Being concluding part of the text of a lecture delivered by Dr. (Mrs.) Sarah Omotunde Alade, Deputy Governor (Economic Policy)Central Bank of Nigeria (CBN) at Bowen University, Iwo, recently.(The second part was published on Friday, October 14, 2011.)Country Comparison of Spending on EducationA CLEAR way to glean at the choices made by countries in the education of their future leaders is to analyse the budget allocations or the proportion of the total expenditure that goes to education. This is because the quality of education critically depends on the financial resources that are made available and judiciously utilised for the purpose for which it is meant, namely; the procurement of needed equipment and personnel.A comparative analysis of the expenditure on education in 14 countries (including Nigeria) at various levels of development between 2006 and 2009 revealed that countries such as Sweden, Botswana, Moldova, France, South Africa and Canada spent on average between 5.1 to 8.4 per cent of their GDP on education. In addition, other countries such as Mexico, Italy, Malaysia, Korea Republic and Egypt spent between 3.8 to 4.8 per cent while Nigeria spent only 2.1 per cent.Analysis of the expenditure on education in nominal terms by the Federal and state governments showed an upward trend in the period 1999-2010, increasing from N30.57billion and N35.84 billion in 1999 to N234.84 and N241.3 billion in 2010, respectively. As a percentage of the total budget of the Federal Government, expenditure on education in the national budget averaged 6.3 per cent during the period 1999-2010. Allocation to education as a percentage of total expenditure by state governments rose from 6.8 per cent to a peak of 12 per cent in 2005 and was 8.7 per cent in 2010.A major challenge facing Nigeria's higher education is funding. A large percentage of higher education in Nigeria is supported by government funds. Public funding to support improvement in higher education, however, has not been adequate. This has also affected the implementation of new programmes in the universities. Funds are not sufficiently available for curriculum innovation, adequate equipment in the laboratories and procurement of current journals. It was in this regard that UNESCO recommended that 26% of the total budget of a nation should be allocated to education.Comprehensive ReformsIn addition to these issues, there is the need for encompassing reform of the education sector to make it dynamic and future oriented. Efforts should be devoted to developing a system that would inspire patriotism in the students as they seek to become future leaders. Emphasis should also be placed on inculcating vocational education to solve the problem of skills mismatch. This could be done by including a work based education system in our education policy, where students combine formal education with work-based training as it is the practice in some countries. This will make transition from school to work place smooth, and would solve the problem of unemployable graduates, which is the hallmark of today's education system. In order to leverage on the opportunities offered by globalisation, there is the need to build international content into instruction across the education curriculum, while there should be emphasis on the learning of foreign languages. This is because in today's global circle, capital, trade, workers and the production of goods and services flow easily across borders.Problem-Solving EducationThe nature of education in these institutions should be one that makes the graduates problem solvers. The ways of meeting man's basic needs are constantly changing, requiring the challenge of continually balancing issues such as lower costs, convenience and efficiency. This demands out-of-the-box thinking, which expectedly, should be spearheaded by higher institutions, where the needed skills and dynamic knowledge is appropriately impacted.There is also the need to apply more life case analysis in teaching that brings the real work problems to life as well as develop practical sessions to sharpen the critical creative thought process of students. This means the choice of entrepreneurial studies is really not a choice but a necessity because many may find themselves self-employed after graduation.Broad Based CurriculaNigerian universities should develop broad'based, diverse and career-focused curricula, which link school-based learning with work opportunities. This will include basic and applied academic competencies and skills, which will help in developing physical, mental, and the overall well-being of the youth. Universities being the melting point for different classes of youth should ensure the development of skills on how to relate in the work place and society.Partnership and CollaborationThe universities must foster new partnerships and collaboration to increase the potential for mutual learning, as well as the possibilities of creating new models to solve evolving problems. This would entail discovering the best that had been done elsewhere and adapting local peculiarities for their enhancement. In particular, there is need to create a lively synergy between the academia, business, non-governmental organizations, government agencies and communities in order to continuously harness ideas and resources.Leadership and Initiatives of University AuthoritiesLeadership in the universities must demonstrate extra creativity to encourage future leaders to acquire new mental models that are based on a clear vision and the willingness to change. Universities must, therefore, not only build on the achievement of the past but continue to adapt to evolving roles. The world community has been transformed to a global single village with dynamic challenges that cut across culture, languages and societies due to globalisation and other developments in information communications technology. There is, therefore, the need to create a more highly skilled and globally competitive workforce that can optimize opportunities or even create some in the global arena.Character Training/ Parental InvolvementThe school has the fundamental role of shaping youth character and virtues, which will help them to make positive contributions to the nation. Character training must go hand in hand with academic training. Graduates must be able to experience and learn from the school good values that are central to human development. In addition, there is the need to ensure that youth develop cutting-edge communication skills, to enhance their ability to work in cross-cultural environments.Parents and guardians play vital roles in educating and developing today's youth for tomorrow's leadership. Good education starts at home since parents are the first point of contact for children, their