IMPACT OF GOVERNMENT INTERVENTION FUNDS ON EDUCATION SECTOR GROWTH IN NIGERIA

Abstract

This study examined the impact of government intervention funds on the growth of the education sector in Nigeria, addressing the critical issue of how effective these funds have been in enhancing the sector's contribution to the nation's GDP. Despite substantial government allocations to education, the sector’s growth has been inconsistent, raising concerns about the effectiveness of these interventions. The main objective of the study was to evaluate the influence of three major government funds: the Petroleum Technology Development Fund (PTDF), Universal Basic Education Commission (UBEC) Intervention Fund, and Tertiary Education Trust Fund (TETF) on the education sector’s economic performance. The study utilized a Fully Modified Ordinary Least Squares (FMOLS) regression model to analyse time series data, assessing the relationship between these intervention funds and the education sector's contribution to GDP. The findings revealed that PTDF had a positive and significant impact on the sector's growth, indicating that investments in science and technology education within the oil and gas sector effectively contributed to broader economic benefits. UBEC also showed a positive and significant effect, emphasizing the critical role of basic education funding in driving overall sectoral growth. However, TETF exhibited a significant but negative impact, suggesting inefficiencies in fund utilization and misalignment with national economic needs. Based on these findings, the study recommended that the Federal Ministry of Education and PTDF should broaden the scope of PTDF funding to include more diverse technological disciplines. UBEC was advised to improve resource distribution, particularly in underserved areas, while TETF, in collaboration with the National Universities Commission (NUC), should reevaluate and realign its funding strategies to better support education sector growth. These recommendations aimed to optimize the impact of government intervention funds on the education sector, ensuring more effective contributions to Nigeria’s development.