Assessment of Economic Implications of Dropout on the Development of Public Universities in North-Central Nigeria

This study assesses the economic implications of student dropout on the development of public universities in North-Central Nigeria. Student dropout in public universities poses significant economic challenges, yet its specific implications for institutional development and regional human capital in North-Central Nigeria remain underexplored. This study assessed the economic implications of student dropout on the development of public universities in North-Central Nigeria. Specifically, the study examined the financial losses incurred by universities and evaluated the impact of dropouts on human capital development and long-term economic contributions to the region. A cross-sectional survey design was employed, a hypothetical population of 295,830 students and 7,745 staff drawn from the 13 public universities in North-Central Nigeria, utilizing a structured 10-item questionnaire administered to 400 respondents (comprising academic staff, administrative staff, and final-year students) across selected public universities in the region. Data were analyzed using mean, standard deviation, and a benchmark mean of 2.5 to determine agreement levels, while an independent samples t-test was used to test for gender-based differences in perceptions. The findings revealed that respondents agreed that dropouts lead to significant tuition revenue losses and wastage of government subventions, and negatively affect the skilled labor pool, long-term productivity, and Gross Domestic Product (GDP) contributions. However, respondents disagreed that dropouts significantly increase administrative costs, cause infrastructure underutilization, or tarnish institutional reputation. The t-test results indicated no statistically significant difference between male and female respondents' perceptions (t = -0.34, df = 398, p > 0.05). The study concludes that while direct financial losses and human capital deficits are recognized, the indirect operational and reputational costs are less pronounced instakeholders' perceptions. It is recommended that universities strengthen student retention mechanisms, implement early warning systems, and diversify funding sources to mitigate dropout related losses.