CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

The right to education has been enshrined in a number of international treaties and
is regarded as a fundamental social, economic and cultural right Tichaona and
Thernbinosi, (2013). It is therefore an access through which all the people can integrate
into mainstream society and a means through which they can exercise social, economic
and cultural right.

It was claimed that education produces knowledge, skills, values and attitudes
which are essential for civic order and citizenship and for sustainable economic growth
and the reduction of poverty. Education is also about culture, it is the main vehicle for
disseminating the accomplishments of a group people. These multiple purposes make
education a key area for human rights in all countries of the world Tichaoma and
Thernbinosi, (2016). The right to education is accepted internationally and enshrined in
major international conventions and many national constitutions including our own
Nigeria’s constitution.

It is therefore, becomes a very disturbing phenomenon to observe that Nigeria’s

education, standards are falling down at an alarming rate, thereby negating the objectives
of this service (education). Although, a multiplicity of factors contributed to this
deterioration of standards. Bayo (2019) asserted that there are four interrelated global
crises which are mutually reinforcing each other: climate change, the energy crises, the

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food crises, and the financial and economic crises. But of these, the consequence of the
global financial meltdown on the Nigerian educational system at all levels will be more
devastating. However, there is contention that the poor economic stitutation the country
is experiencing was the major cause of falling standards in the education sector.

Akintade (2015) believed that one of the immediate effects of poor economic
stitutation on organization is the mobility of the organization to maintain its current
productive capacity owing to inadequate capital. Emmanuel (2016) defined the term
“poor economic ” as the severe economic recession that is used to characterize the current
global economic crises. Economic challenges could be viewed in terms of its negative
effects on the economic betterment of the individual person, which include: insufficient
food provision, inadequate clothing, dilapidated shelter, unemployment issues, inflation
and loss of income in general. However, at macro level, we may find additional factors
which pose serious economic challenges to the welfarism of the people. These may also
include: non-functional healthcare system, inadequate funding of the educational sector,
and poor sanitation, and bad drainage, absence of public convenience, highway potholes
and erosion gullies.

Moreover, educational sector which is the major focus of this work needs to be
examined in its totality both within and international level. Formal education which has
been regarded as a birthright for every child in Nigeria especially basic one to nine
(National Policy on Education). The progressive nations generally believed that good
education is the gateway to success and the cornerstone of social emancipation, economic
achievement and national development as a whole Bayo (2019).

Chivore (2015) claimed that failure of successive colonial governments to provide

relevant and adequate educational opportunities to blacks was one of the major reasons
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that fuelled the protracted armed struggle in most African countries, Nigeria in particular.
Since the independent of 1960, Nigeria has been facing a lot of challenges in education
sector incessant strikes by staff union over welfare and the state of teaching and learning
facilities, increase in the number of out- of- school children.

Adeyinka (2015) identifies a lot of problems currently facing educational

development in Nigeria which includes: the issue of responsibility and control of the
society’s education, the prevalence of multiple system of education, diversification of the
educational system, unstable curriculum and subject, the need to relate the school’s
curricular to national man power needs, unstable staff, poor state of the nation’s
economy. Although, Nigerian government acknowledge that education is a key to socio-
economic development and political transformation. It also acknowledge that education is
a basic human right which played a pivotal role in combating ignorance, disease, crime
and poverty. But the system has experienced setback for many decades.

Moreso, the major problem of educational development in Nigeria today is that of

providing funds for the implementation of Government policies on education and
carrying out curriculum innovations in various disciplines at various level of education.
The national policy on education for instance has not been fully implemented,. Many
schools have not got adequate supply of equipment and personal, particularly for the
reviewed subject Odia (2007)

Also, introduction and retention of the structural adjustment program (SAP) and
the foreign exchange market (FEM) tends to worsen the situation as both had led to
continued devaluation of the naira with the result that more money is now needed to carry
out curriculum innovation or to implement government policies on education. However,
this study will look into the impact of economic crises on the nation’s educational
3
development as many state in country are finding it difficult to pay teacher’s salaries
leading many a times to industrial strikes.

1.2 Statement of the Problem

Global poor economic is a topical issue because of its universal effect especially
on the public spending such as education. The instantaneous and caustic impact of the
poor economic situation on the educational system of Nigeria is the inability to maintain
the current productive capacity owing to inadequate finance Gbenenye, (2014). Also,
there are reports in the media that national government are finding it increasingly hard to
mobilize funds within their own resource base as the financial crises engendered
economic recession or depression that has negatively impacted on state budgets and
education, which is largely public or public – financed ILO, (2016).

Moreso, a visit to any of our public schools at all levels will reveal a nation whose
education policy makers have perfected official deceit as an art. Although the Nigerian
government has rolled out series of bailed out packages to cushion the effect of the crisis
on both the private and public sectors, it appears the economy is still sinking deep into
recession Uniprojects, (2015). The issue of government intervention and its efficacy on
education remains a crux of this study. This is borne out of the fact that economic and
education destabilization remains the bane of national strategy. Thus finding a better
medium of recovery is often the big problem confronting the authorities.

Looking into what situation of education is, one would agree that it has reached a
very alarming stage with mass failure recorded in the national examinations, inadequate
access to tertiary education, steep high in tuition fees in the tertiary institutions, the rising
army of unemployed graduates roaming the streets, crave for education in foreign

4
countries and brain-drain as a result of mass exodus of teachers to foreign institutions.
For instance, in 2014 west African Examination Council (WAEC). Akeusola (2014) said
Nigeria’s problem is not with the standard of education but with the implementation of
policies. According to him, our leaders are so much in hurry to come up with new
policies that are not properly implemented. He further stressed that the 6-3-3-4 system of
education would have been the best if it had been properly implemented, because the
senior secondary schools are supposed to be feeders for the universities, technical
colleges would feed polytechnics while Grade ii students would feed colleges of
Education. But today, grade ii had been completely scraped and everyone wants to go to
university and only consider polytechnics and colleges of education when they fail to
gain admission into universities.

