By Waziri Isa Adam (Group Editor-in-chief)
The Academic Staff Union of Universities (ASUU) has raised alarm over the Nigerian government’s proposed tax reform bills, which it claims threaten the existence of the Tertiary Education Trust Fund (TETFund), the brain child of ASUU. The bills, if passed into law, would abolish TETFund and severely impact Nigeria’s tertiary education system.
ASUU President, Professor Emmanuel Osodeke, warned that the proposed tax reforms aim to reduce the tax paid by companies for education development, with the funds redirected to the Nigerian Education Loan Fund (NELFUND) to provide student loans. Osodeke described the move as a deliberate attempt to destroy Nigeria’s tertiary education system.
“If we don’t work hard, we will not be sitting here in the next six years. Nobody will be here in TETFund in the next six years,” Osodeke warned. He emphasized that the proposed tax reform would drastically impact funding for Nigerian universities, urging stakeholders to take action to prevent the passage of the bills.
Osodeke explained that the Executive branch of government is proposing that the tax paid by companies to develop education should be reduced from 4% to 2%, with the proceeds given to NELFUND to provide loans to students. He argued that this would diminish TETFund’s capacity to intervene in institutions and lead to its gradual winding down.
“The information available to us as a union is that there are two sets of bills in the National Assembly. One is from the executive, and one is from the legislature, all concerning TETFund. The one from the executive takes a page. Out of 260 tax reviews, it is just a page in it. And I am very sure the president will not have the details to look at when he is reading,” Osodeke said.
TETFund’s Executive Secretary, Arc. Sonny Echono, announced a record-breaking Education Tax collection. This underscores the critical role TETFund plays in supporting Nigeria’s tertiary education.
Echono promised a bumper harvest for universities and other tertiary institutions, highlighting TETFund’s commitment to improving education in Nigeria.
The proposed tax reform bills include:
The Nigeria Tax Bill, which provides the fiscal framework for taxation in the country.
The Tax Administration Bill, which provides a clear and concise legal framework for all taxes in the country and reduces disputes.
The Nigeria Revenue Service Establishment Bill, which repeals the Federal Inland Revenue Service Act and establishes the Nigeria Revenue Service.
The Joint Revenue Board Establishment Bill, which creates a tax tribunal and a tax ombudsman.
ASUU and other stakeholders are calling for swift action to prevent the passage of these bills and ensure the continued existence of TETFund.