The Academic Staff Union of Universities (ASUU) has urged the National Assembly to safeguard the Tertiary Education Trust Fund (TETFund) from potential abrogation under the proposed Nigeria Tax Bill 2024.
ASUU emphasized that TETFund remains a critical achievement of its engagements with successive Nigerian governments since 1992, playing a vital role in the development of tertiary education.
The union warned that repealing the TETFund Act 2011, whether by design or default, would significantly harm both the education sector and Nigeria’s overall development.
ASUU’s stance was presented by its president, Prof. Emmanuel Osodeke, during the National Assembly’s public hearing on Tax Reform Bills in Abuja.
Concerns Over Proposed Education Tax Abrogation
In a presentation titled “Debates on the Nigeria Tax Bill, 2024: Our Case for Tertiary Education Trust Fund, TETFund,” ASUU expressed deep concerns over the proposed removal of education tax, which it argued poses a serious threat to TETFund’s survival.
“The Academic Staff Union of Universities (ASUU) has monitored with keen interest the debates about the review of the tax system in the country, as proposed by the Nigeria Tax Bill 2024, currently before the National Assembly,” the statement read.
“Of particular concern to our union is the proposed abrogation of the education tax, which poses serious threats to the continued existence of TETFund.”
ASUU highlighted that TETFund has been instrumental in infrastructure development, postgraduate training, and research capacity building in public tertiary institutions over the past 15 years.
The union stated that over 90% of capital projects in federal and state universities, polytechnics, and colleges of education were funded by TETFund. It further stressed that the agency remains the primary source of higher degree training for young academics and support staff since the 2011 reformation of the Education Tax Fund (ETF) into TETFund.
Impact of Nigeria Tax Bill 2024 on TETFund
ASUU strongly opposed the move to divert TETFund’s resources to the Nigerian Education Loan Fund (NELFUND), calling it detrimental to Nigeria’s education sector.
“Section 59(3) of the Nigeria Tax Bill (NTB) 2024 states that only 50% of the development levy will be allocated to TETFund in 2025 and 2026, with the remaining percentage distributed among NITDA, NISENI, and NELFUND,” ASUU noted.
It continued: “TETFund will receive 66.7% of the development levy from 2027 to 2029, but from 2030 onwards, it will receive nothing, as all funds will be transferred to NELFUND.”
“With all sense of responsibility, ASUU finds this development not only worrisome but also detrimental to Nigeria’s national development objectives.”
ASUU’s Position on TETFund’s Future
The union presented several reasons why TETFund must be preserved, stating:
- Illegal Reallocation of Education Tax: Diverting funds meant for TETFund to another agency not recognized under the TETFund Act 2011 is unlawful and must be stopped.
- Zero Allocation in 2030: The decision to allocate zero funds to TETFund from 2030 is a covert attempt to abolish the agency.
- Undermining Higher Education: Eliminating TETFund funding would set back Nigerian public tertiary education and reverse its progress.
- Increased Industrial Crises: TETFund’s annual support for educational infrastructure has significantly reduced industrial disputes in tertiary institutions.
- Global Recognition: The Ghana Education Trust Fund (GETFund) was modeled after TETFund, and other African nations have studied Nigeria’s approach to improving tertiary education funding.
ASUU concluded by calling on the National Assembly to strengthen, rather than dismantle, TETFund for the continued progress of Nigeria’s education sector.
