Initiative project has put together a Bauchi State Education Steering Committee (BESC) comprised primarily of official policy makers and other high-level stakeholders such as academics and civil society representatives to guide the project as a whole. The SEA team has adopted the same steering committee as they have a full understanding of the context and can facilitate the SEA process as well as help make connections between the SEA and various activities of The Initiative project.

Executive Summary 8

Based on a review of the budget and plan documents for the various ministries and departments, separate survey instruments were developed for each source of data. A total of 37 instruments were developed: 10 for Federal agencies, 25 for State, 1 for LGCs, 1 for LGEAs. The SWG, with the assistance of the TAT, developed the instruments. Data was collected from 79 public sector agencies and organizations including 10 Federal agencies, 27 State, 20 LGAs, and 20 LGEAs, by the 21 members of the SWG and the TAT. Members of the TAT trained the SWG members in data collection methodology to ensure consistency in the collection of data and supported them throughout the process.

Unlike most SEAs that collect data for only one year and provide a snap shot of that period, it was agreed with the SWG and the BSC that the SEA IV public sector subaccount would be conducted for two school years 2015/16 and 2016/17. These years were selected as these were the latest period of time for which most complete data are available and they spanned a time period before and after the onset of recession in Nigeria. Selecting a time period after the onset of recession would provide a snapshot of the impact, if any, of the recession on education spending in the State. This time period spans three financial years (FY): January to December 2015, January to December 2016 and January to December 2017. To make all expenditure data consistent with the school year, expenditure data was collected from FY 2015, 2016, and FY 2017, and then combined together based on a proportional allocation – one third from FY 2015 and two-thirds from FY 2016 for the academic year 2015/16 and one-third from FY 2016 and two-thirds from FY 2017 for the academic year 2016/17 and presented as such in this report. Apart from the data collected through a survey of the government agencies, the SEA also used information from the publicly available 2015 to 2017 budget data (audited actual expenditures) obtained from Ministry of Budget and Economic Planning records as well as school census and the school statistics and records as maintained by the State-based Education Management Information Systems.

The different sources of data used permitted triangulation and cross-verification of expenditure and receipt data recorded by the spending and receiving institutions. Several cross flows in the education system were verified and triangulated. In instances where discrepancies were discovered, precedence was given to ‘Final Accounts’ of public institutions, including Ministry of Education and SUBEB, to ascertain the government’s expenditures on education. All data collected from all sources for the development of SEA was entered into a relational database specifically developed for the SEA. This allowed for the generation of the standard set of matrices and for data to be analyzed with desired degrees of detail or aggregation.

4 Financing of Education and Flow of Funds in Bauchi State

4.1 Bauchi State Effort for Education

Data from the State Education Accounts completed for Bauchi indicate a significant commitment from the public sector in educating children. In 2015/16, the total expenditure by the public sector on formal and non-formal education in Bauchi State was 40 billion Naira (N=) (approx. $203.6 million),8 while that for 2016/17 was about 1.4 percent less, at 39.5 billion Naira (N=) (approx. $130.4 million;9 please note that while the difference in expenditures incurred for education between 2015/16 and 2016/17 was not as large when

8 Exchange rate in January 2016: USD ($) 1 = NGN (N=) 197. Source: Central Bank of Nigeria 9 Exchange rate in January 2017: USD ($) 1 = NGN (N=) 303. Source: Central Bank of Nigeria

Executive Summary 9 reported in Naira, the difference after conversion into USD appears to be larger due to the difference in Naira to USD exchange rates for the two years). The funds include the total public financing efforts for human, material, and equipment resources in public preprimary, primary, secondary and tertiary educational institutions as well as for non-formal education programs.

