The Academic Staff Union of Universities (ASUU) has raised alarm over a provision in the Nigeria Tax Reform Bill 2024 that proposes phasing out the Tertiary Education Trust Fund (TETFund) by 2030. The union warned that such a move would cripple public tertiary institutions and make education unaffordable for many Nigerians.
ASUU National President, Prof. Emmanuel Osodeke, criticized the proposal, stating that it undermines decades of effort in building and sustaining TETFund. He emphasized that the plan, if implemented, would have dire consequences for the nation’s education system.
“With all the Development Levy going to the Student Loan Scheme or NELFUND, public tertiary institutions will be forced to increase tuition fees, which will become exorbitant. Phasing out TETFund will threaten tertiary education in Nigeria, rendering all the efforts to establish the Education Tax Fund, which later became TETFund, futile,” Osodeke warned.
The Nigeria Tax Reform Bill 2024, currently before the National Assembly, includes key legislative proposals such as the Nigeria Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill. These bills aim to consolidate tax frameworks but have sparked concerns over their potential impact on education.
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A particular point of contention is Section 59(3) of the Nigeria Tax Bill 2024, which outlines the redistribution of the Development Levy, an education tax that funds TETFund. Under the proposed changes, TETFund would receive 50% of the levy in 2025 and 2026, with the remainder allocated to NITDA, NASENI, and NELFUND. However, by 2030, NELFUND is slated to receive 100% of the levy, effectively cutting off funding for TETFund, NASENI, and NITDA.
Prof. Osodeke stressed that TETFund has been a lifeline for public universities, enabling them to provide essential infrastructure and resources. “If you visit public tertiary institutions, you’ll see that anything new or decent on campus has been provided by TETFund,” he noted.
He warned that without TETFund’s support, many institutions would be unable to function effectively. “The government is indirectly planning to shut down TETFund, and this will force universities to increase tuition fees to unsustainable levels, making education out of reach for the poor,” he added.
ASUU called on the federal government to reconsider the proposed reforms, urging it to prioritize education and ensure the survival of public tertiary institutions. “The phasing out of TETFund will destroy public tertiary education in the country,” Osodeke concluded.
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