A STUDY OF INTERNALLY GENERATED REVENUE (IGR)
BY UNIVERSITY LIBRARIES IN NIGERIA
BY
Zaid, Yetunde A. (Mrs.)
[email protected]
University of Lagos
Abstract
The paper discusses the need for academic libraries in Nigeria to promote marketing
concept of information products and services as a viable source of generating revenue to
augment income from their parent institution
The approach adopted was to review existing literature with visits to selected libraries to
investigate how each library was funded. The next approach was to examine efforts made by
each library to supplement what comes from parent institution knowing that it was inadequate.
Analysis of data from the pre-tested and post-implemented questionnaire revealed the need for
marketing concept to be introduced.
The findings reveal that Academic libraries in Nigeria have been under-funded including
the private universities when you consider their volume of the library Collection.
The 10%
Library Development Fund (LDF) has stopped coming to the federal universities. Librarians
have positive attitude towards different aspect of marketing of information products and
services.
There is an indication that further training on marketing application and ICT are needed
by librarians in Academic Libraries. Considerations should be given to means of delivering such
training by library administrators.
The result and discussion imply that in order for Nigerian academic libraries to survive in
the information market of the 21st Century, there is need for some Internally Generated
Revenue (IGR) activities to be introduced which will make library services efficient, viable and
relevant. It is hoped that this work will provide a spring board for library administrators and
further researchers to erode the misconception that academic libraries is under authority and as
such cannot make financial decisions regarding marketing aspects.
2
Keyword: Academic Libraries, Internally Generated Revenue (IGR), Marketing, Information
products and Services.
Background to the study
Nigerian University Libraries are forever attempting to secure adequate funds to catch up with
the scope of its prerogative services. Where fund available is shared as in many universities,
according to departments, there is not much of the unallocated pool for the library to dip into,
in acquiring a depth of materials to cover an extensive range of collection for the university.
In the best of time, Nigerian academic libraries are not receiving the funding that would
make them attain their potentials and to be efficient and effective. Nigerian Universities are
expanding and developing (in terms of numbers) at such a rapid rate that the library is
continuously trying to build up and to catch up with the galloping rate of expansions in building
up basic stocks and in the provision of essential service for new programmes.
In Nigeria, the fortune or misfortune of University libraries depend almost entirely on the
fund received from the parent institutions. In these institutions, funding, standards and quality
management of information services are determined through the political process which
regulates the allocation of resources for competing priorities in the universities. The big
question is how these academic libraries could perform their prerogative functions in the face of
dwindling funding from their parent institution.
In the knowledge-based society and economy of the 21st century, users’ expectations
and engagement with knowledge and information have grown in sophistication. However,
Nigerian academic libraries are yet to catch up with modern expectations in information
technology. They cannot boast of adequate funding that would make them attain their
potentials.
3
Nigeria has been experiencing a hard-hitting period of economic difficulty since the mid
80s and the nation’s institutions are not spared.
The situation is particularly bad when books
and journals imported from abroad are to be paid for in foreign currencies. In Federal
universities, academic libraries derive their main source of funds from their parent institutions,
which in turn derives a large proportion of its funds from the Federal Government through
National Universities Commission (NUC). Some decades ago, the National Universities
Commission has recommended that at least five percent (5%) of the current university budget
be allocated to the library.
This was upgraded to ten per cents (10%) in 1992 following
pressures from the Academic Staff Union of Universities (ASUU). The NUC gave its support and
instructed that 10% of the university’s budget should be given to its library i.e. Library
Development Fund (LDF). It was made a separate item on the budget and the library would
know how much to spend at any given time.
Unfortunately, the tide is changing. What is called the library Development Fund (LDF)
has been stopped since 2001. The joy of libraries getting ten percent of the recurrent university
budget has been short-lived (Olanlokun and Adekanye, 2005). Each university administration
now decides what to give to its library. According to Ogundipe (2005), many methods aid the
non-compliance. The university libraries covered by this study have different stories to tell. The
University of Lagos, which is a federal university, has not received more than five per cent since
then, (Olanlokun & Adekanye; 2005). This is in spite of the inflation and the increasing cost of
books, journals and other library materials. At the State Universities, the University Librarians
prepare and defend a budget and in a system where, “he who has the loudest voice gets the
largest share”, the University Librarian has to be vocal and bold for his budget not to be
slashed. It is a different ball game at the private Universities where the founder and board of
trustees determine what share of the university budget goes to the library.
