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The Oracle

The Oracle: Imperatives of Strategic Economic Reforms in Nigeria’s Quest for Sustainable Economic Development (Pt. 4)

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By Prof Mike Ozekhome SAN

INTRODUCTION

The last installment of this intervention dwelt on the following themes: institutional reforms, good governance, corruption, weak institutions, the judiciary and red-tapism, others were infrastructural development for power, transportation, human capital development, poor education, insecurity/instability, and policy inconsistencies. Today’s feature recommends a range of initiatives which I believe will make the desired difference in our fortunes. These include project financing, economic diversification and public-private partnerships. Enjoy.

RECOMMENDATIONS

To achieve sustainable economic development and transform Nigeria into a resilient and prosperous economy, bold and deliberate actions are required. These recommendations focus on addressing systemic challenges, leveraging existing opportunities, and fostering a development trajectory that balances economic growth, social inclusion, and environmental sustainability.

PROJECT FINANCING

The multi-billion-dollar funding gap for infrastructure projects remains an underlying concern to the achievement of economic prosperity in Nigeria. While alternative means such as sovereign bonds, equities, bilateral loans, multilateral loans, commercial loans, inter alia were being pursued, project financing remains a key driver for infrastructural development in Nigeria. (Young Grace Chinyere, Understanding The Legal Fundamentals Of Project Finance Contracts <https://www.ajol.info/index.php/naujilj/article/view/136316> Nnamdi Azikiwe University Journal of International Law and Jurisprudence (2014) 5). Project financing helps finance new investment by structuring the financing around the project’s operating cash flow and assets, without additional sponsor guarantees. (International Finance Corporation, Project Financing in Developing Countries <https://documents1.worldbank.org/curated/en/952731468331147256/pdf/multi0page.pdf> ). Thus, the technique can alleviate investment risk and raise finance at a relatively low cost, to the benefit of sponsor and investor alike. Furthermore, in project financing, a legally independent project company is created to own and invest in the project, and the project debt is structured without recourse to the sponsors. Here, project cash flows become the essential means for repaying the lender, making verifiability of cash flows crucial. (Krishnamurthy V. Subramanian, Frederick Tung, Law and Project Finance, Journal of Financial Intermediation, (2016) 25, 154-177 <https://www.sciencedirect.com/science/article/abs/pii/S1042957315000261>).

Project finance offers several advantages for infrastructure development. These include risk sharing amongst stakeholders, whereby sponsors spread the risks through a network of security arrangements, contractual agreements, and other supplemental credit support to other financially capable parties willing to assume the risks. (APMG International, ‘Project Finance — Benefits and Limitations’ <https://ppp-certification.com/ppp-certification-guide/5-project-finance-%E2%80%94-benefits-and-limitations>) Also, project financing helps decide how to manage the free cash flow that is left over after paying the operational and maintenance expenses and other statutory payments, extends debt capacity, and enhances competitive positioning within the market.

Although project finance is a complex financing mechanism, it is particularly successful in economies with weak financial and legal systems.( Johann Lübbe, Project Finance as a driver of economic growth in Africa, <https://journals.co.za/doi/abs/10.10520/EJC-653f68275>). Various companies have been created with a core focus is the facilitation and structuring of project financing arrangements. These companies provide invaluable support to project sponsors, lenders, and other stakeholders in bringing large-scale infrastructure and development initiatives to fruition. Worthy of note in this regard is Africa50, an infrastructure investment platform that focuses on medium to large-scale infrastructure projects that have a significant development impact while offering an appropriate return to investors, which makes early-stage equity investments to fund project preparation to get projects investment-ready, providing project finance using a private equity model. (Cities Climate Finance Leadership Alliance, Africa50 Project Development <https://citiesclimatefinance.org/project-preparation-resource-directory/africa50-project-development#:~:text=Africa50%20Finance%20provides%20project%20finance,and%20the%20African%20Development%20Bank.> ).

The use of project finance must be encouraged by the Nigerian government for the provision of infrastructure, spanning from energy infrastructure to digital infrastructure. However, a robust legal framework is imperative for project financing, as investor confidence, particularly in this aspect, is contingent upon a high degree of credibility. This is also necessitated by the fact that in developing economies, project finance is often operated within a less stringent regulatory environment, with a primary focus on stimulating economic growth and job creation.( Itoma Lux, Project finance in the DevelopED VS DevelopING world? (Similarities & Differences) <https://www.linkedin.com/pulse/project-finance-developed-vs-developing-world-similarities-/>). The establishment of security interests, comprehensive contractual agreements, and strict adherence to regulatory frameworks, risk mitigation, and long-term viability constitute fundamental legal issues that should be addressed by project finance laws. (Financely, Project Finance Legal Considerations: Key Issues and Best Practices <https://blog.financely-group.com/project-finance-legal-considerations/>)

NO MAJOR LAW GOVERNING PROJECT FINANCING

Nigeria presently lacks a law that applies to project financing exclusively. However, several key laws and regulations govern project financing transactions such as the Infrastructure Concession Regulatory Commission which regulates public-private partnerships. Additionally, the Companies and Allied Matters Act, the Investment and Securities Act, and the Securities and Exchange Commission (SEC) regulate corporate and investment aspects. Sector-specific regulations, such as the National Electricity Regulatory Commission (NERC) regulations and the Petroleum Industry Act (PIA), apply to projects in their respective industries.