Now, education in Nigeria is currently in crisis, there is less money to spend on

primary, secondary and tertiary institution. Education complains of under-funding while
the government accuses the sector of inefficient utilization of available resources. There
are increasing complaints about poor standard of education at a period when globalisation
demands much from the education system in terms of preparation of skill labour force
Nwachukwu (2014). There is a rampant notion which is generally felt in the Nigeria’s
education sector, frequent strikes by the ASUU and NASUU, teachers in the secondary
and primary schools are facing with irregular salary payment, some states in the country
are proposing a reduction in worker’s salary. To the employed staff in the academic
institutions, their agitation boil down to the inability by the government to meet up the
new salary scheme of N18,000 minimum wage which they said it is must for every levels
of government Vanguard oct. (2014).

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 Owing to this, and given the global economic crisis, the impact of the economic
crisis on education in Nigeria may be more profound as the sector is now facing decrease
funding from the government at all levels. This however prompted the attention of this
study to examine the impact of the financial crisis on the Nigeria education system.

1.3 Purpose of the Study

The main objectives of this research are to:

i. examine the impact of poor economic situation on education sector in Nigeria

ii. determine the way forward to achieve economic recovery and sustained
qualitative growth in education of Nigeria.
1.4 Research Questions
i. To what extent does poor economic have impact on educational funding in
Nigeria?
ii. How does lectures motivation affected through poor economic situation ?
iii. In what way has poor economic serve as impediment in providing adequate
facilities in schools?

1.5 Research Hypothesis

The following hypotheses were developed to this study:

 There is no significant relationship between poor economic situation and

educational funding in University of Ilesa.
 There is no significant relationship between poor economic situation and teachers’
motivation in University of Ilesa.

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  There is no significant relationship between poor economic situation and
provision of school facilities in University of Ilesa.
 There is significant relationship between poor economic situation and school
outcome in University of Ilesa.

1.6 Significance of the Study

The importance of this study lies in that it seeks to establish the impact of the poor
economic situation on the education system in Nigeria. It is hoped that the results that
would be obtained from this empirical process will provide tangible evidence to the
major stakeholders in education ( the Government, non-governmental agencies, private
individual etc) so as to address the education system in a collective and collaborative
manner. It is also envisaged that the result and recommendations may be used to engage
cooperating partners and funding agencies who may wish to positively intervene to
address some of the pressing problems.

1.7 Scope of the Study

The study is delimited to impact of poor economic situation on the educational

system in University of Ilesa.. The content area covers Educational funding in Nigeria,
Teachers motivation during poor economic situation and school facilities during
economic crisis.

1.8 Definition of Terms

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i. Poor Economic Situation : It is a downturn in a nation’s economic activities.

ii. Education: It is a process of teaching, training and learning to improve knowledge and
skills

iii. System: It is an organized set of ideas or theories or a particular way of doing

something.

iv. Economic Growth: It is an increment in a nation’s output of goods and services.

CHAPTER TWO

LITERATURE REVIEW

This chapter provides the review of relevant theories and empirical studies on the
impact of economic meltdown on the education system.

2.1 Theoretical Review

2.1.1 Marx’s Theory of Economic Crisis

Karl Max and his collaborator Fredrick Engels described capitalism in the
“communist Manifests” as a society that has conjured up such gigantic means of
production and of exchange, (that is) is like a sorcerer, who is no longer able to control
the powers of the neither the world whom he has called up by his spells. Indeed, today’s
Nigeria of wild stock market booms and slumps, recurring layoffs and long-term
unemployment, corporate scandals and power blackout, seems to fit their description
better than ever bore. The present economic downturn is no exception. In nutshell,
economic crises-recessions and depressions were a part of capitalism of its birth and,
despite promises to the contrary, continue to plague the system to this moment.

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2.1.2 The Form Crises Take under Capitalism

Stuart (2013) emphasized that at the height of every boom, the apologist for
capitalism will declare that the bust will never come, and that the capitalist “business
Cycle” has been eliminated. So far, they have always been proven wrong. Because of
exploitation, profit and capital accumulation are possible under capitalism. But it does not
make them guaranteed. If there are no profits and accumulation (or even if they are
squeezed) then, business close, people lose jobs, debts are not paid, banks collapse,
government run out of money and in short, there is an economic crisis. He further stated
the form that economic crisis take under capitalism generally fall under two categories:
Crisis from the inability to extract enough surplus value and crisis from the inability to
realize surplus value. Individual capitalist will often have trouble with one or both of
these, however, the economy as a whole is affected. The principal way that realization
crisis are triggered is due a phenomenon called “Over Production” or “Overcapacity”.
The crisis resulting from the inability to extract enough surplus value is produced by a
law Marx referred to as the “tendency of the rate of profit to fall” Stuart (2003).

2.1.3 The Classical and Keynesian Economics View

Keynesian economists were of the opinion that in the short-run especially during
economic recessions, economic output is strongly influenced by aggregate demand (total
spending in the economy). Their view was that aggregate demand does not necessarily
equal the productive capacity of the economy. Instead, it is influenced by a host of factors
and sometimes behaves erratically, affecting production, employment and inflation
Blinder (2008). They often argue that private sectors decisions sometimes lead to
inefficient macroeconomic outcomes which require active policy responses by the public
sector, in particular, monetary policy action by the Central Bank and Fiscal policy action
9
by the government in order to stabilize output over the business cycle. Keynesian
Economists advocated a mixed economy predominated by private sector but with a role
of government intervention during recessions. They served as the standard economic
model in the developed nations during the latter part of the Great Depression, World War
II, and the post war economic expansion (1945-1973), Wikipedia, (2017).

However, the Keynesian lost some influence following the oil shock and resulting
stagflation of the 1970s. The advent of the financial crisis of 2007-2008 caused
resurgence in Keynesian thought which continues as new Keynesian economics. But
Keynes argued that the solution to the great depression was to stimulate the country
(“inducement in invest”) through some combination of two approaches:

(a) A reduction in interest rates (monetary policy) and

(b) Government investment in infrastructure (fiscal policy)

If the interest rate at which businesses and consumers can borrow is reduced,
investments which were previously uneconomic become profitable and large consumer
sales which are normally financed through debt become more affordable.

