Macroeconomic Determinants of Education Expenditure in Nigeria, 1980-2012

Abstract

The paper focuses on the determinants of education expenditure in Nigeria.  The variables for the study which spans the period 1980-2012 include government expenditure on education (GEE) as dependent variable while oil revenue (ORV), non oil revenue (NOR) and openness (OPEN) as independent variables. The study employs co-integration and VAR methods. The findings revealed that oil revenue was the most important determinant in funding education expenditure both in the short and the long run in Nigeria. The funding from non oil revenue was more or less not substantial while impact external sector on education expenditure was deleterious. The paper therefore recommended that corruption so prevalent in the oil and gas sector, the Nigerian National Petroleum Corporation (NNPC), must be dealt with.

Keywords: Education Expenditure, Oil Revenue, Non Oil Revenue, Co-integration, VAR