To stimulate economic growth and development, Nigeria must implement comprehensive policy reforms to optimize project financing. These reforms should focus on creating a conducive environment for both domestic and foreign investment. By streamlining regulatory processes, reducing bureaucratic hurdles, and enhancing transparency and accountability, the government can attract significant private sector investment. Furthermore, the government should consider establishing specialized financial institutions to provide long-term financing for infrastructure projects.

The significance of product financing in Nigeria cannot be overstated in light of the continent’s imperative to strategically invest in key Sustainable Development Goal areas. These areas encompass education, energy, productivity-enhancing technologies and innovations, as well as productive transport infrastructure.

DIVERSIFICATION OF THE ECONOMY

Economic sustainability employs practices that support long-term economic growth without negatively impacting social, environmental, and cultural aspects of the community. Such an economy is structured to ensure that the current use of resources minimizes the level of harm to the future use of resources (Imperatives, S. (1987). Report of the World Commission on Environment and Development: Our common future. United General Assembly of the United Nations, New York, United States <https://sustainabledevelopment.un.org/content/documents/5987our-common-future.pdf>). This is essential as it bears on the safety of resources for future generations. The over-dependence on oil in the Nigerian economy goes against the very principle of sustainability. It is imperative that the Nigerian government prioritizes policies that encourage investment and growth in non-oil sectors, thereby widening the nation’s economic base.

Economic diversification involves broadening the range of economic activities, encompassing both production and distribution (Anyaehie, M. and Areji, A. (2015) Economic Diversification for Sustainable Development in Nigeria. Open Journal of Political Science, 5, 87-94. doi: 10.4236/ojps.2015.52010). While it may not necessarily lead to immediate increases in output, it significantly contributes to economic stabilization by reducing reliance on a single sector or industry. Nigeria’s persistent struggle with economic diversification stems from a myriad of factors. The “Dutch disease” effect, whereby resource booms lead to the neglect of non-resource sectors, has been a significant impediment. Thus, high oil revenue raises exchange rates, promotes an adverse balance of payments when prices fall, and reduces the incentive to risk investment in non-oil sectors like agriculture and manufacturing. The nation’s history is replete with instances where short-term spending pressures have outweighed long-term development goals, resulting in suboptimal resource allocation. Additionally, the challenges associated with managing resource revenues, including weak institutions and corruption, have hindered the ability to invest in productive sectors. These factors, coupled with a lack of institutional capacity, have collectively hindered Nigeria’s efforts to diversify its economy and achieve sustainable economic growth.

NIGERIA MUST ADOPT THREE KEY PRINCIPLES

To successfully pursue industrialization, Nigeria should adopt three key principles:
1. State intervention should be targeted and limited to addressing market failures, such as infrastructure deficits or information asymmetries;

2. Industrial policies should prioritize export-oriented industries, which can generate foreign exchange and enhance global competitiveness;

3. Policies designed to promote domestic industries must maintain a focus on competition and accountability, avoiding protectionist measures that can stifle innovation and efficiency.

By adhering to these principles, Nigeria can create a conducive environment for industrial growth and sustainable economic development. Nigeria’s economic trajectory hinges on its ability to leverage its natural resources and diversify its economy. While the nation possesses abundant oil reserves, it is imperative to move beyond a resource-dependent model and embrace value-added activities. The digital economy also presents a promising avenue for Nigeria’s economic transformation. The rapid growth of the telecommunications and IT services sectors, coupled with a young and tech-savvy population, positions Nigeria to harness the potential of the digital age. By investing in digital infrastructure, fostering innovation, and promoting digital literacy, Nigeria can overcome traditional development challenges and emerge as a global digital powerhouse.

PUBLIC-PRIVATE PARTNERSHIPS

Public-private partnerships (PPPs) are also a significant driving force for economic sustainability. With PPPs, the government can leverage private resources and skills to meet the growing demand for growth and even employment. However, for effective implementation, the government must establish robust legal and institutional frameworks for public-private partnerships and be able to identify and select suitable projects, conduct transparent tenders, structure comprehensive contracts, and implement effective oversight mechanisms to ensure the successful execution of PPP projects.

Since 2019, Africa has significantly advanced its efforts to identify and train infrastructure experts throughout Africa. The Africa Project Finance Program initiative is training infrastructure finance and public-private partnership specialists who will play a key role in shaping sustainable infrastructure financing solutions for the continent. However, there is a need for PPP strategies to be based on knowledge of the inherent challenges and limitations that the African market faces ( Johnson Mwawasi Kilangi, Address today’s challenges to build a sustainable long-term PPP strategy for Africa <https://blogs.worldbank.org/en/ppps/address-todays-challenges-build-sustainable-long-term-ppp-strategy-africa> ). Well-structured and effectively implemented PPPs can create social value through on-time and on-cost delivery, generating efficiency gains and offering innovation in project design, incorporation of global expertise, and accessing new sources of capital. (To be continued).

THOUGHT FOR THE WEEK

“Human rights are not only violated by terrorism, repression or assassination, but also by unfair economic structures that creates huge inequalities”. -Pope Francis.

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The Oracle

The Oracle: The University As Catalyst for Societal Development (Pt. 6)

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By Prof Mike Ozekhome SAN

INTRODUCTION

The last episode of this intervention examined the following core functions of universities as tools for societal development; character formation and value inculcation; research and innovation; economic development; civic engagement and social responsibility; cultural and global influence; social mobility and equity. This week, we shall continue with same theme-focusing on political development; cultural and social transformation. We will thereafter outline the challenges posed to those roles by such factors as underfunding and infrastructural decay and academic brain-drain. Enjoy.