Table 4.0: Bauchi State Expenditure on Education, 2015/16 and 2016/17 School Years

Education Expenditure Information 2015/16 2016/17

Total Expenditure by public sector (Federal, State and Local government) on Education – formal and nonformal - in Bauchi State N=40,109,756,574 N=39,540,901,363

Total Expenditure by public sector (Federal, State and Local government) on formal education in Bauchi State N=39,750,491,884 N=38,839,775,016

Total Expenditure by Bauchi State Government in SY (education and non-education)10 N=132,833,144,439 N=143,734,833,337

Total Expenditure on Education by Bauchi State Government N=14,080,362,747 N=16,747,686,628

State Expenditure for Education as percentage of total State expenditures 11% 12%

Total expenditure on education in State by State (% of total public expenditure) 35% 43%

Population of Bauchi State (projections 2016 and 2017, National Population Commission) 11 6,537,314 6,763,474

Per capita public sector expenditure on education N=6,081 N=5,743

Number of students enrolled preprimary to tertiary (public, formal education) 12 1,116,212 1,220,558

Average public sector expenditure per student (formal education only) N=35,197 N=31,821 Source: Bauchi SEA 2015/16 & 2016/17; State Budgets 2015, 2016 & 2017; Nigeria National Bureau of Statistics, 2005, 2006; National Population Commission 2015

As reflected in Table 4.0, approximately 98 percent of the total public sector spending on education in the State of Bauchi is on formal education programs with only a small proportion (around 2 percent) going to non-formal programs. The effort for education corresponds to nearly N=6,135 per capita expenditure (approximately $32) overall and N=6,081 for public sector expenditure on education only. In terms of number of students, this effort represents N=35,934 per student (approximately $182) overall and N=35,197 per student in formal school (approximately $179). (Table 4.0).

In 2016/17, the total expenditure on education in Bauchi State was 39.5 billion Naira (N=) (approx. $130,4 million); 13 with a little over 38 billion being spent for formal education. As for 2015/16, approximately 2 percent of the total expenditure was for non-formal education, with 98 percent going towards provision of education in the formal setting. The per capita

10 Extrapolation for 2015/16 based on numbers from Approved Recurrent and Capital Expenditures for Years 2015 and 2016; similarly, 2016 and 2017 budget for SY 2016/17 11 Population projection as of 2016 and 2017 (National Population Commission) for SY 2015/16 and 2016/17 respectively 12 Public sector enrollment figures from the state EMIS system as obtained by the Bauchi State Working Group 13 Exchange rate in January 2017: USD ($) 1 = NGN (N=) 303. Source: Central Bank of Nigeria

Executive Summary 10 expenditure by the public sector was ₦5,846 (approximately $19) overall and overall and N= 5,743 for public sector expenditure on education only. In terms of number of students in the formal school system, this effort represents an average public sector expenditure of ₦32,39614 per student (approximately $107) overall and ₦31,821 in formal school only (approximately $105) (Table 4.0).

4.2 Sources of Financing for Education

In 2015/16 school year, the total financing for education on formal and non-formal education in the public sector in Bauchi State was a little over N=40.1 billion. The funding decreased to N=39.5 billion in 2016/17, a decrease of about 1.4 percent. These funds were comprised of financing from the Federal, State and Local government (99 percent), and programmatic funding15 from donor agencies (rest of the world) provided to the State government (0.9 percent), in 2015/16 school year. Similarly, in 2016/17, of the total expenditure of a little over N=39.5 billion on formal and non-formal education by the public sector in Bauchi State, the government’s own resources made up 99.8 percent while a small amount (0.2 percent) came from the rest of the world as a part of contribution for joint programs. (Table 4.1;

Figure 4.1).

Table 4.1: Sources of Financing – all sectors, 2015/16 and 2016/17 School Years Financing Sources Total (in Naira)

2015/16 2016/17

Public Funds 39,750,491,884 39,514,725,024

Private Funds N/A N/A

Rest of World (Donor) to State MOE 359,264,690 26,176,339

Grand Total 40,109,756,574 39,540,901,363 Source: Bauchi SEA 2015/16 and 2016/17

Figure 4.1: Sources of Financing for Education, 2015/16 and 2016/17 School Years

Source: Bauchi SEA 2015/16; Bauchi SEA 2016/17

14 This number includes the total (non-annualized) capital expenditures incurred by the state during this period.

For better comparisons in later years, this would need to be annualized and the depreciation for capital investments included in the calculation.

