Funmi Ogundare
The Chairman of the Nigeria Higher Education Foundation, (NHEF) and Chief Executive Officer of Kuramo Capital Management, Wale Adeosun, yesterday, urged Nigerian universities to reduce their overdependence on government funding and instead leverage alumni endowments, research grants and innovation commercialisation as sustainable sources of revenue.
Speaking at two -day Commonwealth Institute Universities Leaders Conference, in Lagos, themed, ‘Funding and Revenue Generation for Universities’, Adeosun identified tuition, alumni endowments, research grants and commercialisation of faculty innovations as the four major funding sources for universities globally.
According to him, “while tuition remains a traditional source of revenue, universities must increasingly focus on building strong alumni support systems and attracting research funding through grants written by faculty members.”
He also stressed the need for universities to commercialise ideas and innovations developed within their institutions, especially in biotechnology and technology-related fields, noting that such innovations could attract venture capital investments and generate substantial income.
The chairman noted that many Nigerian universities possess gold mines in the form of their alumni networks, adding that several young Nigerian graduates are already developing globally relevant solutions through coding and artificial intelligence.
“The alumni of universities should be the critical source of funding for schools, while government funding should only be supplementary,” he said.
He called on universities to establish professional advancement offices dedicated to alumni engagement and fundraising, describing such offices as global best practice in higher education management.
According to him, advancement offices should operate throughout the year, maintaining strong relationships with alumni and encouraging them to continually support their alma mater.
Adeosun further stated that the responsibility for driving this cultural shift rests largely on university vice chancellors, whom he described as the chief fundraisers of their institutions.
He emphasised that university leadership must prioritise giving students quality experiences during their academic years so that successful graduates would willingly contribute to the development of future generations.
“The culture of treating students as potential lifelong stakeholders must begin within the university system,” he added.
Speaking with journalists, a Professor of Strategy and Development and Director of the Commonwealth Institute, Anthony Kila, called on Nigerian universities to rethink their relationship with students and alumni as part of efforts to strengthen endowment funding and diversify revenue generation.
He stated that the era when universities depended solely on government allocations or tuition fees is no longer sustainable, noting that globally successful universities generate significant revenue from multiple streams beyond tuition.
“The aim of this conference is to allow university leaders to reflect on and explore various ways of revenue generation for universities,” he said.
He explained that the conference was designed not to copy foreign institutions such as Harvard University and University of Cambridge, but to identify solutions suited to Nigeria’s peculiar realities and opportunities.
Kila expressed optimism that participants would leave the conference with practical ideas capable of improving funding and educational standards in their institutions.
Speaking on the role of alumni endowment funds, he stressed that universities must deliberately build stronger emotional connections with students if they hope to secure future donations from graduates.
According to him, many alumni in Nigeria feel disconnected from their universities because of negative experiences during their years of study.
“Part of the reason why a lot of graduates do not respect their schools or lecturers is because they do not feel a bond. Some even feel abused or oppressed while they were there,” he said.
He noted that universities must go beyond academic teaching to nurturing, encouraging and inspiring students so they develop a sense of belonging and gratitude towards their institutions.
“You have to create students who develop the mindset to give back. Students should feel that the university and lecturers contributed positively to their lives, so they will willingly support the institution in the future,” he added.
Kila said discussions at the two-day conference would also focus on international student recruitment, attracting donors and identifying alternative streams of income for universities.
In his remarks, a Finance and Management expert, Ayo Abina, called for a comprehensive overhaul of Nigeria’s tertiary education funding structure, warning that the current system is unsustainable and incapable of delivering quality education needed for national development.
He argued that most public universities in Nigeria remain overly dependent on government allocations, unlike private institutions that operate more efficiently because they adopt cost-reflective financial models and pay closer attention to balance sheets.
According to him, Nigerian universities can no longer continue charging what he described as unrealistically low tuition fees while expecting world-class educational outcomes.
“The average tuition in many public tertiary institutions is between N50,000 and N100,000 annually, and in some state universities it is even lower. In some cases, students spend more on mobile phone data than on tuition,” he said.
Abina stressed that while education should remain accessible, the country must confront the reality that quality education comes at a cost. He proposed a gradual review of tuition fees alongside the establishment of an effective student loan system that would enable students to access education without immediate financial hardship.
