Investigating the Impact of Revenue Diversification Strategies on Financial Sustainability of State-Owned Tertiary Institutions in Southeast Nigeria

Anyachebelu Uzoma Mirian

Anyachebelu Uzoma Mirian Nwafor Orizu College of Education Nsugbe, Anambra State, Nigeria.

Keywords: revenue diversification, financial sustainability, state-owned tertiary institutions, Southeast Nigeria, higher education.

Abstract

The study assessed how various revenue diversification approaches contribute to financial stability and institutional growth. A comprehensive survey was carried out involving academic and non-academic staff from various public tertiary institutions in Southeast Nigeria, including UNN, UNIZIK, FUTO, and others. The research utilized the Impact of Revenue Diversification Strategies and Financial Sustainability Scale (IRDSFS), which includes thirty items rated on a 4-point Likert scale. This tool, developed and validated by experts with a reliability index of 8.92, was designed to assess the effects of revenue diversification on financial sustainability, the management of internally generated revenue, and the strategies adopted. Data were collected online via Google Forms and analyzed using IBM SPSS Statistics, employing descriptive and inferential statistical techniques to evaluate the results. The findings reveal that revenue diversification significantly enhances financial stability, reduces dependency on government funding, and supports institutional development. Professional certification programs and industry partnerships are identified as particularly effective in generating substantial revenue and fostering academic innovation. Additionally, alumni donations and facility leasing provide consistent income streams, while commercial ventures and consulting services contribute to financial resilience. The study concludes that a multifaceted approach to revenue generation is essential for the long-term sustainability of state-owned tertiary institutions. Recommendations include adopting a strategic diversification plan, enhancing transparency in financial management, and leveraging diverse revenue sources to ensure continued growth and stability. The results underscore the importance of proactive revenue management in maintaining the financial health of higher education institutions in Southeast Nigeria.

Author Biography

Anyachebelu Uzoma Mirian, Nwafor Orizu College of Education Nsugbe, Anambra State, Nigeria.

Department of Economics,

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