The Academic Staff Union of Universities (ASUU) has urged Nigerians to resist the Federal Government’s proposed shutdown of the Tertiary Education Trust Fund (TETFund). During a Lagos Zone conference at the University of Lagos, the union emphasised the critical role the institution has played in addressing Infrastructure decay and funding deficiencies in the country’s tertiary schools. The union warned of severe consequences for public Education and the Economy if TETFund is replaced by the Nigeria Education Loan Fund (NELFUND), as outlined in the Tax Reform Bills before the National Assembly.
Also, the association emphasised that TETFund was created out of necessity to address acute underfunding and infrastructural decay in public universities. Over the past 15 years, it has contributed to developing teaching infrastructure, research facilities, and staff training programs, ensuring quality education for the less privileged. The union pointed out that many state-owned universities rely heavily on this institution for their operations, with a notable portion of their structures, laboratories, and academic training financed by the agency. They further expressed concern that abolishing it would lead to a regression in the tertiary education system.
Implications of replacing the agency with NELFUND.
Under the proposed Tax Reform Bills, the Education Tax Act would be replaced with the Education Development Fund, leading to TETFund’s eventual extinction by 2030. The union criticised this move as short-sighted and self-serving, arguing that NELFUND, which focuses on providing student loans, has a different mandate and cannot replace the agency’s institutional support functions. However, they questioned the rationale of offering student loans without addressing universities’ poor infrastructure and academic resources. The union believes that dismantling this agency would undermine the progress made in tertiary education and exacerbate existing challenges.
Meanwhile, the education organisation noted the potential chaos and inefficiencies in transitioning from TETFund to NELFUND. The proposed distribution of the Education Tax Revenue under the new framework would reduce the agency’s share over the next few years, with a complete cessation of funding by 2030. This gradual reduction would cripple their operations and jeopardise ongoing projects. The union expressed concerns about the readiness and effectiveness of NELFUND, which has yet to establish a solid operational framework. Diverting funds from this institution to untested initiatives risks leaving public universities in disrepair.
Historical context and ASUU’s advocacy for TETFund.
Their advocacy for the agency stems from its historical struggle to secure sustainable funding for public universities. The agency was established following extensive efforts to address the systemic underfunding of tertiary education. ASUU noted that TETFund has not yet reached its full potential but has substantially improved educational standards. The union stressed that dismantling such a critical institution would undo years of progress and compromise the future of Higher Education nationwide. Moreover, recent increases in the tax rate have bolstered the fund’s capacity to support public tertiary institutions.
These funds are allocated to improve physical infrastructure, instructional materials, research, and academic staff development. By ensuring that these critical areas are adequately funded, TETFund has become indispensable to the functioning of public universities. They continue to argue that redirecting this Revenue to NELFUND would undermine these achievements and lead to a decline in educational quality. As a result, they warned that the proposed changes would have far-reaching consequences for the education sector. Without the agency, public universities would struggle to maintain infrastructure, retain qualified staff, and conduct meaningful research.
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Lastly, they called on Nigerians, including students, parents, and Civil Society groups, to advocate for the agency’s preservation. The union stressed the need for constructive dialogue between the government, educational stakeholders, and the public to address tertiary education’s challenges. By engaging in informed discussions, stakeholders can identify alternative strategies that strengthen the education system without jeopardising existing achievements. Moving forward, the union reiterated its commitment to protecting public education and ensuring that all Nigerians have access to quality learning opportunities.