4
It is unfortunate that Nigerian Academic Libraries have been reluctant to embrace the
concept of marketing their products and services for the purpose of generating revenue but
rather prefer to rely on the quality of their so called “Social services” and funds from their
parent institutions. It is pertinent for library administrators to know that academic libraries
involve numerous products and service exchanges, thus marketing has to be embraced to align
and integrate these processes to internally generate revenue to boost library services.
In the face of the dwindling budget, amid skyrocketing prices of information provision,
the upshot is for library administrators to look inwards and generate revenue that would
complement whatever grant it receives from the University accounts. In other words, internally
generated revenue (IGR) has to be given appropriate attention for academic libraries to be able
to provide the services expected of it by Patrons.
Statement of the problem
Academic library is an integral part of the University system established to support
activities of learning, teaching and research. It is a known fact that for the library to continue
to be relevant it must meet up with the mandate to provide up-to-date and relevant information
to the academic community it serves. Academic libraries are being put under pressure to justify
their existence and to provide improved, innovative and dynamic services in the 21st century.
However, no library can provide such services effectively in the face of the dwindling financial
trend.
The researcher observed that library funding has nose-dived with its attendant problems.
There have been reported cases of mutilation of library books by users due to lack of
photocopying services directly run by the library at a cheaper rate. Apart from book mutilation,
some library users are also tempted to steal some of these valuable materials especially when
5
the library has few copies in circulation. Often times, library management purchase few copies
of important titles as against the required number if fund at their disposal is inadequate.
Besides, large collections of broken down computers and other information technology facilities
are not properly maintained and repaired or replaced because of insufficient fund. Finally, lack
of fund has equally put the librarians and other para-professional staff at a disadvantage of
attending workshop/seminars and conferences which could enhance their productivity and
professionalism.
This
study
therefore
investigates
the
place
of
internally
generated
revenue
complementing the fund released by library management in improving the library services.
Objectives
The following objectives guided the conduct of the study:
1.
To determine out the adequacy of the Library Development Fund (LDF);
2.
To gather information about the products/services with charging patterns;
3.
To
investigate
the
use
put
to
revenue
generated
internally
by
library
administrators/management; and
4.
To determine the percentage shares of the internally generated revenue between the
library and the University.
Literature review
An excerpt from library literature on the effects of under-funding of our library system in
Nigeria and African generally has drawn more attention to other means of generating additional
funds for the upkeep of libraries. Adeniji (1995) reminds us that universities by law have
authority to establish ventures to earn income. He went ahead to list viable projects that can
6
be established to support government funding. Ojoade and Ochai (2000) seem to agree with
Adeniji in their submission that core funding from elsewhere remains an essential requirement,
indicating that government must recognize the importance of libraries and information centers
for providing information which is an essential commodity for national development.
Librarians are the information providers and De Saez (2002) said:
Librarians and information professionals are in the people business,
they now need to operate as business directors and managers and
must harness marketing concepts and techniques to their other very
considerable powers as their services are to survive, offer quality
and prosper.
Academic libraries are established to support academic activities of learning, teaching
and research.
However, for academic libraries to meet the objectives for which it was
established, one cannot ignore the opinion of Anafulu (1997) when he said
“Money is essential for the procurement and processing of materials,
for the hiring of personnel and for the purchase and maintenance of
equipment… Where finance is lacking, it is impossible to organize a
library service of any kind and where it is inadequate, the efficiency
of that service is bound to be adversely affected.
