Only 4 of 68 Federal Universities Exploit Alternative Funding, Says Education Minister

The Minister of Education, Dr Maruf Tunji Alausa, has expressed concern over the poor mobilisation of alternative funding by Nigerian federal universities, revealing that only four of the country’s 68 federal universities are meaningfully exploiting available funding opportunities.

Key Highlights

• Only four of 68 federal universities are meaningfully exploiting alternative funding opportunities.
• Minister Maruf Tunji Alausa urged universities to diversify their revenue sources.
• Universities are encouraged to attract research grants, endowments, alumni donations and private-sector partnerships.
• Advancement Offices in public universities are to report directly to vice-chancellors.
• Advancement directors should have a minimum five-year internal tenure.
• Government funding for public universities will continue.
• A national framework for sustainable tertiary education financing is being developed.

Speaking at the National Advancement Forum 2026, Alausa urged vice-chancellors to urgently diversify their institutions’ revenue sources rather than depend predominantly on government allocations.

He described the situation as unacceptable, stressing that universities must develop sustainable funding models through research grants, endowments, alumni contributions, philanthropy and partnerships with the private sector.

“Government funding is not enough. Universities live, function and excel on blended funding,” the minister said.

Minister Urges Universities to Mobilise Alternative Funding

Alausa charged vice-chancellors to regard resource mobilisation as a core responsibility and build stronger relationships with alumni, businesses, philanthropists, prominent individuals and research funders.

He said such partnerships could help finance laboratories, scholarships, research chairs, innovation programmes and other strategic academic priorities.

The minister, however, clarified that the push for alternative funding does not mean the Federal Government is withdrawing financial support from public universities.

He said the administration of President Bola Ahmed Tinubu had demonstrated its commitment to education through budgetary allocations, tertiary infrastructure investments and other interventions

According to Alausa, the Federal Government currently bears personnel costs in full, while universities retain 75 per cent of their internally generated revenue and continue to benefit from direct and special interventions by the Tertiary Education Trust Fund.

Advancement Offices to Report Directly to Vice-Chancellors

To strengthen fundraising efforts, Alausa directed that Advancement Offices in all public universities should report directly to vice-chancellors rather than registrars.

He instructed vice-chancellors attending the forum to immediately communicate the directive to their institutions.

The minister also directed that directors of Advancement should have a minimum internal tenure of five years, renewable where appropriate, to enable them to establish sustained relationships with donors, alumni, industries and other funding partners.

Alausa described advancement officers as professional fundraisers who require institutional support and stability to effectively mobilise resources.

FG Pushes Stronger Alumni Engagement

The minister urged universities to strengthen alumni engagement by developing functional databases and using technology to maintain long-term relationships with graduates in Nigeria and abroad.

He said alumni engagement should be treated as a strategic component of institutional advancement rather than a ceremonial activity.

Alausa also recalled that some research and endowment funds had previously been transferred into the Treasury Single Account, creating challenges in accessing the funds and undermining confidence in their management.

He said President Tinubu subsequently directed the development of a framework allowing research and endowment accounts to be moved from the TSA to commercial banks of choice.

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New Funding Framework for Public Universities

The minister expressed disappointment that many universities had yet to fully utilise the opportunities created by the policy.

He warned that institutions that fail to diversify their funding sources risk undermining their capacity for sustainable growth, research and academic excellence.

Alausa announced that the Ministry of Education, in collaboration with the Nigerian Higher Education Foundation, would develop a national framework for sustainable tertiary education financing.

The framework will cover endowment governance, accountability, research grants, Advancement Office structures, alumni giving, industry partnerships, philanthropy incentives, revenue management and transparency.

He said all public universities would progressively be incorporated into the framework.

Each institution will be expected to establish an endowment, strengthen its advancement structure, maintain a functional alumni database and improve its capacity to attract research and external funding.

The universities will also be expected to develop productive relationships with industries, philanthropists, alumni and other strategic partners as part of efforts to reduce their dependence on government funding.