15 See footnote above.

Executive Summary 11

4.2.1 Sources of Financing by Type

The public sector financing of education is comprised of the expenditures incurred by all three levels of the government – Federal, State and Local. In addition, as explained above, a small amount of funds provided by the donor agencies (rest of the world) as support to the State government for specific programs managed by the State government have been included. The contribution of the various sources of financing by subcategory is presented in Table 4.2 and Figure 4.2 below.

Table 4.2: Sources of Financing: all sectors, 2015/16 and 2016/17 School Years Financing Sources Financing Sources Total (in N=)

2015/16 2016/17 Public Funds Federal Govt 7,228,482,996 8,055,146,769 State Govt 14,080,362,747 16,747,686,628 Local Govt 18,441,646,140 14,711,891,626 Public Funds Total 39,744,987,627 39,489,646,311 Private Funds Household N/A N/A Private Funds Total Rest of World International Multilateral and Bilateral

(Support to the Ministry of education) 359,264,690 26,176,339

Rest of World Total 359,264,690 26,176,339 Grand Total 40,109,756,574 39,540,901,363

Figure 4.2: Sources of Financing: distribution for all sectors, 2015/16 and 2016/17 School Years

Source: Bauchi SEA 2015/16; Source: Bauchi SEA 2016/17

The State and Local governments together accounted for 83 percent of the total financing for education in Bauchi in 2015/16 and 79% in 2016/17. The Local governments, using their FAAC allocation, were the main source of financing for education in the public sector in Bauchi State in 2015/16, accounting for about 46 percent of the total financing, but came in second place in 2016/17 accounting for about 37 percent, of total public expenditure on formal and non-formal education. The State government contributed 35 percent in 2015/16 and 42 percent in 2016/17, while the contribution of the Federal government was almost

Executive Summary 12 constant at 18 percent of total expenditures for education in the State in 2015/16 and 20 percent in 2016/1716 (Table 4.2; Figure 4.2).

International development partners contributed 0.9 and 0.1 percent in 2015/16 and 2016/17, respectively as a contribution to the State government for implementation of joint programs.

(Due to the focus on the public sector expenditures, direct spending in the State by international partners has not been captured as part of this subaccount).

4.3 Flow of Funds from Sources of Financing to Financing Agents

Financing agents are intermediaries with programmatic responsibilities and manage or organize services. They receive funds from financing sources and use them to pay for education-related services. Like Sources of Financing, the Financing Agents can also be grouped into three broad groups: (i) public sector, such as Federal Ministry of Education, UBEC at the Federal level, SUBEB, State Ministry of Education, Scholarship Board, etc., at the State level and Local governments at the Local level; (ii) private sector, such as households, denominational or private networks, and (iii) rest of the world, such as international NGOs and donor agencies. Each of these groups is comprised of several intermediaries or financing agents. In this SEA subaccount, only public sector financing agents are discussed.

Overall, the public sector at each level – Federal, State and Local – managed its own funds for both 2015/16 and 2016/17 school years. In addition, the small amount of financing provided by the multi-lateral and bilateral donor agencies (Rest of the world) for joint projects was also managed by the public sector at the State level. The distribution of funds managed by the three levels of the government followed their contribution as financing sources (see figures 4.3). The State and Local governments alternated as the entity managing the largest amount of funds. Between them, the State and Local governments managed about 82 of the total public sector expenditure on education in the State. It must be noted here that while the Local government on paper the Local government manages its own funds, in reality over 90 percent of its financing for education is deducted at sources and managed and disbursed by SUBEB, at the State level.

