4 Key results

The surveys covered a wide range of school’s practical operations and resourcing needs. For the purposes of this paper, however, the main findings below concentrate on regulation, access to finance and the use of school development services to improve systems and staff capacity.

4.1 Regulation practices

In line with earlier studies (Adelabu and Rose, 2004; Härmä and Adefisayo, 2013), the research found that a majority of schools surveyed continue to operate outside the formal approval process. Table 4 below shows a breakdown of sampled schools by recognition status, compared with the 2010/2011 census. The significance of these figures and their implications for resource planning can be understood from both supply and demand perspectives.

On the supply side, the growth in the number of private schools from 12,098 in 2011 (Härmä, 2011) to an estimated 18,000 (DFID, 2013) implies a major resource pressure on government as regulator of non-state education. The low numbers and percentages of approved schools and those awaiting approval suggests that government has failed to keep pace with the rapid rate of market expansion. They indicate that current resource in a government department of under 50 staff to meet the regulatory needs of up to 18,000 schools may already be stretched (authors’ personal knowledge). Indeed, the government will need to build substantial additional capacity if it wishes to channel unregistered private schools through the ninestage process required for approval as set out in Figure 2, let alone increase its functions to assure a minimum level of quality in all schools.

Enabling environments for education: Resourcing requirements for inclusive non-state schooling in Nigeria

On the demand side, the high proportion of unapproved schools shows limited current interest in engaging in the formal regulation process. The 42 percent of schools in the 2010/2011 census displayed considerable appetite to obtain approval, notwithstanding practical constraints to meet the guidelines. However, the reduced figure among schools sampled in 2014 suggests that an increased number now lacks the incentive, resource or both to apply for approval.

In terms of reasons, 61 percent of unregistered schools perceived the approval process as too cumbersome and costly, both in terms of compliance and application. Schools must own their property of a minimum size (around four plots of land) to obtain approval under the current guidelines. Meanwhile, costs associated with the approval process were reported to range from N 350,000 up to N 500,000 (approximately £1,160-1,660) depending on the type of school concerned. These figures represent a significant increase on fees recorded in 2004 (N 50,000) (Adelabu and Rose, 2004) and exclude annual renewal charges. Overall the benefits of approval, namely greater credibility and access to state examinations, do not justify the considerable expense involved.

4.2 Access to finance

Difficulty accessing finance was cited by 58 percent of the schools surveyed. This broadly accorded with earlier findings by Härmä and Adefisayo (2013) that “70% reported that finance was their single biggest obstacle (75% of approved schools and 69% of unapproved schools)…[and] hindered efforts to making lasting improvements to school buildings” (p.144). More than half of schools reported use of credit as a top priority in order to expand, improve and meet parents’ demands and expectations. However, of the schools that had applied for a loan with a financial institution (49 percent), under half had been successful. They cited lack of collateral, unapproved status and inadequate savings history with the bank concerned as main reasons for their rejection, with rates of refusal comparable across the different school fee classifications.

Enabling environments for education: Resourcing requirements for inclusive non-state schooling in Nigeria

Going beyond past experiences, the research aimed to quantify the likely future financial needs of private schools to deliver efficient and quality services, as well as the intended use of any credit. Figure 3 shows the level of borrowing sought by the schools sampled for the next three years. Within the 55 schools alone, there is an articulated demand for USD 1,168,000. The high proportion of borrowing planned by high-cost schools is likely to reflect the additional expense of serving wealthier families, greater confidence around financial eligibility, and the relatively modest requests by low- and medium-cost schools. Nevertheless, the responses indicate considerable interest among low- and medium-cost schools to build their operations through credit if available. Figure 4 goes a step further to extrapolate the loan demand to the 18,000 nonstate schools believed to be operating in Lagos. Using school classification proportions from the 2010/2011 census, the analysis estimates market demand for finance in the region of USD 2.5 billion.

Additional disaggregation of the responses reveals the intended use for loans. Priorities focus on property, furniture, equipment and vehicles (Table 5 sets out a more detailed breakdown). Loans for the purchase or refurbishment of property comprise a significant majority, not least because only 35 percent of respondents own their land. Such proposed investments could be driven by a range of proprietor motivations, not least aspirations to expand their operations, the desire to attract more parents, or the need for stability and protection against rent rises by predatory landlords.

Enabling environments for education: Resourcing requirements for inclusive non-state schooling in Nigeria

4.3 School development

In stark contrast to the importance of physical improvements, proprietors in the schools surveyed tended to place less value on staff training and other ‘softer’ aspects of their institutions’ development. In particular, they displayed little use or awareness of effective school processes, or the different non-financial services available that could build their or their teachers’ capacity.

For example, the vast majority of schools (77 percent) had not prepared a school development plan. When asked, proprietors showed little understanding of its purpose, use and potential benefits. Some spoke of informal intentions to train their teachers, but saw little need for documentation or felt there were more pressing issues at hand, especially given existing resource constraints:

I didn’t know that I should write it down (Proprietor, low-cost school).

Enabling environments for education: Resourcing requirements for inclusive non-state schooling in Nigeria

What is the essence of writing it down when you don’t have the means to achieve it? (Proprietor, low-cost school).

The availability of sufficient resources was often cited as a prerequisite for effective planning, both in terms of the time required to develop a plan and the means for its implementation. Even among the 33 percent of sampled schools that had drafted a plan, only one high-cost school covered such comprehensive issues as financial management, teacher and pupil development, and infrastructure improvements.

On governance and participation, responses were similarly mixed. Among the proprietors surveyed, 31 percent had a formal board of governors for discussing and agreeing their school’s strategic direction. Meanwhile, 93 percent of schools had established a parent-teacher association, with 62 percent of associations meeting termly and 22 percent convening twice a term. The surveys did not elicit information about the format, purpose or content of parent-teacher meetings but there is the possibility that they took place more as an opportunity to chase unpaid fees and pursue fundraising, rather than to review or enhance the learning of their children.

Schools were also asked about their interest in and use of external training providers. Uptake across leadership and management was fairly limited: only 38 percent of proprietors and only one low-cost school had engaged external services to build their capacity. However, respondents expressed willingness to pay for courses on financial management and technology for teaching, if such services could be made affordable. In terms of teacher training, all high-cost schools had used providers at an average cost of N 23,333 (£78) per term, while 65 percent of medium-cost schools had purchased services to improve teaching at an average of N 20,000 (£67) per term. By contrast, only 29 percent of low-cost schools had engaged providers to improve teaching on what seemed to be an annual basis.