2.1.4 Theories of the Allocation of Expenditure

Lant and Filmer (2006) explain why a behaviour theory of expenditure allocation
is important for understanding the result of empirical examinations of the determinants of
educational outcomes. On such theory, an output maximizing model is presented along
with three variants: a simple single educational output, a model with uncertainty, and a
model that accommodates multiple educational outputs. They introduced an alternative
model of expenditure allocations in which both educational outputs and teachers welfare

10
enter directly into the determination of spending. While it takes a theory, production
possibilities are determined by an underlying technological process. The maximum
amount of output possible for an amount of input given the constraints imposed by the
underlying technical process is the “production function”. The relationship between plant
growth and water or sunlight or fertilizer is determined by a biological process, the
relationship between coal burned and heat produced is determined by a physical process.
Similarly, applying the metaphor to education one can talk of the educational “production
function” which is determined by an underlying pedagogical process. Even though the
production function is derived from technical not behavioural relationships, one needs a
behavioural theory to understand the result of estimating a production function for two
reasons. First, the increment to output from additional inputs is not constant. The second,
algebra book per student will likely help less than the first and the tenth much less
(perhaps even have a negative impact). The contribution output of an input depends on
the rate of input utilization at which it is assessed. Nearly all education production
function studies are not experiments in which input use is chosen by a researcher, but
rather use data drawn from reality, the spending on inputs (e.g. teacher wages, class sizes,
buildings, textbook use) is chosen for reasons other than research and since input use is
chosen, the theory of input choice predicts the observed input productivity and guides the
interpretation of results. This is particular important in educational research, as there is a
crucial distinction between testing whether inputs have low productivity at their current
rate of application versus testing whether they are “inputs” at all. One could study the
effect of either fertilizer or Mozart piano concertos on corn production. Even though at
sufficiently high rate of application, the size of fertilizer’s impact could be small (or even
negative), fertilizer is clearly an input and the question is the magnitude of the impact. On
the other hand, Mozart’s music while delightful, might not be an input into corn

11
production, in the sense that it has zero corn production impact across all soil conditions,
concerti, and volumes.

Teachers, classrooms and instructional materials are clearly inputs into education.
If one understands the statistical tests of whether the effect of class sizes or teacher wages
are different from zero as test of whether these inputs ever matter (as with Mozart music)
the whole endeavour appears silly and pointless(which in fact as often been the reaction
of the education community to this line of empirical research). However, as the model
above suggest, a failure to reject zero marginal product of higher teacher wages or
reduced class sizes may simply mean that the rate of application is so high that the
marginal product at the chosen rate of application conditional on other inputs is
(statistically) indistinguishable from zero. Second, as discussed, the policy implications
of empirical findings depend critically on the theory behind the data. If the input use is
the result of some endogenous political process, changes in input use may not be feasible
without changes in the underlying process that determines budgets. Simple statements
like “spend more on input X are not necessarily valuable contributions to policy making
when policies are politically determined.

2.2 Empirical Review

This empirical study covers both the developing and developed countries of the
world. Akperan and Awujola(2008); empirical analysis, global economic meltdown and
the Nigeria experience. They employed vector auto regression method on the basis of
OLS technique and data set from 1970-2010. The study revealed that unemployment,
interest rate, capital gross domestic product, capital market share index, import, export
and exchange rate have significant implications on the level of investment in Nigeria.
They recommend that government should return Nigeria to a welfare state and organize
12
the economy for the benefit of both the rich and the poor to cushion the effect of the
economic meltdown. However, in their analysis, they failed to identify the variation that
hampered or hindered the government spending especially on the public goods such as
education, this is because investment used did not employed any educational parameters.

Najeeb (2010), examined comparatively the effect of an economic crisis on

educational outcomes and claimed that the net effect of an economic crisis on educational
outcomes depends on the level at which children are been educated. He further review
that during the 1980-1983 crisis in Costa Rica, the decline in secondary school enrolment
was larger than the decline in primary school enrolment Funkhauser, (2000). The net
effect of an economic crisis also varies by family characteristics such as socio-economic
status, parental education, and employment status of the household head. Thomas et al
(2004), review an evident from Indonesia which shown that children from poor
households suffer more during economic crisis. He said during Indonesia economic
meltdown of late 1990s there was a 10 percent drop in overall enrolment among children,
compared to a 20 percent drop among children from the poorest quartile of households.
In addition to that, households with educated adults are more reluctant to withdraw
children from school during crisis period possibly because educated adults have more
accurate information on government programs, employment opportunities and loans.

Watkins (2005) cited by Tichaona and Thembikosi (2013) claimed that during
colonial era, average expenditure for each white pupil was about 20times higher than the
black pupil, that more resources were channelled towards the education of white children
than for black ones. Education was consistently the single biggest item of budgetary
expenditure, accounting for an average of 18% of total government expenditure in the 80s
which saw the education grow in leaps and bounds. He further states the share of gross

13
domestic product (GDP) allocated to education increased by 3% between 1980 and 1985
which is one of the highest levels of investment in education in the developing world.

Felipe et al (2009) of the world Bank’s Human Development Network prepared a

paper on education in time of global economic crisis suggested that the crisis could lead
to expenditure cuts as income fall and domestic fiscal revenue drop sharply. On the
demand side, school revenue from students and contribution from the community could
decline as employment and family income falls making schools more dependent on
transfers from the government. They further stressed the their may be pressure for
children and youth to help augment family incomes, resulting in more school absences or
higher dropout rate which may be countered by the fact that the opportunity cost of
schooling is also lower due to a shortage of jobs for youths. On the supply side, teacher’s
salary may be delayed more than usual. Vacant teacher posts may remain unfilled, and
allocations for school repairs and school inputs may be greatly reduced with undesirable
consequences on learning. However, the crisis according to them may offer some
opportunities to improve the performance of education systems over the longer term.
These may include adequate resources which are essential for attaining education goals,
but the efficiency with which these resources are used matters greatly during an
economic downturn. More stringent fiscal constraint at all levels of the system provides
the rationale and potential. Also, the political support for tightening the oversight of its
budget and procurement processes reduces resources leakages.

