ASUU warns of TETFund extinction under proposed tax bills
The Academic Staff Union of Universities has called on the National Assembly to protect TETFund from being dismantled under the Nigeria Tax Bill 2024 as it reminded lawmakers of their responsibility to ensure accessible and affordable higher education for all Nigerian students.
The body stressed that the plan to diminish TETFund in favour of an unproven loan scheme was “illogical, myopic, and anti-people, especially the middle class and the lower strata of society.”
The Zonal Coordinator for ASUU-Nsukka Zone, Raphael Amokaha, speaking on Thursday in Makurdi, called on the federal and state governments to fulfil their constitutional duty to fund tertiary institutions adequately, not just through interventions like TETFund.
He said the education tax that the government proposed to end by 2030 specifically states that only 50 per cent of the development levy would be made available to TETFUND in 2025 and 2026 while the National Information Technology Development Agency, the National Agency for Science and Engineering Infrastructure and NELFUND would share the remaining percentages.
He said, “This education tax that the government has proposed to end by 2030 is the source of funds for TETFund. Section 59(3) of the Nigeria Tax Bill (NTB) 2024, as proposed, specifically states that only 50 per cent of the Development Levy would be made available to TETFund in 2025 and 2026,
”TETFund will also receive ‘66.7 per cent in 2027, 2028 and 2029 years of assessment’ but zero per cent in the 2030 year of assessment and thereafter.’”
He further warned that by 2030, all proceeds from the Education Tax would be redirected towards NELFUND, an agency primarily concerned with student loans.
He argued that this move would suffocate TETFund, which plays a crucial role in supporting university infrastructure and development.
“This simply means that by 2030, all the proceeds from the Development Levy will be channeled into NELFUND, an agency that has not firmly taken root yet if it ever will, while TETFund will be strangulated to death. It must be stated here very clearly that taking any percentage out of the Education Tax (Development Levy) to service another agency not known to the TETFund Act 2011 is illegal,” Amokaha stated.
ASUU, however, raised concerns that less than half of Nigerian students will benefit from the student loan scheme, as outlined in the tax reform bill.
The union has argued that the scheme, alongside the proposed phasing out of the Tertiary Education Trust Fund (TETFund), will negatively impact public universities and exacerbate existing funding issues.
He emphasised that the union is horrified by the contents of the bill, particularly its implications for education funding.
“Without prejudice to other sections of this bill, ASUU-Nsukka Zone and indeed ASUU National are horrified by the contents of this bill with regards to the Education tax (also called development levy) and its implication for TETFund,” Amokaha stated.
Amokaha explained that one of the major points of contention is the proposal to end the education tax, which currently funds TETFund, by 2030.
Reflecting on the historical context of TETFund’s establishment, Amokaha reminded the media that the union fought hard for the creation of the fund, which has since been instrumental in rejuvenating Nigeria’s public universities. “We can understand from history why ASUU is so passionate and protective of TETFund. But beyond being a baby of the union, we are more concerned about the achievements of TETFund, especially as we believe the agency has not even realised its full potential yet,” he said.
Amokaha highlighted that TETFund’s contributions have been transformative. “A simple, verifiable illustration of the accomplishments of this agency, even without recourse to figures, is the fact that more than half of undergraduate students in our public universities today will be out of school because they will not have been able to get placement in a university. This was a home-grown solution to address issues of funding to rehabilitate decaying infrastructure, restore the lost glory of education and confidence in the system, as well as consolidate the gains thereto; and to build the capacity of teachers and lecturers.”
The ASUU leader also pointed out that TETFund’s contributions are visible across many campuses. “If you take a stroll around these campuses and take inventory of the buildings, at least 80% of the buildings carry the TETFund logo, which shows they were either constructed by TETFund or renovated by TETFund, including street lighting and school clinics, not to mention equipment in the laboratories,” he said.
Amokaha noted that TETFund currently supports 244 public tertiary institutions, including 96 universities, 72 polytechnics, and 76 colleges of education. “Federal and state-owned tertiary institutions are currently referred to as ‘TETFund Institutions’ because most projects are funded from this interventionist agency, on which a death sentence has been passed through the Nigeria Tax Bill 2024,” he stated.
The union also criticized the proposal to redirect funding from TETFund to NELFUND, which would primarily handle student loans.
“The student loan is clearly designed in such a manner that less than half of Nigerian students will benefit from the scheme, and its sustainability has not been tested in any way, whereas any lecture room, laboratory, or clinic erected by TETFund will serve all the students,” Amokaha added.