CORE FUNCTIONS OF UNIVERSITIES AS TOOLS FOR SOCIETAL DEVELOPMENT (CONTINUES)

Social Mobility & Equity

One of the most profound contributions of the university to societal development is its role in advancing social mobility and equity. At its best, the university serves as a ladder, a structure through which individuals can ascend beyond the limitations imposed by birth, background, or circumstance. For those born into poverty, marginalization, or restricted opportunity, the gates of a university are not merely doors into lecture halls—they are portals to a transformed life. Education at this level arms the disadvantaged with skills, credentials, and networks that can dramatically alter the trajectory of both their personal fortunes and the fortunes of the communities from which they come.

Empirical evidence substantiates this reality. Research by The Sutton Trust reveals that young people from low-income homes who attend university are four times more likely to achieve upward social mobility than their peers who do not. The study further notes that while elite institutions play a role, even less selective universities are critical engines of social advancement, enrolling large numbers of disadvantaged students who go on to secure higher-paying roles and greater social standing. This shows that the university does not merely reproduce privilege. It has the capacity to disrupt it, provided it remains accessible and responsive to the needs of wider society.

Beyond individual ascent, universities contribute to societal equity by narrowing class-based disparities. They create a relatively level platform where students from diverse backgrounds can compete on the same intellectual field. In this regard, the OECD report Equity in Education: Breaking Down Barriers to Social Mobility emphasizes that when educational systems are designed to promote fairness, students from different socio-economic backgrounds achieve more comparable outcomes in learning, well-being, and professional life.

This is not only a moral good; it is a civic necessity. A society where upward mobility is possible is a society less fractured by resentment, instability, and despair.

In the wider sense, the university’s pursuit of equity strengthens the social fabric itself. Graduates who have risen through the crucible of disadvantage often become symbols of possibility for their communities. Their success challenges fatalistic narratives that consign the poor to perpetual poverty, inspiring others to strive. Furthermore, by producing leaders, innovators, and professionals from diverse backgrounds, universities ensure that the corridors of power, policy, and influence are not monopolized by the privileged few, but reflect the pluralism of the society they serve.

In sum, the university as a catalyst for social mobility and equity is not a theoretical ideal but a demonstrable fact. It provides the opportunity for disadvantaged individuals to rise, contributes to a fairer society, and in doing so, strengthens the moral, economic, and political foundations of a nation. As long as universities remain committed to widening access and supporting success across socio-economic divides, they will continue to be engines not merely of knowledge, but of justice and transformation.

Political Development

One of the most profound contributions of the university to societal development lies in its role as a crucible for political development. A healthy society does not stumble into good governance; it must intentionally raise leaders, nurture public servants, train policy experts, and instill civic consciousness in its citizens. The university is the most natural and potent environment for this training because it combines intellectual discipline with exposure to real societal challenges. Within its walls, young minds are sharpened not only by textbooks but by debates, student politics, and the constant testing of ideas against reality. Thus, the university is not merely a factory of professionals but a nursery of statesmen.

Universities function as training grounds for political leaders, administrators, and policy thinkers who later become the architects of national progress (Time, “It’s Time Africa Had Its Own Harvard.’ Inside a University Training African Leaders to Solve African Problems” https://time.com/5603886/african-leadership-university-mauritius-fred-swaniker/). Institutions such as the African Leadership University (Mauritius) and Senghor University (Egypt) were designed with this vision in mind. The former grooms young Africans to tackle pressing issues like climate change, governance, and entrepreneurship by applying knowledge directly to leadership challenges. The latter, founded in 1990, deliberately trains cadres in public administration, international cooperation, and policy development to equip Africa with leaders capable of addressing its development needs. These examples reveal that universities are more than academic sanctuaries; they are political incubators shaping the competence and vision of future governance.

Equally important, universities act as laboratories of democracy and civic activism. History demonstrates that some of Africa’s greatest liberators and political thinkers first tasted civic responsibility in the university environment. The University of Fort Hare in South Africa stands as a monumental example (Wikipedia, “University of Fort Hare” https://en.wikipedia.org/wiki/University_of_Fort_Hare?utm). It produced Nelson Mandela, Oliver Tambo, Robert Sobukwe, Julius Nyerere, and Robert Mugabe—figures who later became the faces of African liberation and governance Fort Hare was not simply an academic space; it was a political furnace where the ideas of freedom, equality, and justice were hammered into steel. This legacy underscores that the democratic consciousness of nations is often first awakened in their universities.

In contemporary Africa, universities continue to serve as strongholds for human rights, democracy, and civic resilience. The University of the Western Cape has institutionalized this role by hosting the African Universities Hub for Human Rights (AUH). Through summer schools and training programs, it equips human rights defenders and civic actors with strategies to strengthen democracy and resist authoritarian drift.

In sum, the university plays a catalytic role in political development by producing leaders, sharpening public administrators, cultivating policy expertise, and incubating civic consciousness. Societies that neglect this function risk raising generations of technically skilled graduates but politically barren citizens.

