Education Expenditures and School Enrollment in Africa: Illustrations from Nigeria and other SANE Countries

Abstract:

Using panel data of African countries from 1990 to 2002, this paper studies the relationship between government expenditure on education enrolments, with illustration from Nigeria and other SANE (South Africa, Algeria, Nigeria, and Egypt) countries at the primary and secondary school levels. The results show that government expenditure on education has a positive and significant direct impact on primary and secondary education enrolment rates. Among the SANE, Nigeria has the greatest positive influence on increasing both primary and secondary education enrolment rates. The paper also finds that other policy interventions, such as consolidating and sustaining democracy, accelerating national income, and international community fulfilling its aid promises to Africa, can also be helpful in moving African countries (including the SANE) toward the Millennium Development Goals (MDGs). As such, higher expenditure alone is not sufficient to achieve the MDGs or to attain higher quantum and quality of human capital.