The Impact Of Tuition Fees On Students’ Enrollment In Al-Hikmah University

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The Impact Of Tuition Fees On Students’ Enrollment In Al-Hikmah University

Chapter One


1.1 Background of the Study

Over the course of the past few decades, the cost of the higher education at public colleges and universities has risen rapidly. Adjusting for the availability of state and federal financial aid, growth in the cost of higher education has outpaced inflation and even health care. The rise in tuition has been driven by a number of factors, including a pervasive trend in the use of cost offsetting in public higher education (John Stone, 2004), and real and even nominal declines in appropriations due to state revenue short falls (Koshal & Koshal, 2000; Rizzoo & Ehrenberg, 2003).

In Nigeria, the federal universities still maintain a ‘no tuition fees’ policy. However, the state and private universities charge tuition fees which have increased tremendously in recent times. Due to limited available capacity and resources at the disposal of the institutions and government the federal universities have not been able to admit all qualified students. A substantial percentage of these students are admitted into the universities which charge tuition fess/other charges. This is because these institutions operate in an economy characterized by high inflation rates and are profit oriented. The resultant effect has been a decline in university enrolment by poor households. According to Johnstone (2007) and Sanyal and Martins (2006). The tuition fee aspect of the educational financing reforms amongst others on the need to improve public finances as placed a significant pressure on household finance through increase in out-of-pocket expenditure and created financial barriers among households. Developing a better qualified and employable individual by running programs that provides students with tools for entering the workplace ensuring demonstrate capacity for innovation and technology in the institutions for facility learning (Federal Ministry of Education, 2012). As a result, this study also wants examine the cause of tuition fees on student’s enrolments in Nigerian universities. It will help a great deal for students to proffer solutions that will reduce the effects of tuition fees on student’s enrolments in Al-Hikmah University Ilorin, Kwara State.

1.2 Statement of the Problem

Critics of the tuition fees enrolment of students has increased in the demand for and enrolment in university education. According to Aina, Oyetakin and Oshun (2009), the monumental increase in student enrollment at the primary and secondary levels of education have consequently put a lot of economic, political and social pressure on the tertiary education level with the resultant financial consequences for student’s government and economy generally.

In the same vein, studies in the socio-economic background of households in over 70% are poor and on 29% of families can live on one dollar (N157.00) or above a day, which implies that the social-economic hardship experience by the parents deprives any of access to the university education as many cannot afford to pay their children’s school fees thereby not addressing the issue of access and equity. (Ukertor, 2010; Ehiametalor, 2005 and Williams 2004), also in the area of human development, Nigeria is ranked 168th in the world (Roa, 2008).

However, Nwangwu (2001) states that when parents and their children exercise their right to choose the types of higher education to pursue, it should be understood that higher education is not free or universal or compulsory, they have the duty to provide financial support for such students.

1.3 Research Questions

The foregoing has elicited a number of questions in terms of tuition fees on student’s enrolment:

  1. What is the trend of students enrollment and tuition fees in Al-hikmah University?
  2. What are the effect of increase in tuition fees on student enrolment in Al-Hikmah University?
  3. What is the role government playing in reducing the tuition fees of such Universities?
  4. To what extent do tuition fees determine/affect student’s enrolment.

1.4 Objective of the Study

The major objective of this study is to examine the impact of tuition fees on students’ enrollment in Al-Hikmah University.

The Specific Objectives are:

  1. To examine the trend of students enrollment and tuition fees in Al-Hikmah University
  2. Examine the effect of increase tuition fees/school charges on the student enrolment.
  3. To estimate the price elasticity of the tuition fees on student’s enrollment in Al-Hikmah University.

1.5 Research Hypothesis

  • Ho: Increase tuition fees have no significant impact on students’ enrolment: Al-Hikmah University.
  • Ho: Increase tuition fees has significant effect on student’s enrolment: Al-Hikmah University

1.6 justification of the study

This study will be of great importance to all academic institutions and Al-hikmah University in particular, in implementing appropriate students’ enrollment strategies through a better understanding of the sensitivity of University education demand. Academic leaders need to understand the responsiveness of demand to tuition fees in their institutions to help them in planning and implementing correct enrolment strategies.