Cultural and Social Transformation

Universities are not merely academic institutions; they are crucibles of cultural and social transformation, playing powerful roles in shaping values, identities, and movements that redefine societies. Through their educational and research activities, universities nurture and reinforce social norms. Subjects like sociology, anthropology, and gender studies help students understand societal dynamics; whether appreciating the need for democratic governance or confronting entrenched caste and class structures, thus guiding reflection and change (https://teachers.institute/higher-education-its-context-and-linkages/higher-education-social-stability-change/? > Accessed on 9th September, 2025). Institutions also foster identity formation through community rituals, academic traditions, and public intellectualism. Universities that actively promote diversity and inclusivity further shape institutional culture. For example, the University of Rijeka in Croatia has implemented a Gender Equality Plan (2021–2025) (https://uniri.hr/wp-content/uploads/2024/10/University-of-Rijeka-Gender-Equality-Plan-2021-2025_signature.pdf> Accessed on 9th September, 2025), embedding gender perspectives across its curriculum, institutional policies, and organizational culture. Similarly, Nelson Mandela University in South Africa has made deliberate efforts to normalize female leadership, appointing women to key roles such as Vice-Chancellor, Chancellor, Deputy Vice-Chancellor, and most deanships—demonstrating how universities can lead shifts in cultural expectations and identity norms (https://iol.co.za/news/south-africa/2025-01-14-nelson-mandela-university-leads-gender-transformation-in-academia/> Accessed on 9th September, 2025).

Across the globe, universities have also become battlegrounds and incubators for gender equality and inclusion. Times Higher Education’s 2025 list of top universities advancing the UN SDG 5 (gender equality) includes institutions like Walailak University in Thailand, which actively supports this (https://www.timeshighereducation.com/student/best-universities/top-universities-tackling-gender-equality? > Accessed on 9th September, 2025). Charles Darwin University in Australia shows a different but equally impactful example: it partnered with Our Watch—a national violence prevention organization—to eliminate gender-based violence and promote gender equality across its campuses through curriculum updates, staff training, revised policies, and outreach programs (https://www.couriermail.com.au/subscribe/news/1/?sourceCode=CMWEB_WRE170_a_GPT&dest=https%3A%2%2Fwww.couriermail.com.au%2Fnews%2Fcdu-partners-with-our-watch-to-combat-gender-violence-and-promote-equality-across-campuses%2Fnews-story%2F9d46cdfc400682895c08f1cd11fa01aa&memtype=anonymous&mode=premium&v21=GROUPA-Segment-2-NOSCORE> Accessed on 9th September, 2025). In Africa, Honoris United Universities has played a notable role in promoting gender equity across its campuses and alumni network. Their gender-focused programs, including a virtual bootcamp that engaged 540 women entrepreneurs, and sustained efforts to increase female participation in STEM, demonstrate the power of inclusive education to catalyze socio-economic transformation (https://honoris.net/education-for-impact/community-initiatives/gender-equity-pan-african-initiatives-for-catalyzing-change/ > Accessed on 9th September, 2025).

Universities are also frequently epicenters of protest, resistance, and reform. More recently, European campuses have become rallying grounds for political expression, as seen in widespread protests against the Gaza war in 2024 (https://www.lemonde.fr/en/international/article/2024/05/17/protests-against-gaza-war-take-hold-across-european-campuses_6671727_4.html> Accessed on 9th September, 2025). Indian higher education has produced thought leaders such as Dr. B.R. Ambedkar and Medha Patkar, who used their university experiences as platforms for social justice and environmental activism, demonstrating how campuses can nurture reform-minded leaders committed to equity and democracy (https://teachers.institute/higher-education-its-context-and-linkages/universities-social-change-leadership/google_vignette> Accessed on 8th September, 2025).

Taken together, these examples demonstrate that universities wield profound influence beyond academics. They shape societal values, challenge entrenched norms, and foster identity through scholarship and inclusive culture. They promote social justice and gender equality via proactive institutional policies, outreach, and partnerships. Most importantly, they serve as vibrant spaces for social movements and reform, giving rise to leaders and movements that transform nations.

CHALLENGES HINDERING UNIVERSITIES AS CATALYSTS

Underfunding and Infrastructural Decay
In the grand drama of societal progress, the university ought to be the altar where knowledge is forged, innovation is sparked, and ethical leadership is nurtured. Yet, this noble sacrament is desecrated when the institutions themselves are starved, starved of funds, starved of capacity, starved of dignity. Underfunding is not a mere budgetary gap; it is the severance of the lifeline that binds society’s promise to its tomorrow.

Across Nigeria, the scars of neglect are unmistakable. At the University of Ibadan, once a temple of learning, lecture theatres now bear cracked walls, peeling paint, and leaking roofs; roofs under which the flicker of erudition struggles to glow. Trenchard Hall, symbol of legacy, is now more memorial than monument. Students endure broken seats, dim lighting, erratic power that forces reliance on noisy generators, and water scarcity that sullies hygiene. The libraries (vaults of intellect) are diminished by antiquated facilities and limited spaces. This is no allegory. It is the everyday reality (Independent, “University Of Ibadan: A Legacy Under Threat Of Decaying Infrastructure” https://independent.ng/university-of-ibadan-a-legacy-under-threat-of-decaying-infrastructure/?utm).

Brain Drain of Academics

The university, ideally a crucible of ideas, innovation, and national advancement, is being hallowed out, not by design, but by neglect. The exodus of academics from Nigeria, committed scholars, researchers, lecturers emigrating in search of sustenance and scholarly dignity, is not a mere migration. It is a hemorrhage of the mind and conscience. A man of the world must call this what it is: a betrayal of potential, a systemic failure, and a moral wound.

In Nigeria, the push factors are undeniable: chronically low salaries, delayed allowances, incessant strikes, insecurity, and the corrosion of academic autonomy all conspire to drive brilliant minds abroad. Lecturers earning a mere ₦195,000 monthly (around US $195), while their peers in Niger or Chad earn more, demonstrate the absurd disparity that compels intellectual flight (Dateline, “The Persistent Brain Drain in Nigeria’s University System” https://dateline.ng/the-persistent-brain-drain-in-nigerias-university-system/?utm). The weight of poor compensation, compounded by delayed Earned Academic Allowances (EAA), overwhelm moral appeals; the youth of academia (the most promising) flee when their dignity is denied. (To be continued).

