Managing and Sustaining Tertiary Education in Nigeria in the Era of Fuel Subsidy Removal: Financing Challenges, Institutional Responses and Sustainable Strategies

Abstract

Tertiary education is a critical instrument for human-capital development, technological advancement, economic transformation and national development. In Nigeria, however, the sustainability of tertiary education has remained constrained by inadequate public financing, rising enrolment, deteriorating infrastructure, inflation, staff welfare challenges, industrial disputes and limited diversification of institutional revenue. The removal of the fuel subsidy in May 2023 introduced an additional layer of pressure by increasing transportation, energy, procurement, maintenance and other operating costs for tertiary institutions while simultaneously reducing the purchasing power of students and their families. This paper examines the management and sustainability of tertiary education in Nigeria in the era of fuel subsidy removal. It focuses on the implications of the policy for institutional financing, accessibility, quality assurance, staff welfare, infrastructure, research and institutional management. The paper adopts a conceptual and documentary review approach, drawing on government documents, international education-financing reports and relevant Nigerian literature. The discussion indicates that subsidy removal creates both financial pressures and an opportunity for restructuring public expenditure and tertiary education financing. Existing mechanisms such as the Tertiary Education Trust Fund (TETFund), the Nigeria Education Loan Fund (NELF), institutional internally generated revenue, research grants, partnerships and private-sector investment can contribute to sustainability when appropriately designed and transparently managed. The paper argues that sustainable tertiary education requires a balanced financing framework that combines predictable government funding, targeted student support, institutional financial autonomy, diversified revenue, stronger accountability and strategic partnerships. It concludes that sustainability should not depend exclusively on transferring rising costs to students; rather, institutions and governments should develop financing arrangements that protect equitable access while maintaining educational quality. Existing literature and policy documents indicate that these pressures affect institutional operations as well as student affordability. Based on the discussion, the recommendations are made among others that government should maintain predictable core funding for public tertiary institutions rather than relying exclusively on intervention funds.