High rates of growth for foreign exchange and government revenues characterised the recent Nigerian economy up until 1982. Oil revenues then halved in one year and, in 1986, halved again. The initial responses were, first, borrowing and, second, severe cuts in government expenditure, In mid 1986, the currency was significantly depreciated. This increased domestic currency government revenues but substantially increased the cost of imports. This article documents the effects of economic policies on resources for education, concentrating on primary and university education. The impact of these policies is then discussed.