PROBLEMS

i) Externality Problem
One basic reason why the public or government should finance education is the externality problem. It is generally believed that the provision of education to a group of people in the society has a spillover effect on others that did not get such education (Akanghou, 1983) by improving the productivity or enlightenment of the latter. This type benefit is referred to as external benefit or neighbourhood effects.

ii) Compulsory Provision of Education to a certain Level or Provision of Universal Education
It is generally argued that because of two reasons – externality problem and compulsion, the government comes up with the policy decision to finance education. However, in compulsion, the government sees it as obligatory to provide information or education to the society to remove consumer ignorance. Chapter iv, 45(1) (2) of the 1995 Draft Constitution provides that “Every Nigerian child be entitled to free and compulsory primary Education…… and every Nigerian Citizen shall be entitled to participate in free adult literacy programmes to be provided by government”, (Professor Gidado Tahir, 1999:71).

iii) Lack of Capital Market
This is another problem that exist in funding education. Unlike financing any project, where the individual goes to the capita market for a loan to be repaid within a definite time period, investment on education is investing in particular human beings, and the reward is not paid immediately but over life time. Since the individual can migrate, it is difficult to get back the loan.


iv) Increased Educational Provision
Private entrepreneurs hardly provide education because of the profit which is limited and for that reason government ahs to aid them in order to produce the number of the educated people required of the economy. This consistent with the tents of the manpower requirement approach to educational plainning which, according to Nwadiani (1998:49), is “the continous systematic analysis of the skilled manpower that are required in the economy”. In some societies, private individuals provide education, but as a relatively high price which may not be afforded by most people.

v) Attainment of National Objective
Nations all over the world tend to look up ot education for the attainment of their economic, social and political objectives. The Nigerian Objectives as spelt out in the National Policy on Education (1981) such as national unity and political cohesion, bridging the social and economic gaps between regions and states, manpower requirements for socio-economic development e.t.c., will be more readily actualized if government funds education.

vi) Income Distribution and Effective Control of the Nation
The classical philosophy that whoever controls the education of the young controls the future of the nation holds way here. For government to easily execute its policies and programmes for the effective control of the nation, it has to fund education in as much as it would want to control it. Furthermore, equally in line with the policy on equalization of opportunity, education being he instrument for acquisition of knowledge and skills needed for effective participation in and reward for economic activities, it has to be provide and/or funded by government.

Listing of the Problems of Funding school programmes in Nigeria
You must have come to the realization that funding is a topical issue of interest among parents, a school administrators and policy maker. This is perhaps because fo the realization that no educational programmes can be effectively implemented without adequate funds. The second reason for the interest is that the education sector competes with other sectors of the economy in the allocation of funds. To put this discussion into perspective, let us categorize the problems of funding of educational programmes in Nigeria as follow;
1) Inaccurate statistical data
2) Political instability
3) Lack of stable polices in education
4) Sole dependence of the Federal Government on oil revenue
5) Population explosion
6) Limited sources of funds available to education
7) Indiscipline and corrupt leadership
8) Diversion of funds meant for education to other sectors
9) Inadequate allocation fo funds to the education sector
10) Methods of disbursing funds to various levels of education

Problem of Inaccurate Statistical Data and Political Instability
The issue of inaccurate statistical data is one that faces every sector fo the Nigerian economy. Wrong information and wrong figures make it difficult for the government to plan education effectively much less proved funds for education.

Problem of Lack of Stable Policies in Education Sole Dependence on Oil Revenue and Population Explosion
A stable policy is a firmly established course of action adopted by an individual, a group or an organization or a nation to accomplish set objectives.

Problem of Limited Sources of Funds and Inadequate Allocation of Funds to the Education Sectors
The education sector competes with the industrial, health, agricultural communication and steal sectors of the Nigerian economy. Education demands effective funding from the government.

Problem of Indiscipline and Corrupt Leadership as well as Diversion of Funds Meant for Education to Other Sectors
Indiscipline and corruption have eaten deep into the fabrics of Nigerian society. In fact, indiscipline and corruption are today found in the industrial sector, in health institutions, in government agencies and parastatals and even in educational institutions that ware once known for order and decorum.