Arguments in Favor (Yes, They Should)
Publishing financial statements can promote transparency and build trust between private schools and their stakeholders—especially parents and guardians who fund the schools through fees. It gives assurance that funds are being used responsibly and ethically.
In a time where private school fees in Nigeria are constantly rising, making financials public can justify costs and demonstrate value. Parents deserve to know how their payments contribute to school improvements, staff salaries, learning materials, and infrastructure.
Transparent financial practices can also attract grants, partnerships, and regulatory goodwill. It shows accountability and strengthens the school's reputation in the education ecosystem, particularly among international stakeholders.
Furthermore, it discourages financial mismanagement or exploitation, which sometimes occurs in unregulated or profit-driven private institutions. Public financials ensure management is held accountable and must prioritize student welfare over profit margins.
Arguments Against (No, They Shouldn’t)
Opponents argue that private schools are businesses and should not be compelled to disclose their financial details. Unlike public schools funded by taxpayers, private institutions rely on independent models and deserve some degree of financial privacy.
Releasing financial statements could expose schools to competitive disadvantages, as rivals may use the data to copy, undercut, or sabotage operations. Financial exposure could also create unnecessary scrutiny from outsiders unfamiliar with the context of school budgeting.
Additionally, interpreting financials requires a level of financial literacy many parents may not have, potentially leading to misinterpretation or mistrust even when the school is acting fairly. This could breed suspicion instead of fostering understanding.
Lastly, publishing financials might increase administrative burden, particularly for small or mid-tier schools that already struggle with limited resources and staff. It could drive them to divert energy from education delivery to financial reporting.
Conclusion
While transparency in private school finance promotes trust, accountability, and value justification, it must be balanced with the school’s right to privacy and sustainability. A potential middle ground could involve periodic financial summaries for stakeholders without disclosing every operational detail.
