The Academic Staff Union of Universities (ASUU) has strongly opposed the proposed withdrawal of the education tax that supports the Tertiary Education Trust Fund (TETFund), as outlined in the tax reform bills currently being reviewed at the National Assembly.
In a memorandum delivered at a public hearing organised by the Senate Committee on Finance on Tuesday, February 25, ASUU President, Professor Emmanuel Osodeke, warned that the removal of TETFund’s education tax would be disastrous for the future of tertiary education in Nigeria.
He described the proposed change as a grave threat to the sustainability of public universities, polytechnics, and colleges of education across the country.
“TETFund has been the backbone for infrastructural development, postgraduate training, and research capacity building in Nigeria’s public tertiary institutions for the past 15 years, Over 90 per cent of capital projects in these institutions have been funded through TETFund, and it remains the primary source of higher degree training for young academics.” Osodeke stated.
The ASUU President expressed concern that the tax reform bills, particularly the Nigeria Tax Bill 2024, proposed allocating only 50 per cent of the development levy to TETFund in 2025 and 2026, with the remainder being shared with other agencies like the Nigerian Infrastructural Technology Development Agency (NITDA) and the National Agency for Science and Engineering Infrastructure (NASENI).
By 2030, the bills proposed that TETFund would no longer receive any share of the development levy, and all funds would be redirected to the newly established Nigerian Education Loan Fund (NELFUND).
“This proposal not only weakens TETFund but also poses a direct threat to the survival of the entire tertiary education system in Nigeria, Replacing TETFund with NELFUND is like killing a parent to keep a newborn child alive; it is unethical and against natural justice.” Osodeke said.
He further argued that the suggestion for TETFund to seek alternative funding sources is misguided, as it is a statutory body created by law and depends entirely on the education tax. Without this funding, Osodeke warned, the agency would cease to exist.
The ASUU President emphasised that TETFund’s impact extends beyond tertiary education, noting that the fund also plays a critical role in improving the quality of teachers and support staff at all levels of education in Nigeria.
Meanwhile, during the same public hearing, the Comptroller-General of the Nigeria Customs Service (NCS), Adewale Adeniyi, raised concerns about the tax reform bills, specifically some provisions that conflict with the Nigerian Customs Act 2023. Adeniyi urged the Senate Committee on Finance to address these issues before the bills’ third and final reading.
“Since the enactment of the Nigerian Customs Act in 2023, we have seen a significant increase in revenue, with a 97 per cent rise over the last two years. We believe it is premature to amend these laws at this stage,” Adeniyi said.
Additionally, the President of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Festus Osifo, called for caution in the reform process, warning that any changes to the tax structure should not harm the petroleum industry.
He expressed concern that the proposed tax reforms could lead to job losses, reduced investments, and operational inefficiencies within the sector.
The Nigerian Supreme Council for Islamic Affairs (NSCIA) also made a submission during the hearing, urging lawmakers to ensure that the proposed tax reforms do not infringe on religious rights.
The Council requested that all provisions related to Shariah law and the term “ecclesiastical” be reconsidered to avoid conflicts with constitutional rights and religious freedoms.
In response to the submissions, the Chairman of the Senate Committee on Finance, Senator Sani Musa (APC, Niger), assured stakeholders that their concerns would be thoroughly reviewed before any further action is taken on the tax reform bills.
The debate over the tax reforms continues as the National Assembly works to balance government revenue needs with the impact on key sectors, including education, the oil industry, and religious freedoms.
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