ASUU Sends Warning To FG Concerning Tax Reform Bill

The Academic Staff Union of Universities (ASUU) has issued a stern warning against the federal government’s proposal to phase out the Tertiary Education Trust Fund (TETFund) by 2030, calling it a move that could devastate public higher education in Nigeria.

The union argues that dismantling TETFund would undermine years of investment in the fund and render tertiary education increasingly inaccessible, especially to the country’s less privileged students.

This warning was issued by ASUU National President, Prof. Emmanuel Osodeke, in response to provisions within the Nigeria Tax Reform Bill 2024, which is currently before the National Assembly.

The bill includes several key legislative proposals, including the Nigeria Tax Bill 2024 (NTB), the Nigeria Tax Administration Bill 2024 (NTAB), the Nigeria Revenue Service Establishment Bill 2024, and the Joint Revenue Board Establishment Bill 2024, all aimed at consolidating the country’s tax framework.

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A particular point of concern is Section 59 (3) of the NTB 2024, which outlines the distribution of the Development Levy—an education tax that currently funds TETFund.

Under the proposed legislation, TETFund would receive 50% of the levy in 2025 and 2026, with the remaining share divided between NITDA, NASENI, and NELFUND.

However, by 2030, NELFUND would be allocated 100% of the levy, while TETFund, NASENI, and NITDA would receive no funding.

Osodeke raised alarm over this shift, arguing that such a move signals an intention to gradually dismantle TETFund.

He warned that if the fund loses its share of the levy, it would likely lead to a dramatic rise in tuition fees at public universities, making education unaffordable for many students. “Phasing out TETFund will threaten the existence of public tertiary education in Nigeria and render all previous efforts to establish the Education Tax Fund futile,” Osodeke said.

He also underscored TETFund’s pivotal role in the development of public universities, noting that many improvements on campuses, from infrastructure to new academic facilities, have been made possible through TETFund support. “If you visit public universities, you’ll see that anything new or well-maintained on campus has been provided by TETFund,” Osodeke emphasized.

The ASUU president called on the federal government to reconsider its plans, stressing that phasing out TETFund would have catastrophic consequences for public education in Nigeria. He warned that without TETFund, many public institutions would struggle to survive, leaving the future of higher education in jeopardy.