How Nigerian Varsities Can Explore Alternative Funding Amid Rising Financial Pressures
At the Commonwealth Institute Universities Leaders Conference held recently in Lagos, university administrators, financial experts and education strategists explored practical ways institutions can diversify revenue sources, strengthen alumni engagement, commercialise research and build strategic partnerships capable of sustaining quality higher education. Funmi Ogundare reports
For two days, vice-chancellors, pro-chancellors and registrars from federal, state and private universities across the country, as well as financial experts and education strategists, recently converged on the Golf View Hotel, Ikeja, Lagos, for the Commonwealth Institute Universities Leaders Conference.
Themed ‘Funding and Revenue Generation for Universities’, the conference organised by the Commonwealth Institute had the objective of deliberating on sustainable funding strategies and innovation for higher institutions in Nigeria, as well as strengthening the university systems at a time when institutions face mounting financial pressures, regulatory demands, and global competition.
Discussions at the conference also focused on international student recruitment, donor attraction, and alternative sources of income for universities, among other topics. In his remarks, a professor of Strategic Development and Director of the Commonwealth Institute, Anthony Kila, called on Nigerian universities to rethink their relationship with students and alumni as part of efforts to strengthen endowment funding and diversify revenue generation.
He said that the era when universities depended solely on government allocations or tuition fees is no longer sustainable, noting that globally successful universities generate significant revenue from multiple streams beyond tuition.
He explained that the conference was designed not to copy foreign institutions such as Harvard University and the University of Cambridge, but to identify solutions suited to Nigeria’s peculiar realities and opportunities.
Kila expressed hope that participants would leave the conference with practical ideas to improve funding and educational standards in their institutions.
On the role of alumni endowment funds, he stressed that universities must deliberately build stronger emotional connections with students if they hope to secure future donations from graduates.
According to him, many alumni in Nigeria feel disconnected from their universities due to negative experiences during their studies.
He noted that universities must go beyond academic teaching to nurture, encourage, and inspire students so they develop a sense of belonging and gratitude towards their institutions.
“Students should feel that the university and lecturers contributed positively to their lives, so they will willingly support the institution in the future,” he added.
The Chairman of the Nigeria Higher Education Foundation (NHEF), Wale Adeosun, urged Nigerian universities to reduce their overdependence on government funding and instead leverage alumni endowments, research grants and innovation commercialisation as sustainable sources of revenue.
He identified tuition, alumni endowments, research grants and commercialisation of faculty innovations as the four major funding sources for universities globally.
According to him, while tuition remains a traditional source of revenue, universities must increasingly focus on building strong alumni support systems and attracting research funding through grants written by faculty members.
He also stressed the need for universities to commercialise ideas and innovations developed within their institutions, especially in biotechnology and technology-related fields, saying that such innovations could attract venture capital investments and generate substantial income.
Adeosun noted that many Nigerian universities possess gold mines in the form of their alumni networks, adding that many young Nigerian graduates are already developing globally relevant solutions through coding and Artificial Intelligence (AI).
“The alumni of universities should be the critical source of funding for schools, while government funding should only be supplementary,” he said.
He called on universities to establish professional advancement offices dedicated to alumni engagement and fundraising, describing such offices as best practice in higher education management.
According to him, advancement offices should operate year-round, maintaining strong relationships with alumni and encouraging them to continually support their alma mater.
Adeosun, the Chief Executive Officer of Kuramo Capital Management, added that the responsibility for driving this cultural shift rests largely on vice-chancellors, whom he described as the chief fundraisers of their institutions.
He emphasised that university leadership must prioritise providing students with high-quality experiences during their academic years so that successful graduates will willingly contribute to the development of future generations.
“The culture of treating students as potential lifelong stakeholders must begin within the university system,” he added.
A finance and management expert, Ayo Abina, called for the overhaul of Nigeria’s tertiary education funding structure, warning that the current system is unsustainable and incapable of delivering the quality education needed for national development.
He argued that most public universities in Nigeria remain overly dependent on government allocations, unlike private institutions, which operate more efficiently by adopting cost-reflective financial models and paying closer attention to balance sheets.
Abina stated that Nigerian universities can no longer continue charging what he described as unrealistically low tuition fees while expecting world-class educational outcomes.
“The average tuition in many public tertiary institutions is between N50,000 and N100,000 annually, and in some state universities it is even lower. In some cases, students spend more on mobile phone data than on tuition,” he said.
He stressed that while education should remain accessible, the country must confront the reality that quality education comes at a cost. He proposed a gradual review of tuition fees alongside the establishment of an effective student loan system that would enable students to access education without immediate financial hardship.
He explained that rather than insisting on near-free education, the government should provide long-term education loans repayable after graduation and employment, similar to systems in developed countries.
“If quality education costs between N1.5 million and N2 million yearly, then the government should provide structured loans for qualified students, repayable over time after graduation. What matters is creating economically viable and employable graduates,” he stated.
The expert also expressed concern over the migration of highly trained professionals, especially medical doctors, who leave Nigeria shortly after benefiting from heavily subsidised education funded by taxpayers.
“You train doctors with public funds at highly discounted rates, and after graduation, they relocate abroad for better opportunities. The country must begin to ask what the return on investment is,” he added.
Abina further advocated the creation of lean, specialised universities rather than large, conventional institutions struggling to maintain numerous expensive faculties and teaching hospitals.