Another motivation for this study is the dependence of tuition revenue on enrollment. There is need to understand the importance of the demand for higher education when proposing or implementing a policy to increase tuition fees. Also, this study can help higher education decision makers in managing unexpected effects of soaring tuition fees, and in managing enrolment and tuition revenues.

Therefore, considering the importance of tuition elasticity of demand is essential in managing enrolment in academic institutions. It could be argued that using the concept of elasticity is useful in evaluating enrolment policies. In fact, elasticity is an important evaluation tool that may be used by government and academic decision makers.

1.7 Scope and Limitation of Study

This study shall involve and strictly confine itself to the economics of tuition fees and student’s enrolment in Al-Hikmah University Ilorin, Kwara State, Nigeria. This study sought to determine the effect of tuition fees on student’s enrollment between 2009 and 2017.

1.8 Organization of the Study

This study shall be divided into five chapters. This study commences with the introduction of the topic. Chapter two contains the literature review which includes its conceptual framework, theoretical framework and the sources of external debt. The research methodology is outlined in chapter three while chapter four represents and analyzes the data as well as the interpretation of the findings. Chapter five, which is the last chapter, concludes and recommends.

Chapter Five

Summary, Recommendation and Conclusion

5.0 Introduction

This chapter is to give a summary of the research; also it deals with necessary recommendation and conclusion.

5.1 Summary

The aim of this study is to examine the effect of tuition fee on students’ enrollment in Al-Hikmah University as well as determine the elasticity of students’ enrollment to change in tuition fees over the period of 2009 and 2017. The study employed Ordinary Least Squares (OLS) Technique and differentiation method to achieve the Objective. Trend Analysis for students’ enrollment and tuition fees were also conducted.

The result showed there exist a significantly negative effect of Tuition fees on Student enrollment in Al-Hikmah University, tuition fee of other private school has negative but insignificant relationship with student enrollment and gross domestic product per capita has a positive but insignificant relationship with student enrollment.

5.2 Conclusion

Consistent with the conventional notion, a negative impact of tuition fee on student enrollment is documented in this study, using tuition fee and student enrollment data from Al-Hikmah University and other private institution for 2009-2017 period. Moreover, in tandem with the general conclusion drawn in the empirical literature that demand for higher education is rather price irresponsive, the enrollment at the University have low price sensitivity.

5.3 Recommendations.

Based on the findings of this study, the following recommendations are made;

  1. Tuition fees can be increased to generate more revenue. However, the change should be minimal.
  2. The regressive impact of tuition fees should be mitigated by producing targeted scholarship, and bursaries with emphasis on low and middle income households.
  3. The federal government should consider the private university in the disbursement of petroleum fund, since they too are contributing to development of human capital in the country.

The Impact Of Tuition Fees On Students’ Enrollment In Al-Hikmah University

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The Impact Of Tuition Fees On Students’ Enrollment In Al-Hikmah University


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Frequently Asked Questions

How do institutions increase tuition revenue?

Institutions have also increased enrollment as a way of increasing tuition revenue, although it is likely that this only increases aggregate revenue from net tuition while actually leading to reductions in revenue per student. 

Why are student costs so high?

As a result of the increases in student budgets and declines in state appropriations, there have been inflation-adjusted increases in net costs for all student subgroups at two-year institutions.

How do net costs affect student achievement?

Our analysis of the patterns of student achievement makes clear that increases in net costs have a statistically significant, negative effect on student success; the effect is largest for the poorest students.

How much do higher costs affect student retention?

A $1,000 increase in net costs is associated with a 0.63 percentage point reduction in the likelihood of re-enrolling at any institution in the second year for students in the 1st EFC quartile (representing a reduction in the probability of being retained from 78.38% to 77.75%). 

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