Factors Affecting Financial Sustainability of Private Universities in Nigeria. A Case Study of Covenant University Otta Ogun State

Chapter One of Factors Affecting Financial Sustainability of Private Universities in Nigeria. A Case Study of Covenant University Otta Ogun State

INTRODUCTION

BACKGROUND OF THE STUDY

The university system is view as the citadel of learning where the nation leaders are trained. They play significant role in the development of the nation as the university provides opportunities for the acquisition of knowledge and the development of manpower to manage the various sectors of the economy. Therefore, the university is expected to meet the fundamental objective of education in the provision of quality education and graduates which can stand test in any part of the world. Private universities which are established and owned by individuals are faced with the challenge of finance to provide the needed infrastructure and maintain the minimum requirement of quality university education. The need for quality and sustainability of the university system cannot be compromised which is linked with the ability to consistently achieve the desired goals for higher education institutions. Financial sustainability is associated with the fact that the university shall achieve and remain financially independent under the finance theory .Financial sustainability is defined as the capacity to maintain a balance of assets and liabilities in an ever changing internal and external environment so as to achieve solvency and profitable long-term investment at an   acceptable level of risk” (Ajayi, I.A. and Ekundayo, H.T., 2008). The study seeks to appraise the factors affecting financial sustainability of private universities in Nigeria. A case study of covenant university Otta Ogun state.

STATEMENT   OF   THE PROBLEM

Private universities are established and managed by private individuals as against government owned universities which are funded by the government. Currently, many private universities are faced with challenges of increasing cost of providing the needed infrastructures, manpower and facilities to meet the requirement of providing quality education in the country. Hence, attaining financial sustainability constitutes a crucial concern for many private universities. The need for quality and sustainability of the university system cannot be compromised which is linked with the ability to consistently achieve the desired goals for higher education institutions. Financial sustainability is associated with the fact that the university shall achieve and remain financially independent. This as a result has made many private universities to focus on running their institution for profit so as to meeting the increasing cost of providing infrastructure and quality education. Hence, some this universities are faced with the challenge of financial sustainability. This Constitute the problem of investigation to determine the factors affecting financial sustainability of private universities in Nigeria. A case study of covenant university Otta Ogun state.

OBJECTIVES   OF THE STUDY

The Main Objective of the study is to investigate factors affecting financial sustainability of private universities in Nigeria. A case study of covenant university otta ogun state. The specific objectives include:

1.  To assess the financial resources available for private universities.
2. To determine is the funding for the private universities is sustainable.
3. To recommend the factors affecting the financial sustainability of private universities in Nigeria.

RESEARCH QUESTIONS

    i.        What are the financial resources available for private universities?

ii.        Is the funding for the private universities sustainable?

1. iii.        What are the factors affecting the financial sustainability of private universities in Nigeria?

RESEARCH HYPOTHESIS

Ho₁: There is no significant sustainable funding for private universities in Nigeria.

 SIGNIFICANCE OF THE STUDY

The study addresses the factors affecting financial sustainability of private universities in Nigeria. A case study of covenant university otta ogun state. It provides relevant data for the effective formulation and implementation of policies which will further stimulate the economy to economic growth and development.

 LIMITATION OF THE STUDY

The study was confronted with logistics and geographical factors.

DEFINITION OF TERMS

FINANCIAL SUSTAINABILITY DEFINED

Financial sustainability is defined as the capacity to maintain a balance of assets and liabilities in an ever changing internal and external environment so as to achieve solvency and profitable long-term investment at an   acceptable level of risk”.

PRIVATE UNIVERSITY DEFINED

Private universities are universities not operated by the governments, even though they may receive tax breaks, public student loans, and grants. They are subjected to government regulation.

AGRICULTURAL ECONOMICS

Agricultural economics refers to economics as it relates to the “production, distribution and consumption of agricultural goods and services.

AGRICULTURAL EDUCATION DEFINED

Agricultural Education is the teaching of agriculture, natural resources, and land management. At higher levels, agricultural education is primarily undertaken to prepare students for employment in the agricultural sector.