According to him, agrarian communities, for instance, could focus on specialised agricultural institutions that drive innovation and productivity in their local economies.
He also urged universities to develop self-sustaining ecosystems through commercial ventures, research partnerships and industry collaborations.
Drawing comparisons with institutions in advanced economies, the expert lamented that Nigerian universities have failed to fully commercialise research and innovation despite housing some of the country’s brightest intellectuals.
“Why should major innovations and research solutions come from consulting firms rather than universities filled with professors and researchers? Universities should become productive economic centres,” he stated.
He cited global examples such as Silicon Valley’s relationship with Stanford University, noting that strong collaboration between industries and academic institutions has been central to technological advancement elsewhere.
He called on banks, oil companies, insurance firms and fintech organisations to establish industry-funded faculties and research partnerships within Nigerian universities, especially in emerging sectors such as financial technology and digital payment systems.
He also emphasised the importance of alumni endowments and legacy projects, urging institutions to structure donations to encourage wealthy alumni to invest meaningfully in their alma mater.
Participants at the conference emphasised the importance of building stronger relationships with students, alumni and host communities to ensure long-term institutional support.
Several speakers argued that students who are well taught, inspired and treated with dignity are more likely to remain connected to their alma mater and contribute financially in future. University leaders were encouraged to establish professional advancement offices, promote stakeholder engagement, leverage technology and Artificial Intelligence, and pursue collaborations with international institutions to improve standards, expand opportunities and achieve financial sustainability.
In her submission, a Professor of Health Promotion and Education and Vice-Chancellor of Chrisland University, Abeokuta, Oyedunni Arulogun, called on Nigerian universities to strengthen relationships with students, parents and host communities as part of efforts to diversify funding sources beyond government allocations.
She said institutions must first change their mindset and recognise that government alone cannot adequately fund higher education.
The VC stressed that students remain the most critical stakeholders of any university and should be treated with utmost care and respect.
According to her, students who enjoy positive experiences during their academic journey are more likely to remain emotionally connected to their alma mater and contribute to its growth in future.
Arulogun added that universities must also strengthen their relationship with parents and communities through meaningful engagement and corporate social responsibility initiatives.
She explained that institutions that positively impact their host communities are more likely to receive support and goodwill in return.
She maintained that with the right approach and stronger stakeholder relationships, universities can successfully attract alternative sources of funding and reduce overreliance on government support.
The Chancellor of Lagos State University (LASU), His Royal Highness, Oba Olufolarin Ogunsanwo, described the event as timely, noting that funding challenges facing higher institutions in Nigeria require innovative and collaborative solutions.
According to him, one of the major takeaways from the conference was the need for universities to deliberately cultivate their alumni networks, especially graduates who have excelled in their various professions and businesses.
“Over the years, universities have produced people who have done very well for themselves in society and in their private lives. Calling on them to come and support their alma mater is very important,” he said.
The monarch stressed that the government alone could no longer bear the financial burden of universities, adding that both public and private institutions must explore sustainable revenue streams to support development and academic advancement.
He commended the Commonwealth Institute for organising the conference, saying it provided a platform for chancellors, vice-chancellors, pro-chancellors, and proprietors of private universities to exchange ideas and develop strategies to improve financial sustainability in higher education.
He also emphasised the need for universities to prioritise students’ welfare and personal development.
“For every student in our higher institutions, we need to make them feel comfortable and help them realise their self-worth so they can become useful to society in future,” he said.
Speaking on his vision for LASU as its sixth chancellor, Oba Ogunsanwo said he would focus on promoting industrial harmony among academic and non-academic staff, while supporting balanced infrastructural development across the institution’s four campuses located in Ojo, Epe, Ikeja and Badagry.
The Vice-Chancellor of Bells University of Technology, Prof Jeremiah Ojediran, said that funding remains a major concern for private universities, particularly self-funded institutions. According to him, the conference provided university administrators with an opportunity to explore new strategies to attract funding and increase internally generated revenue.
He revealed that the institution has intensified efforts to strengthen alumni engagement through its Advancement Centre, established about three years ago to reconnect former students with the university and encourage them to contribute to its development.
“Bells University, which is about 20 years old, has begun compiling a comprehensive database of its alumni both in Nigeria and in the diaspora.”
He noted that the institution now has alumni leadership structures at home and abroad aimed at fostering stronger relationships among graduates and mobilising support for the university.
“We are trying to put together a database for our alumni. We succeeded in getting some in Nigeria and a few in the diaspora, so we now have presidents for both the local and diaspora alumni groups,” he said.
Ojediran added that the university hopes the strengthened alumni network will encourage graduates to give back to the system and create opportunities for partnerships and development initiatives.
The Vice-Chancellor of Ekiti State University, Prof. Joseph Ayodele, said that public universities, particularly state-owned institutions, could no longer depend entirely on government funding because of increasing competition for resources from other sectors of the economy.
He said that universities must begin to look inward by mobilising resources within their environment, strengthening partnerships and developing innovative ways to generate additional income to support academic growth and infrastructural development.
The VC stated that while universities in Nigeria may not necessarily be underfunded, many institutions are underfunded due to the rising costs of running modern academic programmes and maintaining quality standards.
He explained that the expansion of universities and the increasing demand for technology-driven education require huge investments in facilities, equipment and state-of-the-art learning resources.