Before the Academic Staff Union of Nigerian Universities (ASUU) came to the rescue of
university libraries in the early 1990s, each institution was supposed to spend five per cent of its
total budget on the library. Ratcliffe’s study, quoted by Edoka (2002) shows that in 1973/74,
Ahmadu Bello University spent 4.36% of its total budget on its library; University of Ibadan
spent 4.6%; University of Lagos spent 4.50%; University of Benin 4.9%; University of Ife
4.76% and the University of Nigeria Nsukka 10.20%. Nsukka spent that much because the civil
war had just ended then and the library had to be rehabilitated. The academic Staff Union of
Universities (ASUU) reached another agreement with the Federal Government in 1992 to boost
what comes to the library to 10% of the total regular budget. It was this agreement that ASUU
signed with NUC that gave birth to the Library Development Fund (LDF). The ten per cent was
7
made available for some years, but stopped some years ago. It ceased to be operational from
31st December 2001 (Ifidon and Okoli; 2002). According to Olanlokun and Adekanye (2005),
Federal University Libraries are now at the mercy of their Vice-Chancellors who allocate the
available fund as they deem fit.
In the case of State universities, the grant is released by their states to the University
Committee on quarterly installments, Anafulu (1997).
It is a different story in Private
Universities. The University Council determines what comes to the library and whether such
fund released is sufficient is a different story.
As a result of the severe financial constraints under which all academic libraries suffer,
there has been a move to find additional sources of fund. In United Kingdom, this is called
“Income Generation”, and in the United States of America “Fund Raising” (Rosenberg 1997). In
Kenya, Malawi and Tanzania, the situation is not different as inadequate government grants
severely affected library and information services.
From Literature, some academic libraries in Nigeria took the initiative to supplement
government grant and introduce charging fees to employ various resource mobilization
techniques as a strategy to raise income for sustainable services. Libraries began to look for
alternative ways of funding their activities as a matter of survival (Utah, 2001; Tamiu, 2001;
Nawe and Kiondo, 200). For example, the University of Jos library has been procuring bond
paper in bulk and preparing it as duplicate sheets in its bindery for retail sale to departments
and individuals at a cheaper rate than the University Central Store (Ojoade and Ochai, 2000).
Zaki (1992) also reported the commercial section of photocopying and word processing
at the Ahmadu Bello University.
The University of Lagos also between 1996 and 2000
commercialized the use of the internet for sending electronic mails by both staff and students.
This was overseen by the University Librarian and Automation Librarian. The digital world is
8
changing the functions of libraries and information services, and the role of the librarians and
information professional is as vital as ever in developing the knowledge and skills of users that
the library support. In the face of the inadequacy of fund, marketing concepts and techniques
can no doubt contribute a dynamic approach to total strategy development for libraries and
librarians that will ensure effective management. No matter the amount government allocates
to education, and no matter how well-funded the universities may be, there never is enough
money for library needs. To get around some of the problem of under funding, some marketing
concepts must be introduced into academic libraries.
Marketing, according to Kotler et al. (2002) is a social and managerial process by which
individuals and groups obtain what they need and want through creating and exchanging
products and value with others. At the ALA Conference in 1987, in San Francisco, Richard H
Evans noted that
“Librarians must compete in the political arena or be starved…….To him, it does
not matter whether you are in public, special or academic library
and information centre,
modern library must be aware that marketing is as important to its future as is the ability to
catalogue.
In line with this view, to generate revenue to supplement what comes to the library,
what then can be marketed? De Saez (2002) said that anything can be marketed - products,
services, organizations, people, places and social issues, Libraries, information centre, learning
resource centre, information services, librarians, information professionals, learning resources
managers – all can be marketed successfully to generate income for the library.
He stressed further that information professionals need to lead the way. They need to
be curious, innovative, adaptable, and gregarious; they need to be good communicators, good
marketers and supportive service deliverers. Without such characteristics, according to him, the
9
information professionals/library administrators will not be able to add values and make an
impact to their user community.
The following are some library services that are prized and serve as source of income in
some academic libraries in Nigeria: bindery and printing; searching on Databases for electronic
journals; searching online references; document delivery; desk search; photocopying services;
consultancy services; selective dissemination of information; bibliographic services; and
Information repackaging.
