In their ongoing advocacy to resist the proposed Tax reform bill, the Academic Staff Union of Universities (ASUU) Benin Zone, representing nine universities, has expressed deep concerns over its potential impact, warning that it could destroy public Tertiary Education in Nigeria. The union argues that the planned gradual phasing out of the Tertiary Education Trust Fund (TETFund), as outlined in the bill, will have devastating consequences for public institutions nationwide. Their concern is focused on specific provisions of the Nigeria Tax Bill (NTB) 2024, which indicate a mass reduction in the allocation to TETFund over the coming years.
According to the bill, only half of the Development Levy will be allocated to TETFund in 2025, with the remaining part shared among other government 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 2027, the allocation will be further reduced, and by 2030, TETFund is projected to receive no funding. This gradual withdrawal of funding is seen as a direct threat to the country’s survival and growth of public tertiary institutions.
Implications of the bill on public education funding and development.
Furthermore, the union insists that education should be treated as a public good and warns that the government’s plan to defund this institution will cripple tertiary education. The union has consistently emphasised the critical role that TETFund has played in Nigerian universities’ infrastructural and academic development. It has become a cornerstone of tertiary education development by funding essential projects such as lecture halls, libraries, and laboratories. If implemented, this reform will reverse the progress made in Higher Education and make it increasingly difficult for public institutions to fulfil their mandate.
TETFund’s contributions have been instrumental in addressing the longstanding infrastructural deficiencies in tertiary institutions. Before its establishment, many universities, polytechnics, and colleges of education struggled with inadequate facilities, leading to poor learning conditions. Over the years, TETFund has financed many projects, including constructing classrooms, laboratories, and faculty offices. It has also provided modern teaching equipment and materials that have enhanced the quality of education. Without their continued support, public institutions will face severe financial strain, potentially leading to a decline in academic standards and increased industrial actions by university staff.
Their role in supporting research, innovation, and capacity-building.
Besides infrastructure development, it has been pivotal in promoting research and Innovation in Nigerian universities. Through its research grant initiatives, the fund has supported academic staff in conducting groundbreaking research that contributes to national development. Various scholars have benefited from sponsorships for postgraduate studies, conference attendance, and academic collaborations with international institutions. The loss of the institution funding will stifle research output, limit opportunities for knowledge exchange, and hinder the nation’s ability to compete in the global academic landscape.
Another key area where it has made significant contributions is workforce development. By sponsoring lecturers for higher degrees and providing grants for professional development, the fund has helped to build a highly skilled academic workforce. This support has enabled tertiary institutions to attract and retain talented educators, which is crucial in shaping the country’s future. The potential elimination of this fund under the proposed tax reform bill could lead to a brain drain, with qualified academics seeking opportunities abroad due to a lack of funding for career advancement.
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Lastly, ASUU has pointed out that Nigeria’s education sector is already underfunded compared to global standards. The United Nations recommends that countries allocate at least 26% of their national budgets to education, but Nigeria has consistently fallen short of this benchmark. In recent years, the country’s budgetary allocation to education has hovered between 5% and 7%, with the current administration maintaining a 7% allocation in the 2025 budget. Given this low level of funding, ASUU argues that removing the fund from the equation will further weaken the education sector and undermine national development goals. The union is therefore calling for a collective effort to resist the proposed tax reform bill and to demand sustainable funding solutions for education.