Increase in Education Tax Improves Tertiary Institutions Development- TetFund

The Executive Secretary of Tertiary Education Trust Fund (TETFund), Arch. Sonny Echono says the recent increase in education tax from 2.5% to 3%, has positioned the Fund for greater impact, as it provides opportunities for improving infrastructure, academic programmes, and accessibility for all students.

He stated this at a one-day strategic interaction with heads of beneficiary TETfund institutions held in Abuja, Nigeria.

The beneficiary institutions include Universities, Polytechnic, and Colleges of education in Nigeria.

He said the development represents a significant stride for the intervention agency to carry out more of its responsibilities.

“The increase last year in the Education Tax from 2.5% to 3% authorized by the Commander-in-Chief, President Bola Ahmed Tinubu represents a significant stride for TETFund. This change reinforces the government’s dedication to strengthening Nigeria’s educational framework,” he said.

He urged stakeholders to find ways of connecting the nation’s education system with the industrial sector for mutual benefits.

“We urge all stakeholders to actively engage in building these partnerships. Let us explore innovative ways to connect our institutions with industry leaders, fostering a symbiotic relationship that benefits both our students and the economy,” he added.

Echono said the heads of TETFund beneficiary institutions have pivotal roles to play in actualizing the mandate of the Fund, as such it is crucial for the stakeholders to engage constructively to set a clear course for the Fund’s direction and operational priorities.

“TETFund’s purpose is to empower our nation’s human capital, addressing the urgent need for capable, skilled professionals across all sectors. Established in response to the deficits in our tertiary education sector, TETFund began as the Education Tax Fund in 1993, transitioning in 2011 to its current form with a commitment to enhancing the quality of Nigeria’s public tertiary institutions through Education Tax contributions,” he said.

According to him, the interaction is a strategic engagement, which marks a new chapter for the board, where it aligns efforts with stakeholders to optimise performance and enhance the quality of Nigeria’s tertiary education.

In a remark, the President of the Academic Staff Union of Universities (ASUU) Prof. Emmanuel Osodeke called for the utilization of the backlog of unspent funds allocated to public tertiary education in the country.

Professor Osedeke said the continued stagnation of these resources could hinder the growth and development of the sector urging university leaders to fight for themselves and not rely on others to negotiate their future.

He warned that the two bills before the National Assembly proposing tax changes to TETFund, if passed could drastically affect Nigerian universities and the nation’s education system as a whole.

According to him, tax reductions may seem beneficial to industries, but they risk crippling higher education funding.

“I want to say that we have a lot of problems. If we don’t work hard, we cannot be sitting here in the next six years.

“Whether we will be here or not in the next six years will depend on the National Assembly. I am so happy the Senate and the House of Representatives are here. The information available to us as a union is that there are two sets of bills in the National Assembly.

“One from the executive and one from the legislature, all concerning TETFund. And the one from the executive arm of government is contained in a page out of 260 tax reviews. And I am very sure the president will not have the time to look at the details when he is reading.

“And what is there? That by the year 2025, they will increase the percentage of tax paid by industries to 4%. TETFund will receive 50% of it. By 2027, funds accruing to TETFund will be reduced to 3% from 4%.

“And all of us, if we still care about Nigerian universities, we must make sure that this bill does not pass. But once it goes through, Nigerian universities will stop,” Osodeke said.

He added that the Union found out that there is a lot of money stuck in the country’s central bank over the past 20 years, which many universities have not been able to utilize. He said the money could be used to fund some of the abandoned projects on campuses.

“You have Projects abandoned, some in the upwards of 10 years, and part of the money is still there in the Central Bank. It has accumulated. Let’s find ways of how it can be utilized,” he said.

He said the union welcomed initiatives towards proper guidelines for the conception and monitoring of TETFund projects.

He decried poor remuneration paid to University lectures in Nigeria, which he said is the lowest on the African continent. A development, he said, has reduced the country’s global competitiveness.

“More salaries would attract foreign lecturers which is part criteria for global competitiveness. Efforts should also be made towards building more laboratories and equipping them rather than physical infrastructures.”

He urged lectures not to be intimidated as contract awards should be procedural, stressing that when there are no external interventions, projects could be constructed at a lesser cost by the universities.

On his part, Aminu Bello Masari, the chairman of the board of Trustees of TETFund, called for the removal of politics from the education sector, if the nation is to experience any real development.

He urged universities to start devising means of creating their funds rather than depending solely on the government.

“Let me start by commending ASUU for creating this intervention agency 21 years ago. And the fund has kept faith. That’s why we have some of the best institutions in the country. After 21 years, some institutions, with no apologies, and some people outside, see that the fund is not just an intervention agency, but an agency that must shoulder its responsibilities in education, which I believe is not right.

“I think it is high time we start to think about how to fund education in a sustainable way,” he said.

The chairman of the committee of Pro chancellors, Dr. Yayale Ahmed, decried the poor funding of the education sector in Nigeria stressing that poor salaries to teachers and lecturers inhibit progress in the nation’s education system as well as international competitiveness. He said payment to teachers should not be seen as a mere personnel cost

“Teachers salaries must be a dedicated item. National Assembly must take education as priority. Funds must not only be budgeted but released on time and make sure it’s spent based on transparency,” he said