THOUGHT FOR THE WEEK

“Education is the most powerful weapon which you can use to change the world” – Nelson Mandela

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The Oracle

The Oracle: The University As a Catalyst for Societal Development (Pt. 5)

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By Prof Mike Ozekhome SAN

INTRODUCTION

The last instalment of this treatise examined the theoretical frameworks and models linking university education to Societal Developments; Modernization Theory; Social Learning Theory; Dependency Theory and Knowledge Economy Theory. This week’s feature continues same theme with the Tripple-Helix Model. Later, we shall examine The Role of Universities as Tools for Societal Development. Enjoy.

CORE FUNCTIONS OF UNIVERSITIES AS TOOLS FOR SOCIETAL DEVELOPMENT (CONTINUES)

Character Formation and Values

One of the most profound contributions of the university to societal development lies not in laboratories or lecture halls, but in the shaping of character and the cultivation of values. A nation does not collapse because it lacks resources; it collapses because it lacks men and women of integrity to administer those resources. Thus, while universities are often celebrated as centers of intellectual training, their deeper and more enduring mandate is to mold individuals whose lives are governed by honesty, responsibility, discipline, and accountability. A degree may secure a desk, but only character secures trust—and trust is the currency of every lasting institution.

The university, when functioning at its highest ideal, is not merely a dispenser of certificates but a forge of virtue. It is a place where the youthful energy of students is refined into principled citizenship. Within its walls, young men and women are exposed not only to technical skills but also to systems of discipline, codes of conduct, and ethical debates that prepare them to lead with conscience as well as competence. In shaping values such as respect for truth, fidelity to promises, and reverence for justice, the university forms the bedrock upon which any sustainable development must rest. Research confirms that this role is neither abstract nor ornamental. A mixed-method study on Iranian universities found that moral character—encompassing virtues, social responsibility, and ethical learning—significantly influenced both academic performance and civic maturity. The study concluded that fostering moral character within the university environment directly enhances students’ contributions to society.

Similarly, the Jubilee Centre for Character and Virtues at the University of Birmingham emphasizes that higher education must cultivate “holistic character development” as a foundation for societal flourishing. Their Framework for Character Education in Universities stresses that virtues like integrity, resilience, and empathy are not optional add-ons, but essential outcomes of a complete education.

The implication is clear: societies that neglect character education, even while producing skilled professionals, risk raising a generation of clever rogues—men and women who know how to manipulate systems but not how to steward them. Corruption, injustice, and exploitation are rarely the fruits of ignorance; they are the products of unformed character. By contrast, a university that deliberately prioritizes moral formation produces leaders who are trustworthy, citizens who are responsible, and professionals who recognize that true progress is not measured merely in profit, but in justice, dignity, and accountability.

In this sense, the university is a moral compass for the nation. It does not simply transmit knowledge—it transmits values that safeguard the soul of society. And where such values are missing, no amount of technical expertise can prevent decay. Therefore, strengthening universities in their role as cultivators of character is not just an academic necessity; it is a national imperative.
Research and Innovation

The university as aforementioned is a hub for research and innovative discoveries that further mankind in different spheres. Research promotes critical and analytical thinking leading to new knowledge and better understanding of one’s field of study. Further, the significance of research is compounded by the fact that it often leads to innovation which in turn contributes to a growing national economy. The university system in basic and applied researches has made significant contributions to the world/field of science, technology and policy. Student and educators alike, involve themselves in deep research amounting advances in important fields such as the medical field, helping with the formulation of vaccines and medications as well as helping to deepen the understanding and understanding of diseases, bringing us a step closer to formulating cures.
Courses such as robotics have aided in the creation of machines which have helped in the development of the society and nations at large by allowing for ease and speed in certain tasks, even in the creation of Artificial Intelligence which now aids research amongst a number of things in vast fields of study.
The university in providing the intellectual foundation, empirical evidence, and innovative ideas necessary for informed decision-making and progress, allows for innovative thinking amongst humans aiding the development of societies in policy formulation that better the coexistence of nations and societies.
Universities often provide resources and support for both faculty and students to develop entrepreneurial skills and launch new ventures, including spin-off companies. They administer research grants and funding opportunities to support faculty in exploring new research ideas and developing innovative solutions, thereby encouraging innovation and creative thinking.

Economic Development
The university system aids economic development through the creation of job opportunities in its various faculties. It allows for employment of teachers, researchers, even down to construction workers and cleaning services, thereby reducing unemployment rates in societies. The University is usually of hub of commerce and serves as a local economic stimulus through the creation of demand by the students and staff as well the institution itself spending on local goods and services, and by increasing the “supply side” of the economy through the development of human capital (skilled graduates) and innovation (research and technology). These contributions enhance the local workforce, attract new businesses, help existing ones innovate, and generate a multiplier effect from increased local expenditures. They also attract students from other region who will be in need of housing, food and other services encouraging the building of infrastructure.