Table 4.3: Flow of Funds from Sources of Financing to Financing Agents, 2015/16 and 2016/17

School Years

Financing Agents

Sources of Financing

Public Funds (Federal, State and Local)

Private Funds

Rest of the World (Donor) (direct contribution to State govt) Total Percent

2015/16 - Flow of funds Federal Government

7,139,507,186 - 7,139,507,186 17.80

State Government 14,169,338,557 - 359,199,690 14,528,538,247 36.22 Local Government* 18,441,646,140 - 65,000 18,441,711,140 45.98 Total 39,750,491,884 359,264,690 40,109,756,574 100.00 2016/17 - Flow of funds Federal Government

6,940,982,053 - 6,940,982,053 17.55

16 The financing by Local governments includes the share of the Local governments in the funds from FAAC and mandatory expenditure on salaries for primary school teachers

Executive Summary 13

Financing Agents

Sources of Financing

Public Funds (Federal, State and Local)

Private Funds

Rest of the World (Donor) (direct contribution to State govt) Total Percent

State Government 17,861,851,345 - 26,176,339 17,888,027,684 45.24 Local Government* 14,711,891,626 - - 14,711,891,626 37.21 Total 39,514,725,024 26,176,339 39,540,901,363 100.00 Note: The largest single expenditure of Local Government is for teacher salaries, paid through the SUBEB.

However, since the decision to pay the salaries is made by the Local government they have been included as both the financing source and the financing agent.

Source: Bauchi SEA 2015/16 and 2016/17

Figure 4.3: Comparison of Distribution of Resources between Financing Sources and

Financing Agents – Public Sector, 2015/16 and 2016/17 School Year

Source: Bauchi SEA 2015/16; Bauchi SEA 2016/17

4.4 Flow of Funds from Financing Agents to Education Providers

The State Education Accounts track the flow of funds from sources to uses, via financing agents and providers. Providers of education can be looked at in one of several ways – by ownership – public and privately-owned institutions; by level of education – preprimary to tertiary, including formal and non-formal schools and overall administration of the system;

by location – urban, rural or statewide; and by type of school – secular or integrated Islamiyya schools. Given that the focus of this subaccount is the public sector, only providers supported by public financing have been included in this analysis.

4.4.1 Financing Agent to Education Providers by Type and Level of Education

Of the approximately 40 billion Naira expended on provision of education in 2015/16 and 39 billion in 2016/17, in both school years approximately 98 percent of the financing was used in the provision of formal education at the basic, secondary and tertiary levels, with only a small proportion going towards nonformal education (including basic literacy, IQTE and mass education programs). In 2015/16 while approximately 39 billion Naira was spent on formal education, only about 701 million were spent on provision of non-formal education (2 percent). Similarly, in 2016/17, of the total amount of 39.5 billion, 38.8 billion (98 percent) was spent on formal education, while 701 million (2 percent) was for non-formal education.

(See Table 4.4)

Executive Summary 14

Table 4.4: Distribution of Resources from Financing Agents to Education Providers by Level of

Education, 2015/16 and 2016/17 School Years - overall Type s

Levels Levels Detailed

Amount (in N=) % within

Percen t

Amount (in N=) % Percent

2015/16 2016/17 Formal Basic Nomadic 240,297,333 1.24 0.60 233,204,089 1.42 0.59

Primary 65,418,665 0.34 0.16 102,235,498 0.62 0.26 Basic 19,075,295,214.23 98.42 47.56 16,081,454,086.14 97.96 40.67

Total Basic 19,381,011,212.08 100 48.32 16,416,893,673.20 100.00 41.52 Snr. Secondary 134,149,685 1.75 0.33 395,337,855 4.24 1.00 Secondary 7,510,092,862 98.25 18.72 8,938,036,893 95.76 22.60 Total Secondary 7,644,242,546 100 19.06 9,333,374,748 100 23.60 Special Education

Gifted and Talented 408,376,865 100 1.02 341,534,470 100 0.86

Total Special Education 408,376,865 100 1.02 341,534,470 100 0.86 Tertiary Tertiary 11,853,494,779 100 29.55 12,747,972,125 100 32.24 Total Tertiary 11,853,494,779 100 29.55 12,747,972,125 100 32.24