Organisation for Economic Cooperation and Development (OECD), 2013 focus on

the impact of the economic crisis on the public education spending asserted that
education has been given top priority in the national budget in a larger majority of its
member countries. The share of public expenditure spent on education increased from

14
11.8% in 1995 to 13.1% in 2005. But, that trend has been less marked since 2008 crises
which put more pressure on budgets overall requiring government to priorities between
education and other key public sectors such as health, unemployment and social policy.
Even among those OECD countries which saw increase in public expenditure on
education between 2008 and 2010, in half of these increases did not keep pace with the
growth in public expenditure overall.

2.2.1 The Trend of Economic Meltdown

The economy of a country is based primarily on business production, employment

and consumption. During periods of extreme economic pessimism, generally triggered by
commonly or negative event, an economic meltdown can occur Louis (2004). Extreme
fear sets in, causing banks to stop lending, business lost contracts and lay off employees
and consumers also stop spending, all economic participants go into survival mode. If left
unchecked, an economic meltdown can bring a country into financial ruin.

The famous Meltdown was the Great Depression which occurred after the 1929
U.S market crash. Countries all over the world were propelled into severe economic crisis
that lasted into 1940s. More recently, the global economic and financial crisis also started
in the United States of America in august 2007. This occurred as a subprime mortgage
crisis as households faced difficulties in making higher payments and adjustable
mortgages. By the first quarter of 2008, there was wide-spread “credit contraction”, as
financial institutions in the US tightened their credit standards in light of deteriorating
balance sheets. By the fourth quarter of 2008, increased delinquency rates affected not

15
only the sub-prime loans but also spilled over into consumer and other credits Soludo
(2009).

The global financial and economic crisis currently threatens the world stability
and the development of people which seems primarily to be becoming a serious social
crisis and which will have an enormous impact on the education programmes United
Nations Educational Scientific and Cultural Organisation-UNESCO (2009). The effects
of crisis were associated with volatile foods, energy and commodity prices compounded
by a series of shocks already being felt around the world. Daily headlines, shows the ups
and downs of stock prices and chronicle the failures of financial institutions and
industrial giants United Nations Development Programme annual Report, (2009).

2.3 Meaning of Economic Meltdown

Gbenenye (2014) define economic recession that is it used to characterize the

current global economic crisis. In his own study of economic meltdown in Nation’s
economic activity and the consequences typically include increased unemployment,
decreased consumer and business spending, and declining stock prices. According to
Ogunleye (2009), recessions are typically shorter than the period of economic expansion
that they follow but they can be quit severe even in brief.

Economic meltdown occurs when a country experiences a sudden downturn in the

state of its economy. During an economic meltdown, many people will be unemployed or
underemployed, companies may go out of business, wages and benefits will drop or
stagnate, inflations will occur, the nation’s gross domestic products will decrease and it
may be difficult for many prospective borrowers to obtain a loan ([Link]). Economic
crisis is a situation in which the economy of a country experience a sudden downturn

16
brought on by a financial crisis. An economy facing an economic crisis will most likely
experience a falling GDP, a drying up of liquidity and rising/falling prices due to
inflation/deflation. Economic crisis can take the form of a recession or a depression
(Business Dictionary). A global financial crisis refers to a situation when for reasons that
may not necessarily parties to financial contracts in many nations simultaneously
conclude that the contracts they hold are unlikely be honoured by counterparts or those
financial assets. ( Financial Times Lexicon)

2.4 How Some Countries have coped with the Experience of Economic
Meltdown?

Gilborn and Marais (2007) cited by Tichaona and Thembinkosi (2013) in a

comparative study of five countries that went through economic challenges came up with
the following conclusions (the countries are: Brazil, Costa Rica, Hungary, Senegal,
Tanzania).

a) Families accepted an increasing share of the cost of education.

b) The crisis had adverse effects on education in terms of both assess and quality but
the high priority given to the sector by government and households has provided
some shelter for investment in human capital.
c) Re-allocation of resources has taken place among level of education, among
different types of expenditure and among different levels of government. For
example, in Costa Rica, Senegal and Tanzania, structural adjustment involved re-
allocation of resources among primary, secondary and higher education.
d) Most countries have imposed budget cuts or allocated resources in ways which
favours higher education and penalize primary or secondary education.

17
 e) The balance between public and private financial has shifted. All countries
respond to the constraints on public expenditure by shifting some financial
burdens to families and to enterprises, despite the fall in real incomes and profits
that economic crises entailed.
f) Alternatives to improve resources use have had limited success. Cost per pupil has
certainly fallen. More often, the results are cuts in expenditure rather than
conscious attempt to improve efficiency.
g) Quality and success rate have declined. Most other case studies also conclude that
the effect of budget cut can be seen in declining quality in terms of low teacher
morale and reduced expenditure on books and materials. In many cases, school
success rates have also declined as repetition and attrition rates have increased in
primary and secondary.

2.5 Education and its Financing in Nigeria

Education constitutes the very foundation of meaningful, socio-economic, political

growth and development adopted education as an instrument par excellence for affecting
national development Ajeyalemi, (2013). It is as a result of the premium placed on
education that made the federal Government in 1969 to organize the first ever national
curriculum conference in education Ikpese, (2010). The outcomes and the resolutions of
the curriculum conference gave rise to the national policy on education which was first
established in 1977 and has been revised in 1981 and 2004 respectively which all
involved a huge amount of funds Nwachukwu, (2014). Since the implementation of
national policy on education in 1981, there has been a lot of innovations and reforms in
the education system. Unfortunately, education in Nigeria despite these reforms and the
continuous huge investment by various regimes of government has not sufficiently lifted

18
the nation from the morass of technological, under-development, political instability and
social decadence Nwogu, (2012). It is evidence that most of these reforms and
innovations are poorly implemented as a result of unsustainable funding. Therefore, for
effective national development, there is need for optimal funding of education in Nigeria.

