5 Discussion and implications

The research generated rich and valuable data to better understand how private schools, in particular those that serve low-income communities, operate in Lagos. The following section reflects on the findings in light of existing literature to explore implications for resourcing inclusive non-state education going forward.

In terms of regulation, the research corroborated earlier studies showing that a majority of private schools in Lagos function without approval and under the government’s radar (Härmä, 2011). Indeed, the proportion of ‘illegal’ schools appears to have increased. This has various implications for Lagos State Government as regulator of the emerging pluralist system. First, it implies that schools experience significant constraints in accessing formal processes if most now prefer to operate outside the official guidelines. This may result from them having insufficient incentives or inadequate resources (or both) to complete the stringent approval process, but warrants further investigation. Secondly, parents as consumers of education are patronising unregistered schools, notwithstanding their unapproved status, which calls into question the validity and legitimacy of the wider system. Third, the findings indicate a shortage in government resources to engage effectively with the private sector to facilitate a better level of non-state quality.

In light of these, Lagos State Government needs to reconceptualise its role as an enabler and not just a provider of education. Specifically, the Ministry of Education needs to commit more human and financial resources to support and oversee private schooling, given its enrolment of the majority of children. These amounts would be minimal compared to the cost of public delivery but could focus on quality assurance and the dissemination of relevant information to parents and other education stakeholders. Resources should also address the existing regulatory framework with realistic reforms to reduce costs, increase incentives, and include rather than exclude private schools.

The stringent current guidelines have a wider adverse effect on non-state education and undermine schools’ ability to access formal finance. Respondents cited their unapproved status, in addition to a lack of collateral, as major impediments in obtaining loans. As Härmä and Adefisayo (2013) note above, these constraints are mutually reinforcing, with ‘illegal’ schools unable to access the credit needed to purchase their properties and thereby meet the criteria for approval. Indeed, for those proprietors that can obtain loans, the interest rates are typically very high (15-50 percent) and repayment terms customarily short (Härmä and Adefisayo, 2013).

The funding gap to improve private schools in Lagos is significant, possibly around USD 2.5 billion over the next three years. With government likely to be both unable and unwilling to shoulder such costs, there could be a growing role for the financial sector, including commercial banks and microfinance institutions, to meet schools’ particular demands. If Lagos State Government can enable more inclusive regulation, schools would present a lower credit risk and banks may be able to differentiate their services with lower interest rates and products that accommodate the requirements of all schools. Indeed, evidence emerging from Pakistan (Andrabi et al., 2015) suggests that an increased availability of finance to all schools in a market can yield overall quality improvements and gains in children’s learning outcomes.

Finally, the huge number of private schools in Lagos combined with the limited use of external training among low-cost schools could represent a significant opportunity for service providers. Specialists who can reduce their overheads and deliver courses at affordable rates could achieve commercial scale in the market while building the capacity of proprietors and teachers to improve their practices. Again, such an

Enabling environments for education: Resourcing requirements for inclusive non-state schooling in Nigeria initiative is underway in Pakistan to examine the sustainability and impact of this approach (Andrabi et al., 2015).