Since the reintroduction of multipartydemocracy in 1999, the federal and state governments inNigeria have embarked on a series of major educationalreforms. These are intended to achieve universal basiceducation and improve the quality and relevance of postbasic education. Faced with large rural-urban, gender, andregional disparities in enrollment and generally poorlearning outcomes, the Federal Government of Nigeriaintroduced the Universal Basic Education (UBE) Program in1999, with the aim of providing nine years of free,compulsory basic education comprised of six years of primaryand three years of junior secondary education to allchildren in the country by 2015. The UBE law, which waspassed in 2004, sets out the key roles and responsibilitiesof public agencies at all levels of government. Despitesignificant efforts during the past eight years, muchremains to be done in the education sector, includingattainment of the education for all (EFA) and educationMillennium Development Goals (MDGs). The Federal Ministry ofEducation (FME), along with all other major stakeholders,recognizes that the education sector in Nigeria is in astate of crisis and that nothing less than major renewal ofall systems and institutions is required. To this end, thegovernment launched a major education reform program in2006, which stresses the importance of institutional reformsto improve the efficiency and effectiveness of servicedelivery at all levels of education. The second volume ofthis report addresses in depth the level and pattern ofpublic expenditure on education in Nigeria. The first twochapters review objectives, methodology, data sources, andlimitations and provide an overview of the country and thesector. The third chapter is on the costs and financing ofeducation, and Fourth chapter on efficiency, analyzedavailable data on how public resources are allocated andused within the education sector. The fourth chapter alsoexamines equity in public spending and householdexpenditures on education. The fifth chapter provides aconclusion and offers policy recommendations.