The financing of education is at the heart of the educational crisis in any countries
of the world. In Nigeria, there appear to be a perennial crisis of funding and lack of
definite structures and strategies in funding of education. With vision 2020, given the
economic revolution that is going on in rapid developments in information and
communication technology (ICT), it is obvious that any country that want to be reckoned
with in the global arena must be outstanding advance in education. Owoye (2011)
suggested that the objectives of education in any country represents the country’s
statement of intentions regarding what aspect of its social, economic and political needs
and aspirations can or should be addressed by educational system. A review of the
country’s past would reveal that the role of education has always been appreciated. In
spite of this articulation of objectives, what is equally obvious is that, all the initiative
introduced has been poorly implemented for various reasons prominent to unsustainable
funding. For instance, the universal and compulsory primary education (UPE) which was
introduced in 1979 without adequate preparation in terms of numbers of classrooms
required, numbers of qualified teachers available and extent to which available resources
could last Nwachukwu, (2014). More than thirty years after that initiative, the educational
sector at all levels are still characterized by poor performance and one of the major
explanations for this, is the crisis of funding definite structures and strategies for
addressing the problem. Eyiche (2013) stressed out that this manifestation of poor
funding in Nigeria’s education from the mid 1970s into 2000s causes widespread cases of

19
arrears of unpaid teachers’ salaries, school infrastructures and equipment are non
existence, dilapidated or grossly inadequate. This makes the effective management of the
education system a herculean task, and when the situation becomes intolerable, either the
teachers or the students or both revolt, leading to demonstrations, strike actions, frequent
and prolonged closure of the institutions which damages the education quality.

2.6 Economic meltdown and School Facilities

School facilities are the corner stone of education system. They are essential
ingredients in the effort to realize effective teaching and learning outcome. Hinum (2015)
asserts that the quality of facilities has impact not only on educational outcomes but on
the well being of students and teachers. Adeboyega (2008) and Ayodele (2011) have
pointed out that the availability of adequate chairs, desks and other facilities are
necessary for the accomplishment of any educational goals and objectives. They revealed
that effective management of school facilities brings about development of educational
programmes and facilitates educational process. It also results to boosting of the morale
of teachers and students and enhances the usefulness in the determination of the worth of
a school. In the same vein, Hinum (2015) also report that there is a significance
relationship between student’s achievement and the condition of the built environment.
The report of primary education in Nigeria by FGN/UNICEF/UNESCO/UNDP (2000)
shows that chalkboard and chalk were the only materials reported as being adequately
available in some public schools. The introduction of Universal Basic Education (UBE)
has increased enrolment in primary school from 17.9 million in 1999 to 19.2 million in
2000 and 19.4 million in 2001, (FME, 2003). This increase translates to demand for more
places at secondary schools resulting to overstretching of the existing physical facilities.
Investment in education entails the provision of the necessary infrastructure and facilities

20
that could lead the system to the desired goals and objectives, Umoru-Onuka (2014).
Adegboyega (2012) observed that little attention is paid to education in terms of funding
especially during the period of economic crisis and this money is spent on recurrent
expenditure leading to the deterioration of the existing facilities. The general conditions
of infrastructure as well as instructional materials in some public secondary schools are
poor, Oredein, (2015). This prevailing condition would definitely show negative
influence on the instructional quality which may translate to poor academic performance.
Adequate infrastructures are quite essential for conducive and productive learning. There
is an indication that educational sector cannot function successfully without adequate
provision of facilities. This is because students need desks and chairs, teaching staff
needs offices and instructional materials if learning must be effective.

2.7 Global Economic Crisis and Education Sector

There are three interrelated global crises which are mutually reinforcing each
other: climate change, the energy crisis, the food crisis and the financial and economic
crisis. But of these, the consequence of the global financial meltdown on the Nigeria
educational system at all levels will be more devastating.

After several years of rapid growth in developing countries, financial meltdown

has ushered in dramatic shifts in the economic landscape, with direct implications for
education at all levels and more broadly for social development and the achievement of
the Millennium Development Goals (i.e free and compulsory education for all boys and
girls of school age). The crisis comes at a time of impressive progress in getting more

21
children into school, with primary school enrolments across sub-sahara Africa increasing
at a much faster rate than in the [Link] is especially true in the case of Nigeria which has
made little progress to widen access to primary education.

In Nigeria, our public schools are in dire financial straits. In this recession, nearly
every state has less to spend on education. private schools bracing for sharp falls in
number during the recession are also going to extra-ordinary lengths to hold on to
students. There has been in surge in parents requesting fee reduction and some schools
are even offering credit to struggling families.

Nigerian educational system has been on a downward slope before the worldwide
economic crisis. However, the situation was much worse before the advent of democracy
in 1999 when the Universal Basic Education was commissioned to improve and widen
access for primary education. Before then, budgetary allocation to education fell short of
the prescribed 26 percent of the entire budgeting allocation. It was only improved slightly
when democracy berthed in 1999. Even though, at that, budgetary and UBEC
interventions in all the thirty six states amounted to just a little drop in the ocean
considering the year of neglect of public education. Since then, matters have become
worse as series of allegations of corruption has continued to dog the states’ Universal
Basic Education Commission which has been reduced to patronage agencies by
successive governors. This had led to more children out of school, dilapidated
infrastructures as many public schools are not better than detention centres.

In summary, several literature have shown that economic meltdown has serious
impact on Nigeria economy which will definitely lads to reduction in public expenditure
especially educational sector currently, many of the states in Nigeria are finding it
difficult if not impossible to pay teachers’ salaries on the account of low allocation from
22
the federal government even when it is evident that some states have employed another
mechanism of half payment for the teacher which demand for serious attention before it
get out of hand.

23
 CHAPTER THREE
RESEARCH METHODOLOGY
This chapter is concerned with the approaches and method by which the research
was carried out. These include: Research design, the population of study, sampling
procedure, research instrument, procedure for data collection and procedure for data
analysis.