Total Formal 39,287,125,402.18 97.95 38,839,775,016.24 98.23 Non-formal

Basic Literacy

317,196,218 38.56 0.79 270,810,108 38.63 0.68

IQTE 3,250,450 0.40 0.01 75,000 0.01 0.00

Mass Education

All levels 502,184,504 61.05 1.25 430,241,239 61.36 1.09

Total Non-formal 822,631,171 100 2.05 701,126,347 100 1.77

GRAND TOTAL 40,109,756,573.65 100.00 39,540,901,363.11

100.0

Figure 4.4: Distribution of Public Resources to Education Providers by Level of Education, 2015/16 and 2016/17 School Year

Source: Bauchi SEA 2015; Source: Bauchi SEA 2016/17

Executive Summary 15

In both school years, of the total amount spent on formal education, a little less than half (48% and 41% respectively) was spent on the provision of basic education, followed by a third on tertiary education. Basic education in Bauchi includes programs for provision of primary education, junior secondary as well as Nomadic education. A small proportion of the funds are also used to support programs for gifted and talented students. An examination of the data, reveals that while the pattern of spending was the same from year-to-year – the largest proportion of funds were allocated for basic education, followed by tertiary education and then the secondary level – the amount of expenditure varied by school year. In 2016/17 the proportion of spending on basic education went down, while that for secondary and tertiary education increased. Figure 4.4 and Table 4.4 have the details.

4.4.2 Flow of Funds from Education Providers to Uses

Overall, an examination of the structure of the expenditures incurred by the public sector shows that 92 percent of total expenditures on education in the 2015/16 and 89 percent in 2016/17 school years was expended on recurrent costs of providing education and within that most of the expenditure was for recurrent personnel costs. In 2015/16, N=29.4 billion, i.e. 73 percent of total expenditure was on recurrent personnel costs while recurrent running costs amounted to about N=7.6 billion, i.e. about 19 percent. In 2016/17, N=24.99 billion, i.e. 63 percent of total expenditure, was for recurrent personnel costs while recurrent running costs amounted to about N=10 billion (i.e. 25 percent). Expenditures on capital projects amounted to 6 percent of the total in 2015/16 (Table 4.5) and went down slightly in 2016/17. Less than one percent of the total expenditure was for the provision of scholarships in both school years, while the expenditure on maintenance varied from about 1.37 percent in 2015/16 to almost 6 percent in 2016/17 (Table 4.5 and Figures 4.5 and 4.6). These patterns were similar for both formal and non-formal education systems.

Table 4.5: Distribution of Overall Expenditures by Category of Expenditures, 2015/16 and

2016/17 School Years

Expenditure Amount (in Naira) Percent Amount (in Naira) Percent

2015/16 2016/17 Capital Investment 2,398,322,976.46 5.98 2,004,512,666 5.07

Maintenance 540,049,705.49 1.35 2,201,950,660 5.57 Transfer Expenditures (scholarships and grants) 195,317,314.31 0.49 308,082,316 0.78

Recurrent Personnel costs 29,352,613,104.16 73.18 24,993,599,975 63.21

Recurrent Running Costs 7,623,453,473.23 19.01 10,032,755,746 25.37

Grand Total 40,109,756,573.65 100.00 39,540,901,363 100.00

Executive Summary 16

Figure 4.5: Distribution of Expenditures by Category of Expenditure, 2015/16 School Year

Source: Bauchi SEA 2015/16

Figure 4.6: Distribution of Expenditures by Category of Expenditure, 2016/17 School Year

Source: Bauchi SEA 2016/17

The data tell a story of the priorities of the State government and the policies that guide these expenditures. It is necessary to understand the expenditures with reference to the context in which these expenditures occur. The next section presents an analysis of the expenditures incurred by the public sector in the context of the education system in Bauchi State and the ongoing downturn in the economy.