According to Ojoade and Ochai (2000) some institutions in Nigeria have also imposed fee
on: former students; students from other institutions; non-registered readers for use of the
library; non-university readers; and charges on overdue borrowing.
Rosenberg (1997) reported that, on the average, libraries in the United Kingdom have obtained
about 6% of their income from these activities. University of Sheffield was able to generate
11% of its income from photocopying and contracting library services to local health authorities.
As the financial squeeze became tighter, library administrators in some libraries have no
other options but to look into commercializing. Rosenberg (1997) has gone a step further to
state the rationale for trying to generate income, among other reasons are;
a) It enhances the librarian’s standing and credibility as a financial manager.
b) It increases the visibility and reputation of the library.
c) It promotes a customer-based, competitive approach to the provision of information
services.
d) It enables new services to be offered which otherwise would be beyond the allocated
income.
Librarians, information professionals and library administrators will need to recognize that
developing effective marketing strategies to generate income is more difficult today not because
10
of the digital revolution but because of a society in which customers are becoming more
sophisticated and knowledgeable, maybe even cynical about marketing activities.
Finally, in the researcher’s opinion, Internally Generated Revenue (IGR) as an alternative
or supplementary source of funding can no doubt cover a wider range to supplement provision
from government allocation and grant. It will enhance more flexibility and sometimes an
unexpected addition for the opportunity to use library resources of both men and materials that
would otherwise be dormant and under-utilized to generate fund that will increase services to
the library.
Methodology
The research design adopted for this study is survey method. Surveys are chiefly used in
studies that have individual people as a unit of analysis (Babbie 2001).It will allow a group or
item to be studied by collecting and analyzing data from only a few people or items considered
representative of the entire group. Stratified random sampling technique was adopted to select
the subjects for this study. University librarians, readers services librarians, automation/
systems librarians and staff of the circulation sections of the selected universities were used.
Data was collected through the use of questionnaire. The questionnaire was divided into three
(3) sections. Section A has to do with the profile of the institution library while sections B & C
were designed to study the need and attitude of librarians to marketing practice planning and
internally generated revenue. Eighty two (82) copies of the questionnaire were personally
administered out of which seventy eight (78) were retrieved.
Analysis of data and discussion of findings
The purpose of the survey was to obtain data on the profile of the libraries, the
librarian’s attitude to internally revenue generation, their opinion to different concepts of
11
marketing, and the use put to the revenue generated. Before each statement, percentages of
different types of attitude of total librarians are given. For a better understanding and proper
analysis, the data have been displayed in Tables I, II, III & IV.
12
Table 1:
ITEM
Year of
establishment
Students’
Population
Volume of
Collection
Library
funding
Profile of Libraries’ Survey
University
of Lagos,
Lagos
University
of Ibadan,
Ibadan
Obafemi
Awolowo
University
, Ile-Ife
Fed. Univ.
of Agric.,
Makurdi
Lagos
State
University
, Ojo
Ogun State
University,
Ago-Iwoye,
Ogun State
1962
1948
1962
1987
1983
1982
Tai Solarin
Univ. of
Education,
Ijebu-Ode,
Ogun State.
1978
35,000
30,018
30,000
7,000
21,000
30,000
455,000
1,434,100
650,000
390,000
60,000
40,000
NUC
NUC
Through
NUC
NUC
N.U.C. - National Universities Commission
Through
State Govt.
Through
State Govt.
2002
1999
Redeemers
University,
Redemption
Camp, Ogun
State
2005
5,000
6,500
4,000
500
25,000
20,000
55,000
10,000
Through
State
Government
Convenant
University,
Ota, Ogun
State
Through
Parents’
organization
Babcock
University,
Ilisan,
Ogun State
Through
Parents’
organization/
Seventh Day
Adventist
Through
Parents,
institutions,
Redeemed
Christian
Church of God
Table II:
Need for Internally Revenue Generation
SA (%)
Statements
Government funding libraries should not charge
11
at all
Increasing resource constraints and shrinking
54
budgets has forced librarians to look inwards for
more income
Librarians are ignorant about internal income
41
generation
Funds for university library are mainly derived
41
from government sources, so services should be
automatically extended to all the people who may
require university library services.
