Influence of Economics of Education on Educational Policy Making in Nigeria

Abstract

This study investigates the role of the economics of education in shaping Nigeria's educational policymaking, with emphasis on the interplay between funding, labour market alignment, and equity. Using a qualitative analysis of key policy documents like the National Policy on Education (2008) and the Universal Basic Education Act (2004), and international reports, complemented by recent Nigerian budgetary and employment data, the paper applies the “3Es” framework (effectiveness, efficiency, and equity) to evaluate policy outcomes. Findings reveal persistent underinvestment, structural inefficiencies, and a misalignment between education outputs and labour market demands, resulting in high graduate unemployment and inequities in access. Beyond diagnosing these gaps, the paper proposes a resource-alignment model that integrates manpower forecasting, targeted investments, and accountability mechanisms. By situating Nigeria's policy experience within global and regional benchmarks, the study contributes a framework for enhancing efficiency and inclusiveness in education financing and planning.