5 Other Findings From SEA IV Data

5.1 Significance of expenditures

Of the public sector financing for education in Bauchi State, in both 2015/16 and 2016/17 school years over 80 percent of the funding was provided by the State and Local governments. The State and Local governments together also managed over 82 of the funds in the State and allocated the funds as per the educational priorities of the State. The first issue was the weight of the contribution of each sector. In other NEA studies, the total

Executive Summary 17 funding in education is compared to Gross Domestic Product (GDP) but because of the lack of GDP data at the state level, in the case of Bauchi State it was agreed, to compare the total education expenditures to the total budgeted levels of the State, including Federal expenditures managed at the State level.

The State of Bauchi expended 11 percent of their total budget on education during 2015/16 and 12 percent in 2016/17. Even when this is combined with the share of the expenditures by the Local governments with Bauchi State, the amount expended reaches only about 24 percent in 2015/16 and 23 percent in 2016/17. Bauchi State has thus not yet reached the UNESCO standard of 26 percent of government expenditure for education (UNESCO, 2006) considered necessary for the provision of adequate quality of education.

5.1.1 Average Expenditure per Pupil

The financing reserved for the various levels of education and category of institutions is used to pay for operating expenditures (payroll, teaching materials, equipment, etc.), and capital expenditures. The total financing and expenditure can be put in relation to the number of pupils in school to get an estimate of the average expenditure per pupil. This calculation makes it possible to compare the levels of expenditure among the different educational levels.

Note that in this SEA public sector subaccount, only the expenditures by the government have been accounted for, the direct out-of-pocket expenditures by households are not included in estimating the average expenditure per pupil by educational level. In addition, as the enrollment figures for non-formal education are not available, only the expenditures incurred for formal education have been used for this estimation.

Given that enrolment data is available only for the various levels of formal education, the average public sector expenditures have been calculated for the formal education only. The average cost per pupil across all levels of formal education in was N=35,197 per pupil 2015/16 and N=31,821 in 2016/17 school year. However, the average expenditure per pupil for the different levels of education was as follows (Table 4.6):

Table 4.6: Average Per Pupil Expenditures by Level of Education, 2015/16 and 2016/17 School Years

School year Level of education 2015/16 2016/17

Basic Education N=19,762 N=15,213

Secondary Education N=84,928 N=95,995

Tertiary Education N=291,470 N=313,464

Overall Average N=35,197 N=31,821

Data shows that in Bauchi State, the average expenditure per pupil in secondary education in Bauchi State was almost four and a half to six times that for basic education while that for tertiary education was about 14 to 20 times more than that basic education in 2015/16 and 2016/17 school years, respectively. (Table 4.6) The higher costs of education from basic to tertiary can be explained by the increasing outlay in instructional materials, boarding schools, and higher personnel costs as the level increases. Added to these is the high cost of scholarships for tertiary students.

It is important to note here that while the absolute amount spent on basic education

Executive Summary 18

(approximately 19 billion Naira in 2015/16 and 16 billion in 2016/17) is close to half of all spending on education in the State, the low average per-pupil-costs are a function of the larger number of students served at this level – there were a total of 1,116,212 students enrolled in school (all levels) in 2015/16 and 1,220,558 enrolled in 2016/17. Of those enrolled in school, 88 percent (980,727 in 2015/16 and 1,079,105 in 2016/17) were enrolled in basic education programs that include primary and junior secondary.

5.2 Teachers

In 2015/16 and 2016/17, on average, the teacher student ratio in Bauchi was 1:50, increasing to 1:60 for a qualified teacher – a proportion much higher the Federal Ministry of education standards of 1:35, indicating very large class sizes. In 2015/16, Bauchi State spent less than 1 percent (about N=373 million), of the total expenditure on provision of education on teacher training and development. In 2016/17, this increased somewhat to N=814 million (or 2.06 percent of the total expenditure). However, based on the data available, it was not possible to disaggregate the expenditures by the type of training offered to the teachers or the grade level of pupils that these teachers were teaching. In a context where a State is attempting to increase access and improve quality a lower pupil-teacher ratio is desirable and an indication of commitment to these (and EFA) goals.

