The political economy model of educational expansion is discussed in this paper. The model holds that when education is of top priority to the political system in a country, the demand for resources by the educational system will usually be met until the high proportion of resources allocated to education threatens the capacity of the other sectors, particularly the economy, to function well. Allocation of resources to education will then start dropping and decrease progressively until changes in priority reverse the downward trend. This model can be seen to apply to educational development in Nigeria. Education was recognized as of prime importance since the early 1950s and enrollment at all levels expanded greatly. This expansion was a political and economic imperative and, at the time, finances were available. After 1975, however, the country began to experience serious financial difficulties and, in consequence, both federal and regional allocations for education declined. (Author/JM)