Financing for equity in higher education
1. Education resources to subnational governments
2. Education resources to institutions
3. Education resources to students
4. Support for students' living costs
Introduction
Key financing indicators (UIS Data)
The gross enrolment ratio for tertiary education was 11% in 2018.
Tuition-free status
While federal universities are officially tuition-free, they have introduced increased charges for other items such as registration, accommodation, and laboratory fees.
Governance
Nigeria's higher education system operates on a two-tiered model. The federal government manages federal universities, polytechnics, and colleges of education, ensuring a unified national framework for higher education policies and administration. The Federal Ministry of Education is specifically responsible for the coordination of education policies at the national level, overseeing tertiary education, including universities and colleges, while the National Universities Commission regulates and oversees the activities of universities in Nigeria. The National Board for Technical Education regulates and supervises technical education in the country, including the polytechnics and technical colleges. The National Commission for Colleges of Education regulates and supervises the activities of colleges of education.
State governments have the autonomy to manage their institutions.
Federal universities, polytechnics and colleges of education receive funding from the federal government, while state-owned tertiary institutions receive funding from the respective state governments. At 37%, tertiary education accounts for the largest share of the education budget of states.
Nigeria's higher education landscape is governed by a mix of federal and state laws, along with policies and guidelines established by the National Universities Commission.
1. Education resources to subnational governments
The two primary intergovernmental transfer mechanisms for educational financing in the country are the Universal Basic Education Commission Grant and the Tertiary Education Trust Fund (TETFUND), which provide funding at the primary and tertiary levels respectively. TETFUND is funded from a dedicated 2% education tax levied on the assessable profits of companies registered in Nigeria to provide supplementary funding for public tertiary institutions (universities, polytechnics, and colleges of education). From 2011-21, TETFund raised a significantly higher amount (N2.15 trillion) compared to UBE grants (N660.82 billion).
2. Education resources to institutions
Funding for private universities in the absence of public institutions
There is no national regulation on providing subsidies or aid to private higher education institutions. All institutions are encouraged to explore diverse funding mechanisms such as commercial ventures, endowments or consultancy services.
Allocation and equity
Established in 2011, the Tertiary Education Trust Fund (TETFUND) focuses on supporting the needs of public tertiary institutions (universities, polytechnics, and colleges of education) in the country. Its funding comes from a dedicated 2% education tax levied on the profits of companies registered in Nigeria. It is allocated to institutions based on specific criteria, targeting areas like infrastructure development, research initiatives, and staff training. TETFUND has at least 262 beneficiary institutions, 142 of which are owned by state governments.
In contrast to the UBE programme's formula-based funding, TETFUND operates a competitive grant system. Public institutions submit funding proposals, and only those deemed most aligned with TETFUND's priorities and demonstrating exceptional merit through the review process are awarded grants. Most of the TETFUND beneficiary institutions at the federal (56%) and state (50%) level are universities.
In 2021, TETFUND disbursed N221.2 billion to fund projects in public universities, polytechnics and colleges at the federal and State levels - 23% of the total actual education spending of state governments in the same year. Most funding for public tertiary institutions (62%) is allocated to universities, followed by polytechnics (22%) and colleges (16%).
3. Education resources to students
Admission for vulnerable groups
The National Higher Education Admissions Policy, widely known as the Quota Policy, aims to enable equitable access to higher education based on three intersecting criteria through which quotas for higher education access are calculated. These include academic merit (45% - based on ranking of entrance examination scores), educationally less developed states (20% - reserved for prospective students from the 21 states which have been declared as educationally ‘less-developed’), and catchment area (35% - reserved for applicants from the surrounding regions of the respective university).
Scholarships, grants and loans for vulnerable groups
The 2023 Student Loans (Access to Higher Education) Act (amended by the 2024 Act) aims to provide equal access to public higher education institutions established by the federal government without any discrimination from gender, religion, tribe, position or disability of any kind. The Nigeria Education Loan Fund was established to provide loans to qualified Nigerians for tuition, fees, charges, and upkeep during their studies in approved tertiary academic institutions and vocational and skills acquisition institutions across the country. Applicants must have secured admission to any of the Nigerian universities, polytechnics, colleges of education or any vocational school established by the Federal Government or the Government of any state of the federation to be eligible for the loan.
While the original Act included a family income threshold (less than N500,000 per year), the 2024 Student Loan (Access to Higher Education) Act removed this criterion, so Nigerian students can apply for these loans and accept responsibility for repayment according to the Nigeria Education Loan Fund’s guidelines. Student applicants cannot be disqualified based on their parents’ loan history, while the amended Act additionally establishes a justice and fairness provision mandating the Board to ensure a minimum national spread of loans approved and disbursed in each financial year.
In 2025, reforms were made by the federal government to the scholarship programme for tertiary students to ease student financial pressure, with 5% of scholarships reserved for students with disabilities. According to the government, reforms will benefit about 15,000 students under the Nigerian Scholarship Award, the Education Bursary Award and the restructured Bilateral Education Agreement scheme. A total of NGN6 billion was approved for the 2025-26 cycle.
The 2021 National Policy on Gender in Education and Implementation Guide includes provisions for gender-targeted loans to assist students, while the 2018-22 Education for Change: Ministerial Strategic Plan supports special scholarships or bursaries for girls in STEM and TVET.
The 2024-28 Strategic Roadmap for Inclusive Access to Quality Higher Education includes provisions for special scholarships and other forms of support for special needs students in higher education, led by local and state governments under UBEC coordination at an estimated cost of NGN 200 million for 2023/24.
The 2024-27 Roadmap for the Nigerian Education Sector further includes objectives to provide scholarships or bursaries to boys and girls in TVET institutions, and implement incentive schemes such as scholarships for excellent students in STEAM courses.
4. Support for students’ living costs
Transportation
There is no explicit reference to transportation costs for students covered in the 2024 Student Loan (Access to Higher Education) Act.
Accommodation
According to the 2024 Student Loan (Access to Higher Education) Act, the Nigeria Education Loan Fund provides loans to qualified Nigerians for ‘upkeep’ during their studies in approved tertiary academic institutions.
Textbooks
There is no explicit reference to textbook costs for students covered in the 2024 Student Loan (Access to Higher Education) Act.