This directly create the need for the establishment of businesses necessary for the smooth running of the university, such printing businesses, restaurant, demands which are then supplied by the local populace of the location of the university, reducing unemployment in the area and serving as an opportunity for a sustainable source of income for the local populace.
Human capital development is another major way in which universities contribute to economic growth. By educating a skilled and adaptable workforce, universities equip individuals with the knowledge and competencies needed to meet the demands of an evolving labor market. Regions with strong university systems tend to attract employers looking for a well-educated workforce, which can lead to higher wages, increased productivity, and greater economic competitiveness.
Furthermore, universities create an opportunity for regional development. As aforementioned, due to sudden demand in the region due to the establishment of the university, there is attraction talents, influx of entrepreneurs as well as the building of infrastructure, this inevitably urbanizes the region. This urbanization transforms economically depressed regions into vibrant innovation hubs, demonstrating the strategic importance of higher education institutions in shaping regional economies.

1. Civic Engagement and Social Responsibility
Universities affect not only the intellectual prowess of individuals but engages their sense of civic engagement and social responsibility. Being an institution of higher learning it focuses not only on being an incubators for critical thinking, but encourages ethical reasoning as well as social awareness. Through the structured academic programs, extracurricular activities, and community-based initiatives, universities help students understand their role within society and encourage them to become active and responsible citizens.
On one hand, many universities partner with local governments, non-profits, and schools to address pressing community needs. These partnerships often include joint research projects, educational outreach programs, and economic development initiatives. By aligning academic resources with social impact goals, universities demonstrate a model of institutional responsibility that extends beyond campus boundaries, and serve as first hand examples to the students. Universities provide a platform for democratic dialogue and sharing of ideas, through events, publications, or reports to policy makers.

Through the encouragement of unions for students, the university allows for a civic, social and political consciousness. The conduction of electoral campaigns, elections as well as other student union affairs such as altruistic activities, the university helps to fight civic apathy and awakens the sense of responsibilities of individuals.

The universities being such a diverse community exposes individual to an innumerable number of cultural backgrounds and ideologies, and nurture a broader worldview in the minds of individuals as well as cultivates tolerance and empathy. This is a necessary attribute for the creation of a society of responsible citizens. The diversity forces individual to confront their biases and see things from different viewpoints and broaden their knowledge of issues and concepts. It allows for the learning of peaceful exchange alternatives ideas, laying the groundwork for more inclusive and equitable civic participation.

Universities significantly influence civic engagement and social responsibility by shaping students’ values, knowledge, and actions. Through academic programs, community partnerships, and diverse campus experiences, they prepare individuals to participate meaningfully in public life.

2. Cultural and Global Influence
Modern universities are a power force for cultural sharpening as well as preservation and exerting global influence. Universities contribute significantly to how societies develop, preserve, and share their cultural identities. The presence of students from diverse cultural backgrounds enriches campus environments, it allows for cross-cultural dialogue and provides the opportunity for deepened understanding of diverse cultural experiences among domestic students and communities. Universities often engage with the local community, serving as important partners in regional growth and cultural activities.

Culturally, universities serve as custodians and creators of knowledge, history, art, and language. They preserve cultural heritage through research, archives, museums, and literature while simultaneously pushing cultural boundaries through new forms of artistic and academic expression. Faculties of humanities, fine arts, and social sciences explore cultural practices, critique societal norms, and inspire reflection and change. Through lectures, exhibitions, performances, and publications, universities influence public discourse and help shape national and international cultural narratives.

Universities are key contributors to cultural vitality and global influence. They promote cultural preservation and innovation, foster international understanding, and serve as bridges between nations and peoples. As the world faces increasingly complex and interconnected challenges, the cultural and global role of universities becomes not just beneficial but essential for a more cooperative and enlightened future.

3. Social Mobility & Equity
One of the most profound contributions of the university to societal development is its role in advancing social mobility and equity. At its best, the university serves as a ladder, a structure through which individuals can ascend beyond the limitations imposed by birth, background, or circumstance. For those born into poverty, marginalization, or restricted opportunity, the gates of a university are not merely doors into lecture halls—they are portals to a transformed life. Education at this level arms the disadvantaged with skills, credentials, and networks that can dramatically alter the trajectory of both their personal fortunes and the fortunes of the communities from which they come.

Empirical evidence substantiates this reality. Research by The Sutton Trust reveals that young people from low-income homes who attend university are four times more likely to achieve upward social mobility than their peers who do not. The study further notes that while elite institutions play a role, even less selective universities are critical engines of social advancement, enrolling large numbers of disadvantaged students who go on to secure higher-paying roles and greater social standing. This shows that the university does not merely reproduce privilege. It has the capacity to disrupt it, provided it remains accessible and responsive to the needs of wider society.

Beyond individual ascent, universities contribute to societal equity by narrowing class-based disparities. They create a relatively level platform where students from diverse backgrounds can compete on the same intellectual field. In this regard, the OECD report Equity in Education: Breaking Down Barriers to Social Mobility emphasizes that when educational systems are designed to promote fairness, students from different socio-economic backgrounds achieve more comparable outcomes in learning, well-being, and professional life.

This is not only a moral good; it is a civic necessity. A society where upward mobility is possible is a society less fractured by resentment, instability, and despair.

In the wider sense, the university’s pursuit of equity strengthens the social fabric itself. Graduates who have risen through the crucible of disadvantage often become symbols of possibility for their communities. Their success challenges fatalistic narratives that consign the poor to perpetual poverty, inspiring others to strive. Furthermore, by producing leaders, innovators, and professionals from diverse backgrounds, universities ensure that the corridors of power, policy, and influence are not monopolized by the privileged few, but reflect the pluralism of the society they serve.

In sum, the university as a catalyst for social mobility and equity is not a theoretical ideal but a demonstrable fact. It provides the opportunity for disadvantaged individuals to rise, contributes to a fairer society, and in doing so, strengthens the moral, economic, and political foundations of a nation. As long as universities remain committed to widening access and supporting success across socio-economic divides, they will continue to be engines not merely of knowledge, but of justice and transformation.