3.1 Research Design

The descriptive survey research will be employed in this study. According to
Olaewe (2011), the purpose of descriptive survey design is to collect factual and detail
information that describes the existing phenomenon. Identify problems or justify current
condition.
3.2 Population of the Study
The total number of faculties were Nine (9) faculties, the population under this
study will comprise of five (5) Faculties in University of Ilesa. The Total population of
lecturers in the University of Ilesa as at the time of study was 150.
3.3 Sample and Sampling Technique
The sample size for the study would be hundred (100) respondents. Simple
random sampling technique would be used in selecting Twenty (20) respondents from
each of the five Faculties will be randomly selected.
1. Faculty of Science.
2. Faculty of Education.
3. Faculty of Arts
4. Faculty of Social & Managements Science,
5. Faculty of Basic & Medical Science.

24
6. Faculty of Computing.
7. Faculty of Science
8. Faculty of Medical Laboratory Science.
9. Faculty of Nursing
The selected faculties they are:
1. Faculty of Science.
2. Faculty of Education.
3. Faculty of Arts
4. Faculty of Social & Managements Science.
5. Faculty of Basic & Medical Science.
3.4 Research Instrument
The main instrument to be used for the study is a self structured questionnaire.
This type of questionnaire is used to collect larger amount of data in a short time. The
questionnaire would consist 20 items and the questionnaire would be divided into two
sections A and B. The items in section A will seek information on the demographic data
of the respondents and section B will seek information on selected variables of the study.
The respondents are to choose and tick (√) alternative responses options e.g
Strongly Agreed (SA) 4
Agreed (A) 3
Disagreed (D) 2
Strongly Disagreed (SD) 1
3.5 Validity of the Instrument
The validity is usually taken to ensure that the questionnaire is measuring what it
claims to measure. The questionnaire was scrutinized by the research supervisor to

25
ensure construct and face validity before it was finally administered. There was no doubt
about the validity of the instrument.
3.6 Reliability of the Instrument
A pilot study was used to ascertain the reliability of the instrument. The instrument
will be administered to two faculties outside the sample area within an interval of two
weeks twice. The data collected will be subjected to inferential Statistics Pearson product
moment correlation will be used to analysis data collected. A readability coefficient of
0.87 was derived which is high enough to make the instrument reliable.
3.7 Procedure for data Collection
Data will be collected by the researcher and with the help of two trained research
assistance.
3.8 Procedure for data Analysis
Descriptive and inferential statistics will be used to analyse the data. Descriptive
statistics eg. Statrdard deviation, mean and percentage will be used to analysis the
research questions, while inferential statistics will be used to test the hypothesis. Pearson
product moment correlation will be used to test all the hypothesis since it deals with
relationship. All hypothesis will be tested at 0.05 level of significance.

26
 CHAPTER FOUR
DATA ANALYSIS AND INTERPRETATION OF RESULTS
4.0 Introduction
This chapter presents the analysis and results of data collected. The presentation is based
on the three research hypotheses postulated to guide the study.

Table 4.1 Distribution of the Respondents by Sex

Sex Frequency %
Male 42 42.0
Female 58 58.0
Total 100 100.0
Source: Field survey 2024
The table above indicates the sex of respondents, which consists of both male and female.
This shows that 42.0°% were male while the female went only 58.0%
Table 4.2 Distribution of the Respondents by Age
Age Frequency %
16-20 years 28 28.0
21-25 years 32 32.0
25-30 years 20 20.0
31 and Above 20 20.0
Total 100 100.0

Source: Field survey 2024

The above table shows that out of 100 questionnaires distributed to the
respondents, 28 respondents were between the age 16-20 years representing 28.0% and
32 respondents were between ages above 21-25 years representing 32.0% while age 25-

27
30 years sampled representing 20.0% and lastly, 20 respondents were between ages 31
and above representing 20.0%. This implies that age 21-25 years participated than
students who falls under other ages category in this research study.
Table 4.3 Faculty Distribution of the Respondents
Faculty F %
Faculty of Science 20 20.0
Facult of Education 20 20.0
Faculty of Arts 20 20.0
Faculty of Social and Management Science 20 20.0
Faculty of basic and Medical Science 20 20.0
Total 100 100.0
Source: Field survey 2024
The above shows that out of the 100 questionnaires distributed to the respondents, 20
respondents were samples from each school. This implies that there are equal
distributions in this research study.
4.2 Testing of Research Hypotheses

1. There is no significant relationship between poor economic situation and

educational funding in University of Ilesa.
2. There is no significant relationship between poor economic situation and teachers’
motivation in University of Ilesa.
3. There is no significant relationship between poor economic situation and provision
of school facilities in University of Ilesa.
4. There is significant relationship between poor economic situation and school
outcome in University of Ilesa.

28
Hypothesis (Ho1): There is no significant relationship between poor economic
situation and educational funding in University of Ilesa.

Table 4.7: Pearson Product Moment Correlation Co-efficient of the responses on

the relationship between poor economic situation and educational
funding in University of Ilesa.

xy
Variable  x x2 r-crit
r-cal df Decision
N
y y2 2
y y
poor economic 630 163700
situation 100 14888 14888 0.910 0.139 98 0.05

Educational funding in
University of Ilesa. 543 136686

Field Work, 2023 Significant at p<0.05, r-cal = 0.910, r-crit = 0.139, df=98

Table above shows the calculated Pearson product value of 0.910 is greater than the
critical value of 0.139 at 0.05 level of significance and with 98 degree of freedom. This
implies that the null hypothesis which states that There is no significant relationship
between poor economic situation and educational funding in University of Ilesa is
rejected; hence, the alternate hypothesis which states that, there is a significant
relationship between poor economic situation and educational funding in University of
Ilesa is retained. Therefore, there is a cordial relationship between poor economic
situation and educational funding in University of Ilesa.

29
Hypothesis (Ho2): There is no significant relationship between poor economic
situation and teachers’ motivation in University of Ilesa.

Table 4.8: Pearson Product Moment Correlation Co-efficient Analysis of the

responses on the relationship between poor economic situation and
teachers’ motivation in University of Ilesa.