Users should pay for library services donated by
philanthropist.
Planning and implementing internal generation
43
programs provide an opportunity to assess
quality and usage of library information products
and services
Success of internal income generation depends
89
upon continuous persistence and motivated
teamwork.
Rigorous assessment of internal and external
70
environment is necessary for librarians to make
decisions on how to generate income.
It is ideal to designate a full professional to look
63
after what comes into the library through income
generation.
Awareness programmes should be organized to
56
sensitize users on the services that are feebased.
Internal income generation will portray the image
of the library as a money making venture.
No worthwhile real profit in all these activities for
34
supplement funding. Income generated merely
cover increased cost for administrative expenses.
A (%)
NS(%)
4
D (%)
SD (%)
33
52
46
38
8
3
26
5
18
10
10
26
64
43
9
5
10
3
26
4
32
5
41
3
11
3
58
8
49
37
KEY: SA – Strongly agreed, A – Agreed, NS – Not sure, D – Disagreed, SD – Strongly disagreed
The data in table II & 111 shows the librarian’s attitude towards the need for internally
revenue generation to supplement what comes in from the government or parent body.
Majority of the librarians (52%) strongly disagree and 33% disagree with the opinion that
government funding libraries should not charge any fees at all.
According to 54% of the librarians, increasing resource constraints and shrinking budget has
forced library management to look inward for more income. Forty-one percent of the librarians
questioned are ignorant about internally income generation. Majority of this set of respondents
are from the private university. According to them, fund for university library are mainly derived
from sources, therefore library service (which is a social service) should be automatically
extended to all the people who may require university library services. Implementing internal
generation programs can provide an opportunity to assess quality and usage of library
information products and services according to the respondents (87% librarians). It shows that
majority of the librarians have positive attitude and they felt that planning and implementing
internal revenue generation programs help in justifying the involved cost in generation of
information products/services.
All librarians accept the need for a mission statement and monitoring it by users. All
except 4, totally disagree with the opinion that marketing concepts is not meant for academic
libraries. To these librarians, marketing concept should be applied in all library education.
According to them, planning and executing a marketing program that could generate
internal revenue is an indispensable activity for any academic library to survive in the present
information age. This shows a positive attitude.
The data show that 88% of the librarians strongly agreed that a professional librarian
with social sciences background especially in the area of economics should be designated to
manage the marketing activities of the library.
Rigorous assessment of internal and external environment is necessary to make decisions
(according to 70% strongly agreed and 26% agreed. (see table III)).
15
Table III:
Attitude to marketing planning
Statements.
SA (%)
A (%)
A mission statement is a must for
every academic library
Marketing concept is not meant
for academic libraries
Success of internally generated
revenue depends on continuous
persistence and motivated
framework.
Executive and marketing
programme to generate revenue
is an indispensable activity for any
academic library to survive
A professional should be
designated to look after the
marketing activities and internal
revenue generation
The mission statement should be
monitored and measured from
time to time.
78
22
NS
(%)
D (%)
SD
(%)
4
37
59
83
14
3
64
31
5
58
33
7
59
41
16
Table IV:
Internal Revenue Generation Marketing Practices & Planning.
NO.
1
QUESTION
YES (%)
Do you think what comes to the university
NO (%)
100%
library is adequate to run efficient library?
2
3
4
5
6
7
Does your library receive the Library
Development Fund (LDF) in the last 5 years
Does your library practice internally
revenue generation
Are users charged for (a) overdue loans,
damaged materials, library fines, the library
publications (e), internet services (f), loss
of books.
Does your library impose fee on (a) use of
cloak room; (b) former unregistered
students, (c) students from other
institutions; (f) loss of books.
Library publishes library
bulleting/newsletter about its professional
activities.