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The Oracle

The Oracle: The University As a Catalyst for Societal Development (Pt. 5)

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By Prof Mike Ozekhome SAN

INTRODUCTION

The last instalment of this treatise examined the theoretical frameworks and models linking university education to Societal Developments; Modernization Theory; Social Learning Theory; Dependency Theory and Knowledge Economy Theory. This week’s feature continues same theme with the Tripple-Helix Model. Later, we shall examine The Role of Universities as Tools for Societal Development. Enjoy.

CORE FUNCTIONS OF UNIVERSITIES AS TOOLS FOR SOCIETAL DEVELOPMENT (CONTINUES)

Character Formation and Values

One of the most profound contributions of the university to societal development lies not in laboratories or lecture halls, but in the shaping of character and the cultivation of values. A nation does not collapse because it lacks resources; it collapses because it lacks men and women of integrity to administer those resources. Thus, while universities are often celebrated as centers of intellectual training, their deeper and more enduring mandate is to mold individuals whose lives are governed by honesty, responsibility, discipline, and accountability. A degree may secure a desk, but only character secures trust—and trust is the currency of every lasting institution.

The university, when functioning at its highest ideal, is not merely a dispenser of certificates but a forge of virtue. It is a place where the youthful energy of students is refined into principled citizenship. Within its walls, young men and women are exposed not only to technical skills but also to systems of discipline, codes of conduct, and ethical debates that prepare them to lead with conscience as well as competence. In shaping values such as respect for truth, fidelity to promises, and reverence for justice, the university forms the bedrock upon which any sustainable development must rest. Research confirms that this role is neither abstract nor ornamental. A mixed-method study on Iranian universities found that moral character—encompassing virtues, social responsibility, and ethical learning—significantly influenced both academic performance and civic maturity. The study concluded that fostering moral character within the university environment directly enhances students’ contributions to society.

Similarly, the Jubilee Centre for Character and Virtues at the University of Birmingham emphasizes that higher education must cultivate “holistic character development” as a foundation for societal flourishing. Their Framework for Character Education in Universities stresses that virtues like integrity, resilience, and empathy are not optional add-ons, but essential outcomes of a complete education.

The implication is clear: societies that neglect character education, even while producing skilled professionals, risk raising a generation of clever rogues—men and women who know how to manipulate systems but not how to steward them. Corruption, injustice, and exploitation are rarely the fruits of ignorance; they are the products of unformed character. By contrast, a university that deliberately prioritizes moral formation produces leaders who are trustworthy, citizens who are responsible, and professionals who recognize that true progress is not measured merely in profit, but in justice, dignity, and accountability.

In this sense, the university is a moral compass for the nation. It does not simply transmit knowledge—it transmits values that safeguard the soul of society. And where such values are missing, no amount of technical expertise can prevent decay. Therefore, strengthening universities in their role as cultivators of character is not just an academic necessity; it is a national imperative.

Research and Innovation

The university as aforementioned is a hub for research and innovative discoveries that further mankind in different spheres. Research promotes critical and analytical thinking leading to new knowledge and better understanding of one’s field of study.

Further, the significance of research is compounded by the fact that it often leads to innovation which in turn contributes to a growing national economy. The university system in basic and applied researches has made significant contributions to the world/field of science, technology and policy. Student and educators alike, involve themselves in deep research amounting advances in important fields such as the medical field, helping with the formulation of vaccines and medications as well as helping to deepen the understanding and understanding of diseases, bringing us a step closer to formulating cures.

Courses such as robotics have aided in the creation of machines which have helped in the development of the society and nations at large by allowing for ease and speed in certain tasks, even in the creation of Artificial Intelligence which now aids research amongst a number of things in vast fields of study.

The university in providing the intellectual foundation, empirical evidence, and innovative ideas necessary for informed decision-making and progress, allows for innovative thinking amongst humans aiding the development of societies in policy formulation that better the coexistence of nations and societies.
Universities often provide resources and support for both faculty and students to develop entrepreneurial skills and launch new ventures, including spin-off companies. They administer research grants and funding opportunities to support faculty in exploring new research ideas and developing innovative solutions, thereby encouraging innovation and creative thinking.

Economic Development
The university system aids economic development through the creation of job opportunities in its various faculties. It allows for employment of teachers, researchers, even down to construction workers and cleaning services, thereby reducing unemployment rates in societies. The University is usually of hub of commerce and serves as a local economic stimulus through the creation of demand by the students and staff as well the institution itself spending on local goods and services, and by increasing the “supply side” of the economy through the development of human capital (skilled graduates) and innovation (research and technology). These contributions enhance the local workforce, attract new businesses, help existing ones innovate, and generate a multiplier effect from increased local expenditures. They also attract students from other region who will be in need of housing, food and other services encouraging the building of infrastructure.

This directly create the need for the establishment of businesses necessary for the smooth running of the university, such printing businesses, restaurant, demands which are then supplied by the local populace of the location of the university, reducing unemployment in the area and serving as an opportunity for a sustainable source of income for the local populace.
Human capital development is another major way in which universities contribute to economic growth. By educating a skilled and adaptable workforce, universities equip individuals with the knowledge and competencies needed to meet the demands of an evolving labor market. Regions with strong university systems tend to attract employers looking for a well-educated workforce, which can lead to higher wages, increased productivity, and greater economic competitiveness.
Furthermore, universities create an opportunity for regional development. As aforementioned, due to sudden demand in the region due to the establishment of the university, there is attraction talents, influx of entrepreneurs as well as the building of infrastructure, this inevitably urbanizes the region. This urbanization transforms economically depressed regions into vibrant innovation hubs, demonstrating the strategic importance of higher education institutions in shaping regional economies.