Variabl N x x2 xy r-cal r-crit df decision

e
2
y y
poor economic 100 730 226300
situation 0.139
204581 2.9 98 0.05

teachers’ motivation in
University of Ilesa.
600 18335
0

Field Work, 2023 Significant at p<0.05, r-cal = 2.9, r-crit = 0.139, df=98

Table above indicates that the calculated Pearson product value of 2.9 is greater than the
critical value of 0.139 at 0.05 level of significance and with 98 degree of freedom. This
implies that the null hypothesis which states there is no significant relationship between
poor economic situation and teachers’ motivation in University of Ilesa is rejected,
hence, the alternate hypothesis which states that, there is a significant relationship
between poor economic situation and teachers’ motivation is retrain. Therefore, there is a
significant relationship between students’ poor economic situation and teachers’
motivation.

Hypothesis (Ho3): There is no significant relationship between poor economic situation

and provision of school facilities in University of Ilesa.

30
Table 3: Pearson Product Moment Correlation Co-efficient of the analysis of
the relationship between poor economic situation and provision of school facilities in
University of Ilesa.

Variable N x
x2 x r-cal r-crit df decision
y
y y2
poor economic
970 302500
situation 0.05
100 21295 0.98 0.139 98
0
provision of school
facilities in University
of Ilesa 646 155026

Field Work, 2023 Significant at p<0.05, r-cal = 0.98, r-crit = 0.139, df=98

Table 3 shows that the calculated value of Pearson Product value of 0.98 is greater than
the critical value of 0.139 at 0.05 level of significance and with 98 degree of freedom.
This implies that the null hypothesis which states there is no significant relationship
between poor economic situation and provision of school facilities in University of Ilesa
is rejected, thus, the alternate hypothesis which states that, there is a significant
relationship between poor economic situation and provision of school facilities in
University of Ilesa is retained. Therefore, there is a significant relationship between poor
economic situation and provision of school facilities in University of Ilesa.
Hypothesis (Ho4): There is significant relationship between poor economic situation
and school outcome in University of Ilesa.

Table 4: Pearson Product Moment Correlation Co-efficient of the analysis of

the relationship between poor economic situation and school outcome in
31
 University of Ilesa.

xy r-cal
Variable  x x2 r-crit df Decision
N
y y2 2
poor economic
poor economic y y
situation
situation 530 103700
100 14888 12888 0.710 0.132 98 0.05

school outcome in
443 146686
University of Ilesa.

Field Work, 2023 Significant at p<0.05, r-cal = 0.910, r-crit = 0.139, df=98

Table 3 shows that the calculated value of Pearson Product value of 0.98 is greater than
the critical value of 0.132 at 0.05 level of significance and with 98 degree of freedom.
This implies that the null hypothesis which states there is no significant relationship
between poor economic situation and school outcome in University of Ilesa is rejected,
thus, the alternate hypothesis which states that, there is a significant relationship between
poor economic situation and school outcome in University of Ilesa is retained. Therefore,
there is a significant relationship between poor economic situation and school outcome in
University of Ilesa.
4.3 Discussion of Findings
This section handled the discussion of findings based on the data analysis and result
of this study. The revealed that There is significant relationship between poor
economic situation and educational funding in University of Ilesa. This result is in line
with earlier study done; the financing of education is at the heart of the educational crisis
in any countries of the world. In Nigeria, there appear to be a perennial crisis of funding
and lack of definite structures and strategies in funding of education. With vision 2020,

32
given the economic revolution that is going on in rapid developments in information and
communication technology (ICT), it is obvious that any country that want to be reckoned
with in the global arena must be outstanding advance in education. Owoye (2011)
suggested that the objectives of education in any country represents the country’s
statement of intentions regarding what aspect of its social, economic and political needs
and aspirations can or should be addressed by educational system

The result also showed that, there is significant relationship between poor economic
situation and teachers’ motivation in University of Ilesa. This result of the finding
agrees with the view of the report of primary education in Nigeria by
FGN/UNICEF/UNESCO/UNDP (2000) shows that chalkboard and chalk were the only
materials reported as being adequately available in some public schools. The introduction
of Universal Basic Education (UBE) has increased enrolment in primary school from
17.9 million in 1999 to 19.2 million in 2000 and 19.4 million in 2001, (FME, 2003). This
increase translates to demand for more places at secondary schools resulting to
overstretching of the existing physical facilities, stable salary payment as when due.
Investment in education entails the provision of the necessary infrastructure and facilities
that could lead the system to the desired goals and objectives which does motivate the
teacher performance employed to function in a classroom system, Umoru-Onuka (2014).

In addition it was discovered that there is significant relationship between poor

economic situation and provision of school facilities in University of Ilesa. The result
of finding corroborates the opinion of Adegboyega (2012) observed that little attention is
paid to education in terms of funding especially during the period of economic crisis and
this money is spent on recurrent expenditure leading to the deterioration of the existing

33
facilities. The general conditions of infrastructure as well as instructional materials in
some public secondary schools are poor, Oredein, (2015). This prevailing condition
would definitely show negative influence on the instructional quality which may translate
to poor academic performance. Adequate infrastructures are quite essential for conducive
and productive learning. There is an indication that educational sector cannot function
successfully without adequate provision of facilities. This is because students need desks
and chairs, teaching staff needs offices and instructional materials if learning must be
effective.
The alternate hypothesis which states that, there is a significant relationship
between poor economic situation and school outcome in University of Ilesa is
retained. This implies that School architecture and faculties as well government
intervention in form of good salary scale are the corner stone of education system. They
are essential ingredients in the effort to realize effective teaching and learning outcome.
Hinum (2015) asserts that the quality of facilities has impact not only on educational
outcomes but on the well being of students and teachers. Adeboyega (2008) and Ayodele
(2011) have pointed out that the availability of adequate chairs, desks and other facilities
are necessary for the accomplishment of any educational goals and objectives. They
revealed that effective management of school facilities brings about development of
educational programmes and facilitates educational process. It also results to boosting of
the morale of teachers and students and enhances the usefulness in the determination of
the worth of a school. In the same vein, Hinum (2015) also report that there is a
significance relationship between student’s achievement and the condition of the built
environment.

