Endowment as an Alternate Funding for Nigerian Universities: A Study of Veritas University, Abuja Nigeria

Abstract

Nigerian universities face significant funding challenges which have led to poor and near absence of basic University infrastructure and facilities. The result is continual decline in quality of life of university staff, declining quality of teaching and research, and in many cases poor quality of graduates. The issue of inadequate funding has also resulted in recurring strikes and disruptions in academic activities. Several strategies have been suggested for solving the funding conundrum in Nigerian Universities, including the establishment the Tertiary Education Trust Fund (TETFUND), albeit without success. One viable, sustainable and permanent solution proposed by this study is the establishment of university endowment funds. Endowment funds are aggregations of assets invested to support specific objectives or causes, ensuring stability and predictability for the recipients. In the case of Nigeria, endowments can be set up by individual Universities and managed by external fund managers (for example, Licensed Pension Fund Administrators, Hedge Funds Manager, Asset Managers, etc.) thus, creating a reliable platform that allows Institutions, Corporate Organizations, Religious Organizations and high net-worth individuals to contribute to these funds. Among the many benefits of endowments are stability and predictability which ensures planning and budgeting by universities. Also, attaining autonomy and self-sufficiency by universities can only be guaranteed by endowments. In addition, long-term sustainability, and enhanced research and innovation are also benefits of endowments. Examples of endowments are provided from North America and Europe, while the Nigerian cases of success are picked from the First Bank Endowment Programme (established since 1994), and the Yaba College of Technology N50 Billion Endowment Fund (launched in 2022). The study concludes that endowments is a funding initiative that offers a promising alternative funding mechanism for Nigerian Universities with the potential to transform Nigeria’s education sector.