involvement is critical to building good leadership attributes. In addition, parents should be good role models by monitoring and mentoring and setting good examples.To ensure effective education for future leaders, parents need to create time to be with their children and raise them to be better citizens. Parents and all stakeholders must recognise that poor education (from home and the institutions) breeds indiscipline and indiscipline is the malignant cancer of the Nigerian society today.Proper Focus by StudentsStudents must be better informed and focused on their career goals rather than focus on what subject the university offers them. Graduates must be able to create their jobs and be passionate about what they do. In this regard, students themselves must be determined, disciplined and hardworking. These qualities will help them to achieve their goals and become respected future leaders. Nigerian youth should inculcate in themselves the following attributes: ability to influence others positively; motivate others and seek out role models who have been exemplary leaders. They must be able to articulate their personal values and be aware of how their personal actions impact on the larger community.The CBN Intervention in EducationThe recognition of the importance of training future leaders has led the Central Bank of Nigeria (CBN) to intervene in the education sector. Generally, the central bank in any economy plays the traditional role of conducting monetary policy through the use of appropriate instruments, which is expected to influence the levels of monetary and credit aggregates and achieve moderate or low inflation, economic growth and balance of payments viability. The CBN has beside its traditional role, been engaged in developmental activities in order to accelerate the pace of economic development and create a congenial environment necessary for the attainment of its objectives. As part of its developmental role and efforts to boost real sector activities, the CBN has undertaken various initiatives and critical interventions aimed at increasing output, generating employment, diversifying the revenue base of the economy, increasing foreign exchange earnings, and promoting value chain activities in the real sector.In response to the general concern about the decaying infrastructure in the universities, the Central Bank provided funds to improve key infrastructure in Nigerian Universities under the Nigerian Universities Capacity Building Programme. The projects covered under the program included the construction of administrative blocks, lecture halls, laboratories, health centers, adequate housing for teachers, and provision of IT and V-sat equipment. So far, about 24 universities have benefited from the program. This is to supplement government effort in this area and to help improve the learning environment.The need to provide a favourable environment for entrepreneurship growth in Nigeria, reduce poverty and unemployment motivated the CBN to promote Entrepreneurship Development Centres (EDCs) in the six geopolitical zones of the country. The CBN-supported EDCs are: to develop entrepreneurship spirit in Nigerians and to provide insight into the tools, techniques and framework for managing business enterprise, including production, marketing, personnel and finance; to develop skills of would-be-entrepreneurs to successfully start, expand, diversify and manage business enterprises as well as link them with financial institutions for accessing start-up capital, especially from the microfinance banks; and to generate employment opportunities for Nigerians in pursuance of the provisions of the National Economic Empowerment and Development Strategy (NEEDS) and recently, Vision (2020).Prior to this initiative, the Bank had launched the Microfinance Policy, Regulatory and Supervisory Framework for Nigeria, by which token, financial services in favour of micro, small and medium entrepreneurs would be expected to improve appreciably. Financial services are however, only good if they were provided for economically active customers. Untrained customers would create room for poor transactions and will in turn affect the success, profitability and sustainability of the financial institutions that provide the services and the EDCs are put in place to address such shortcoming. As at March 2011, a total of 28, 655 were trained by the three pilot EDCs and a total of 2, 883 jobs were created/ expanded.In addition, in line with Nigeria's goal to become one of the top twenty economies of the world by the year 2020, the CBN initiated a strategy known as the Financial Systems Strategy 2020 (FSSS 2020) to implement a financial system that would transform Nigeria into an international financial centre and provide the safest and the fastest growing financial system among emerging economies. The acute shortage of the quality and quantity of manpower has however, been recorgnised as a major constraint in trying to realise the goals and objectives of the FSS 2020. Consequently, the CBN in recognition of its developmental role and in exercise of its oversight function over the financial services industry undertook to intervene in the post graduate programmes of three selected Federal Universities (Ahmadu Bello University, University of Ibadan, and University of Nigeria Nsukka). The idea is to assist the three universities to evolve as centres of excellence to kick-start the training of required personnel to manage the reforms in the financial sector.Concluding RemarksThe challenges that arise as a result of the changing global environment cannot be avoided. They must therefore be anticipated and surmounted. This requires that future leaders are well prepared, adequately informed, visionary and skilful. Undoubtedly, if training is provided to enable the youth to solve today's problems, it is an invitation to, and the entrenchment of mediocrity. In order to provide leadership that will be outstanding, today's youth must be equipped with the knowledge, skills and perspectives that are required to be creative. There is therefore, a need for a paradigm shift. The need is clear and the choice is glaring. All stakeholders (government, politicians, university authorities, business communities, parents and the students) have undeniable roles to play in ensuring that Nigeria's future leaders are not amateurish in the challenging global environment. The clear choice is to make funding a priority, to be resourceful and creative and make international competitiveness the watchword.I will leave you with this quote by Benjamin Franklin: 'If a man empties his purse into his head, no man can take it away from him. An investment in knowledge always pays the best interest.
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