34
 CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 SUMMARY

This research work was carried out to study the impact of poor economic Situation
in Nigeria on students academic performance, A Case study of University of Ilesa. with
the major aim of finding out whether there is impact of economic situation on education
sector in Nigeria and also to determine the way forward to achieve economic recovery
and sustained quality growth in education of Nigeria.
The research methodology procedures employed in this study includes research
design which was chi-square analysis method which was used to find out whether there is
no significant relationship between poor economic situation and educational funding in
University of Ilesa.. After analyzing the data and the hypothesis tested, the study revealed
that there is significant relationship between Economic situation and educational funding
This result is in line with earlier study done; the financing of education is at the heart of
the educational crisis in any countries of the world. In Nigeria, there appear to be a
perennial crisis of funding and lack of definite structures and strategies in funding of
education. With vision 2020, given the economic revolution that is going on in rapid
developments in information and communication technology (ICT), it is obvious that any
country that want to be reckoned with in the global arena must be outstanding advance in
education. Owoye (2011) suggested that the objectives of education in any country
represents the country’s statement of intentions regarding what aspect of its social,

35
economic and political needs and aspirations can or should be addressed by educational
system

5.2 CONCLUSION

Educational expenditure significantly influenced by the variables of economic

situation in Nigeria. It is equally important to note that the size of government
expenditures is a veritable tool in propelling educational expenditure in Nigeria. More
importantly, in spite of the government purported commitment towards educational
development in the country, the sector is characterized by poor and decayed facilities,
inadequate modern facilities (like computer, projector etc), insufficient teachers,
dilapidated buildings and so on. The reason for this is evidence from the study which
include: misplacement of priorities, poor budgetary allocation relative to the percentage
of GDP and lack of political goodwill are the bane behind this deplorable state of our
education system.

The study concluded that Economic situation in Nigeria Led to the decrease in
educational funding by the government. In the year 2014, government spent #493b on
education and in 2016, government expenditure on education falls to #369.6b and in
2017, there was yet another fall in government educational expenditure to #356.58b
which was only 6% of the total budget for the year. On teachers motivation, this study
concluded that teachers are less motivated during economic stiuation . Teachers in
several states are owed months of salary arrears while some states are found to be paying
half salary to teachers which makes teachers lose interest in teaching job.

Furthermore, on school facilities, some school buildings are dilapidated,

instructional materials, specimens and laboratory equipment for science students and

36
even school library for general use are in bad state for few schools that have while some
schools do not even have those facilities at all.

The government is therefore urged to show more concern and greater

commitment to the development of the education sector through increased annual
budgetary allocations of UNESCO standard to the sector to be able to tap from the
potentials of education to overcome the effect caused by economic stiuation in the
overall economy of the country.

5.3 RECOMMENDATIONS

Based on findings from the empirical analysis of this study, the following
recommendations are made:

1. The findings has shown economic situation together with other factors has
effects on our education which push education sector backward that the
government needs to work upon. Such factors may include misallocation of
educational resources, inadequate teachers, poor condition of teaching services
etc may require proper attention of the government.
2. The government should ensure that knowledge and experience about
programmes that can improve educational sector are disseminated effectively,
the stakeholder such as families, students, teachers, private individual and school
administrators must be duly carried along. There is need for the government to
institute a regulatory framework i order to monitor the activities in the
educational sector at all levels of government.

37
3. Government should ensure better monitoring and evaluation of educational
projects as this will not only allow the government to show results to the citizens,
but also improve education results over time.

38
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42
 APPENDIX
TOPIC: IMPACT OF ECONOMIC SITUATION IN NIGERIA ON STUDENTS ACADEMIC
PERFORMANCE. A CASE STUDY OF UNIVERSITY OF ILESA
Dear respondent,
Your assistance is kindly required in completing this questionnaire which will be used solely for
academic purpose and will be treated with strict confidentiality.
Thanks for your anticipation and mutual understanding.
SECTION A
Please read the following items diligently and indicate you response by ticking in the appropriate
space provided.
1. SEX MALE ( ) FEMALE ( )
2. AGE 16-20 ( ) 21-25( )
25-30( ) 31 above( )
3. FACULTIES
1. Science ( ) 2. Education ( ) 3. Basic & Medical Science. ( )
4. Social & Managements Science ( ) 5. Arts ( )
SECTION B
Please indicate the extent of your agreement with each of the following statement regarding your
school by ticking the appropriate column towards the right hand side.
NOTE THAT:
SA – Strongly Agreed, (4)
A – Agreed, (3)
SD – Strongly Disagreed, (2)
D – Disagreed (1)
S/N ITEMS SA A D SD

There is no significant relationship between poor

economic situation and educational funding in
university of Ilesa.

43
1. Economic meltdown has led to the decreased in
educational funding by the government.

2. Debt problem in Nigeria has negative effect on

educational funding

3. There is adequate provision of free education in

Nigeria.

4. Educational funding leads to development of human

capital for national development.

5. Nigeria economy was affected by corruption on the

part of our political leaders.

6. Teachers are less motivated to increase in their

efficiency and productivity during economic
meltdown

7. There is lack of encouragement on the part of

government to teachers through organizing trainings,
seminars and symposiums where new method of
teaching can be discussed.

8. There is regular and timely promotion on the job for

teachers.

9. Payment of half salaries in some states to the teachers

has made many teachers lose interest in teaching job.

10. If Nigeria educational system want to achieve its

goals and objectives, then teachers needs to be highly
motivated.

11. There is renovation of facilities in schools during

economic meltdown.

12. Government has been striving to make school

environment conducive for learning.

44
13. There is adequate instructional materials, specimens
and laboratory equipment for science students to
explore

14. School library, chairs and desks for students are

adequate and up to standard in your school.

15. Present economic meltdown has led to shortage of

teachers, guidance and counselors in schools.

16. Economic meltdown lead to poor performance of the

students

17. Economic meltdown increase the number of drop out.

18. Economic meltdown lead to failure of the goals and

objective of the school.

19. Economic meltdown will lead to poor

implementation of the school curriculum.

20. Economic meltdown reduce the outcome of human

capital.

45