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Home»Education»Proposed tax bill threatens to dismantle TETFund, ASUU alleges
Education

Proposed tax bill threatens to dismantle TETFund, ASUU alleges

Abdoulaye KayBy Abdoulaye KayJanuary 15, 2025Updated:January 15, 2025No Comments3 Mins Read
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The Sokoto Zone of the Academic Staff Union of Universities (ASUU) has raised alarm over the proposed Nigeria Tax Bill 2024, alleging that the bill seeks to dismantle the Tertiary Education Trust Fund (TETFund) “through the back door.”

During a press conference held at the NUJ Press Center in Sokoto on Wednesday, the zonal coordinator, Dr. Abubakar Sabo, criticized provisions in Section 59(3) of the proposed bill, which significantly alter TETFund’s funding structure.

According to Dr. Sabo, the bill stipulates that only 50% of the Development Levy will be allocated to TETFund in 2025 and 2026, with the remainder distributed to other agencies such as the National Information Technology Development Agency (NITDA), the National Agency for Science and Engineering Infrastructure (NASENI), and the Nigerian Education Loan Fund (NELFUND). By 2030, TETFund will receive no allocation from the Development Levy.

“This effectively abolishes the Education Tax, redirecting funds to NELFUND at the expense of TETFund’s vital role in advancing higher education,” Dr. Sabo stated.

The union underscored TETFund’s unparalleled contributions to Nigerian public tertiary education, including infrastructural development, postgraduate training, and research capacity enhancement. ASUU described the bill as a direct threat to the progress achieved in the sector over the past 15 years.

“TETFund has been the backbone of infrastructure development in our institutions. Redirecting funds from TETFund to another agency is unlawful and a gross misstep that could roll back the progress made in positioning Nigerian universities for global competitiveness,” the zonal coordinator emphasized.

ASUU noted that TETFund currently supports 244 public tertiary institutions, comprising 96 universities, 72 polytechnics, and 76 colleges of education. The fund’s annual assistance has mitigated labour disputes, facilitated extensive renovations, and supported staff development, contributing to stability in the education sector.

ASUU called on the National Assembly, particularly its leadership and relevant committees, to safeguard TETFund from being eroded under the guise of tax reform.

“This proposed taxation system is akin to sacrificing a parent to nurture a newborn child—an unethical and illogical act,” Dr. Sabo remarked.

The union also highlighted the inspiration drawn by Ghana’s Education Trust Fund (GETFund) from TETFund, as well as visits by representatives from other African countries seeking to emulate its model.

“It is imperative for Nigeria to enhance the efficiency and sustainability of TETFund, not contemplate its emasculation,” Dr. Sabo added.

ASUU urged Nigerians to hold the government accountable for any adverse outcomes stemming from the perceived neglect of university education and the academic workforce.

“What went wrong that the government now treats university education and its academic staff with disdain? Why dismantle the only agency projecting the modest achievements of public universities in Nigeria?” Dr. Sabo questioned.

The Sokoto Zone reaffirmed its commitment to defending TETFund and preserving public tertiary education, urging all stakeholders to resist any legislative actions that could undermine the agency’s existence.

ASUU concluded with a stern warning: “Nigerians should be prepared for the consequences of neglecting university education. The government must take responsibility for its actions.”

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