ASUU Criticizes FG’s Proposal To Abolish TETFund via Tax Reform Bills

ASUU Criticizes FG’s Proposal To Abolish TETFund via Tax Reform Bills

The Academic Staff Union of Universities (ASUU) has strongly condemned the Tax Reform Bills, which include…READ MORE…

a provision to eliminate the Tertiary Education Trust Fund (TETFund). ASUU President, Professor Emmanuel Osodeke, warned that abolishing TETFund would devastate Nigeria’s public education system and trap the children of low-income families in a cycle of poverty.

In an interview with Channels TV on Thursday, Professor Osodeke emphasized that the federal government submitted the bill to the National Assembly without consulting stakeholders in the education sector.

“TETFund is the primary source of funding for public universities, so dismantling it would effectively destroy these institutions,” he explained. “TETFund was established through ASUU’s efforts. It’s unacceptable to formulate tax laws without engaging with ASUU for input before presenting them to the National Assembly.”

He also pointed out that neither Vice Chancellors nor Pro Chancellors were consulted on this significant decision. “A group of people decided to abolish TETFund over the next five years without consulting those who helped create the fund that has revitalized Nigerian public universities. This is not how a democratic system operates,” Osodeke asserted.

Professor Osodeke further revealed that the plan involves replacing TETFund with the Nigerian Education Loan Fund (NELFUND). He urged the federal government to explore alternative funding for NELFUND, proposing a modest deduction from the Value Added Tax (VAT).

“Let the act that established TETFund in 1993 continue to exist. If you wish to implement NELFUND, find a different funding source rather than dismantling the existing support,” he advised. “Consider taking 1% or 2% of VAT to fund NELFUND. Don’t rob from Peter to pay Paul; seek out additional funding mechanisms.”

He highlighted that 90% of the infrastructure present in Nigerian universities, polytechnics, and colleges today resulted from TETFund initiatives. However, the current tax bill proposes to eliminate TETFund by 2030, merging it with NASENI and NITDA while reducing its funding to just 2%.

The ASUU President criticized Taiwo Oyedele, the Chairman of the Presidential Committee on Tax and Fiscal Reform, for claiming that no part of the bill suggested the scrapping of any agency. “He is merely playing with semantics. TETFund operates independently of the national budget; its funds come from companies as part of their investment in education,” Osodeke clarified.

“In other countries, businesses financially support universities through grants, a practice that is minimal in Nigeria. The existing 2% is seen as an investment in developing graduates who will later contribute to the workforce,” he added.

Osodeke pointed out that by 2025-2026, TETFund would access 50% of a consolidated fund, dropping to 33% in 2026-2027, and by 2030, TETFund could face complete dissolution. He noted that other African nations are looking to replicate TETFund’s success, citing Ghana’s 2021 establishment of the Ghana Education Trust Fund (GETFUND) sourced from VAT.

He concluded, “If you wish to launch NELFUND, we are willing to collaborate with you to identify funding solutions that do not undermine the existing framework.

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