1. Civic Engagement and Social Responsibility
Universities affect not only the intellectual prowess of individuals but engages their sense of civic engagement and social responsibility. Being an institution of higher learning it focuses not only on being an incubators for critical thinking, but encourages ethical reasoning as well as social awareness. Through the structured academic programs, extracurricular activities, and community-based initiatives, universities help students understand their role within society and encourage them to become active and responsible citizens.
On one hand, many universities partner with local governments, non-profits, and schools to address pressing community needs. These partnerships often include joint research projects, educational outreach programs, and economic development initiatives. By aligning academic resources with social impact goals, universities demonstrate a model of institutional responsibility that extends beyond campus boundaries, and serve as first hand examples to the students. Universities provide a platform for democratic dialogue and sharing of ideas, through events, publications, or reports to policy makers.

Through the encouragement of unions for students, the university allows for a civic, social and political consciousness. The conduction of electoral campaigns, elections as well as other student union affairs such as altruistic activities, the university helps to fight civic apathy and awakens the sense of responsibilities of individuals.

The universities being such a diverse community exposes individual to an innumerable number of cultural backgrounds and ideologies, and nurture a broader worldview in the minds of individuals as well as cultivates tolerance and empathy. This is a necessary attribute for the creation of a society of responsible citizens. The diversity forces individual to confront their biases and see things from different viewpoints and broaden their knowledge of issues and concepts. It allows for the learning of peaceful exchange alternatives ideas, laying the groundwork for more inclusive and equitable civic participation.

Universities significantly influence civic engagement and social responsibility by shaping students’ values, knowledge, and actions. Through academic programs, community partnerships, and diverse campus experiences, they prepare individuals to participate meaningfully in public life.

2. Cultural and Global Influence
Modern universities are a power force for cultural sharpening as well as preservation and exerting global influence. Universities contribute significantly to how societies develop, preserve, and share their cultural identities. The presence of students from diverse cultural backgrounds enriches campus environments, it allows for cross-cultural dialogue and provides the opportunity for deepened understanding of diverse cultural experiences among domestic students and communities. Universities often engage with the local community, serving as important partners in regional growth and cultural activities.

Culturally, universities serve as custodians and creators of knowledge, history, art, and language. They preserve cultural heritage through research, archives, museums, and literature while simultaneously pushing cultural boundaries through new forms of artistic and academic expression. Faculties of humanities, fine arts, and social sciences explore cultural practices, critique societal norms, and inspire reflection and change. Through lectures, exhibitions, performances, and publications, universities influence public discourse and help shape national and international cultural narratives.

Universities are key contributors to cultural vitality and global influence. They promote cultural preservation and innovation, foster international understanding, and serve as bridges between nations and peoples. As the world faces increasingly complex and interconnected challenges, the cultural and global role of universities becomes not just beneficial but essential for a more cooperative and enlightened future.

3. Social Mobility & Equity
One of the most profound contributions of the university to societal development is its role in advancing social mobility and equity. At its best, the university serves as a ladder, a structure through which individuals can ascend beyond the limitations imposed by birth, background, or circumstance. For those born into poverty, marginalization, or restricted opportunity, the gates of a university are not merely doors into lecture halls—they are portals to a transformed life. Education at this level arms the disadvantaged with skills, credentials, and networks that can dramatically alter the trajectory of both their personal fortunes and the fortunes of the communities from which they come.

Empirical evidence substantiates this reality. Research by The Sutton Trust reveals that young people from low-income homes who attend university are four times more likely to achieve upward social mobility than their peers who do not. The study further notes that while elite institutions play a role, even less selective universities are critical engines of social advancement, enrolling large numbers of disadvantaged students who go on to secure higher-paying roles and greater social standing. This shows that the university does not merely reproduce privilege. It has the capacity to disrupt it, provided it remains accessible and responsive to the needs of wider society.

Beyond individual ascent, universities contribute to societal equity by narrowing class-based disparities. They create a relatively level platform where students from diverse backgrounds can compete on the same intellectual field. In this regard, the OECD report Equity in Education: Breaking Down Barriers to Social Mobility emphasizes that when educational systems are designed to promote fairness, students from different socio-economic backgrounds achieve more comparable outcomes in learning, well-being, and professional life.

This is not only a moral good; it is a civic necessity. A society where upward mobility is possible is a society less fractured by resentment, instability, and despair.

In the wider sense, the university’s pursuit of equity strengthens the social fabric itself. Graduates who have risen through the crucible of disadvantage often become symbols of possibility for their communities. Their success challenges fatalistic narratives that consign the poor to perpetual poverty, inspiring others to strive. Furthermore, by producing leaders, innovators, and professionals from diverse backgrounds, universities ensure that the corridors of power, policy, and influence are not monopolized by the privileged few, but reflect the pluralism of the society they serve.

In sum, the university as a catalyst for social mobility and equity is not a theoretical ideal but a demonstrable fact. It provides the opportunity for disadvantaged individuals to rise, contributes to a fairer society, and in doing so, strengthens the moral, economic, and political foundations of a nation. As long as universities remain committed to widening access and supporting success across socio-economic divides, they will continue to be engines not merely of knowledge, but of justice and transformation.

Continue Reading

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