5.3 Access

Data from the Education Management Information System (EMIS) show that, in the 2015/16 school year, Bauchi State had 980,727 students (88 percent of all students in formal schools) in basic education programs. In the 2016/17 school year, this number increased by almost 10 percent to 1,079,105, even though the overall proportions by level remained more or less constant. An examination of data revealed that 6 percent of all students were enrolled in preprimary schools, 68 percent in primary schools, 14 percent in junior secondary, 8 percent in senior secondary schools, while only 4 percent were enrolled in tertiary institutions. The gross enrolment ratio is still low in Bauchi State as only 80 percent of the school-age population is enrolled in primary school as compared to 84 percent nationally. Over the years, the net enrolment rate has improved considerably in Bauchi State, with about 73 percent of the primary school-aged population enrolled as compared to 65 percent nationally.

5.4 Gender Analysis

In the 2015/16 school year, 55 percent of the students enrolled in primary school were male and 45 percent female, however this difference increased steadily with each higher level through tertiary. The number of female students continue to drop until it is a little over half the number of male students at the secondary level and less than half at the tertiary level. An examination of enrollment patterns overall also revealed similar patterns of enrollment for male and female students for 2016/17 school year. The disparity between girls’ and boys’ participation in Bauchi has improved to 0.8 Gender Parity Index (GPI). While this is also lower than the national average, the good news is that there is a trend for improvement and the numbers are slowly climbing towards the national averages.

6 Conclusions

The Bauchi State Education sub-Accounts for 2015/16 and 2016/17 school years have helped

Executive Summary 19 the State officials gain a clearer understanding of the flow of funds within the public sector and the contributions of the three levels of government. The process of preparing the SEA subaccount was very inclusive involving personnel not only from the Bauchi Ministry of Basic and Secondary Education and the State Universal Basic Education Board (SUBEB) but also significant stakeholders. While the government officials are instinctively aware of the information, just the fact of having it in one place is helpful for policy analysis and decision making. In addition, the fact that the SEA was conducted by officials from the State government has built capacity of these individuals in the application of the methodology for future use.

The SEA revealed that the public sector – Federal, State and Local – spent approximately 40 billion and 39 billion Naira respectively in 2015/16 and 2016/17 school years for the provision of formal and non-formal education in Bauchi. Between them, the State and Local governments are responsible for approximately 80 percent of the expenditures incurred by the public sector on education in the State, with the Federal government spending the rest (18 percent). The Bauchi State government expended 11 percent of their total budget on education during School Year 2015/16 and 12 percent in 2016/17, a reduction from the 17 percent in 2008/09 school year (the first year an SEA was conducted in Bauchi State), possibly a function of the recent recession. Together with Local government expenditures, this amounts to about this accounts for approximately 24 percent of the total State budget.

While still not at the UNESCO recommended 26% of government budget for education, the level of financing demonstrates a commitment from the Bauchi State government to educating children.

While 98 percent of all funds in both years were dedicated to provision of formal education, a small amount was also spent on the provision of non-formal education for those not in school.

In 2015/16, about 48 percent of all funding was spent on provision of basic education, 19 percent on secondary education, 30 percent allocated for tertiary education, 1 percent for special education and 2 percent for non-formal mass education. In 2016/17, about 42 percent of all funding was spent on basic education, 24 percent on secondary education, 32 percent for tertiary education, 0.9 percent is for special education and 2 percent for mass education. .

Nigeria has committed to Education For All (EFA) to ensure that by 2015 all children have access to free, quality primary education. This goal has not been met; however, the state is still committed to attaining the EFA goals. In Bauchi State, the disparity between enrollment share and education expenditure share – with a little over 40 percent of total education expenditure incurred for over 70 percent of students enrolled at the basic level. and about 30 percent of expenditure incurred for only 3 percent of students – may be a roadblock to attaining the state’s goals. This suggests that there is a need to re-examine the expenditure allocations and, if necessary, to readjust them to enable the state to meet its EFA goals.

The average public sector expenditure per student in school was N=35,934 in 2015/16 and N= 32,396 in 2016/17, however this varied by level (ranging from 19,000 Naira for basic education to 291,000 Naira for tertiary level).