ABSTRACT

 This study examines the impact of economic recession on the education sector in Nigeria. Ex Post Facto Research Design was adopted in this study to explore cause and affect relationships between the relevant variables. The study measured economic recession using indices such as industrial productivity level, interest rate and unemployment rate. Education expenditure was used to capture the education aspect. The study shows the presence of a long run relationship between educational expenditure, industrial productivity level, interest rate and unemployment rate as the Johansen cointegration test specified. The empirical findings divulged that only industrial productivity level wasfound not to have influence on education sector indexed using educational expenditure. While interest rate significantly and positively increases or affect education expenditure. Unemployment rate was found to have positive effect on education expenditure in the short run, though its impact is insignificant. The study recommends that government should begin the implementation of the United Nations Education, Scientific and Cultural Organization’s recommendation of26 percent ofa country’s annual budget allocation to the educational sector and government at the three tiers should increase the vote allocatedfor infrastructural development and reconstruction in educational institutions. Government should also supportpublic schools with financial grants as this will enable the school administration to meet up with the demand ofboth students and staff. Keywords: Economic Recession, Education Expenditure, Unemployment Rate, Budgetary Allocation.