Library publishes annual report
100
78
22
100
73
27
78
12
100
Data in Table IV shows that majority of the librarians agreed that what comes to the
library is not sufficient to run an efficient library. In the libraries, parent institutions determine
what comes to the library. All libraries are charging users for library dues, overdue loans, loss of
books, damaged materials, library publications and internet services. University of Lagos run a
certificate programme in collaboration with Human Resources Management (HRDB). The
sharing formula from such income is as follows: Twenty per cent (20%) to the Department, five
per cent (5%)
to the faculty, forty-five percent (45%) to the university and thirty per cent
(30%) to resource person. University of Lagos library generates revenue from students of other
institutions coming to use Unilag library, former unregistered students who must pay before
clearance and external users. In other federal, state and private university libraries, fees are not
placed on unregistered students, students from other universities and external users. All
17
Libraries surveyed are publishing reports and majority of them (67%) are concerned with
publishing library bulletin, but they use signs, symbols, handouts and instructions, library
exhibitions in notifying users about library activities. It shows that all conventional methods are
being used by all the libraries to inform users.
In Federal University Libraries, management had to go solo not to raise unnecessary
highbrow from the parent institutions and so pay money realized through the University Cash
Office into Library account. Money realized have been put in use to sustain services, printed
receipts/tickets used in the cloakroom and at the circulation desk, maintain vehicles; do minor
repairs and most importantly, attendance of library officers cadre at conferences. At other
federal and state universities surveyed, money realized are used to support information
technology facilities, repairs and maintenance of broken down equipments and purchase of
photocopying machine. However, at the private Universities, money realized goes straight to the
University account with no question on how money was spent.
This study has realized that the move and achievement recorded which is just like a drop in the
ocean has showed that academic libraries can derive more revenue through its commercialized
activities.
Summary of findings
Within the framework of objectives/missions of academic libraries, the libraries surveyed
have been acting as learning resource centres to provide the knowledge and information
support to teaching and research.
The survey reveals major findings indicating that:
i.
Academic Libraries in Nigeria have been under-funded;
18
ii.
That the 10% Library Development Fund (LDF) have stopped coming to the
libraries in federal institutions;
iii.
Librarians have positive attitude toward different aspects of marketing of
information products and services;
iv.
Librarians agree that ignorance with marketing is responsible for discouraging
marketing applications. This reflects the need for proper training and teaching of
marketing applications to librarians.
v.
Although the librarians consider the requirement to designate a full professional to
manage the marketing activities, yet none of the libraries visited have appointed
such personnel for marketing of information of library products and services;
vi.
However, many of the librarians perceive many barriers to apply the concept of
marketing in generating revenue in the library, among which are:

Lack of knowledge;

Misconception about the objective of Academic Libraries. That academic
library is under authorities and so cannot make financial decisions regarding
marketing aspects.
Recommendations
This study has revealed that Academic Library environment is now characterized by
information explosion, budgetary cuts, increased user demand for service and the desire to
apply information and communications technology (ICT) in information management. Based on
this, the following recommendations are suggested:
19
i.
Effective marketing and internally generated revenue (IGR) should be seen as the most
viable option and way forward for academic libraries to supplement whatever comes
from parent institutions.
ii.
Academic universities should take advantage of the information age and make
Information and Communication Technology (ICT) outreach services a major source of
revenue for the library. The ICT training unit could serve as a double purpose. It would
reduce training costs on the part of the library to train its staff outside the library, and
also generate revenue as outsiders (i.e. students and other members of the university
community) would pay for the training services.
iii.
Library administrators and librarians in general need to possess skills not only in
discharging their duties as professionals but should display skills in marketing information
services and managing revenue generating projects.
iv.
Consultancy services such as publishing, information repackaging, information services,
indexing and abstracting, software installation techniques, setting up both organizational
and individual libraries should be commercialized in the real sense of it. These are good
sources of generating revenue.
There should be cost-sharing formula between the
library management and the individual.
Conclusion
In conclusion, this study is not suggesting that academic libraries become profit marking
libraries but should be imaginative by creating opportunities to supplement what comes from
the parent institution for cushioning the effect of under funding in Nigerian academic libraries.
20
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