This paper examined education expenditure trend, higher education student enrolment and
linkage with unemployment and economic growth in Nigeria. Data for the study came from
several issues of Central Bank of Nigeria annual reports and statement of account, Federal
Ministry of Education and National University Commission (N.U.C). The results show that
Government funding is unstable and unpredictable, capital and recurrent funding since 1970
are only a very small fraction of the nation’s budget, total enrolment contrasts sharply with
level of employment because government could not limit enrolment to a level which fund
made available could adequately cater for and the proportion of GDP that goes to education is
still low.