LAGOS — The Academic Staff Union of Universities (ASUU) has issued a warning that the federal government’s plan to phase out the Tertiary Education Trust Fund (TETFund) by 2030 could severely damage public tertiary institutions and education in Nigeria.According to the union, this move would undermine the significant efforts invested in establishing TETFund and create barriers to tertiary education for economically disadvantaged individuals. ASUU National President, Prof. Emmanuel Osodeke, made these comments in response to provisions within the Nigeria Tax Reform Bill 2024, which is currently being reviewed by the National Assembly.
The proposed legislation comprises several key components, 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.
These measures are designed to streamline and consolidate various tax frameworks.A critical concern arises from Section 59 (3) of the NTB 2024, which outlines how the Development Levy—an education tax that currently funds TETFund—will be allocated starting in 2025. Under the proposal, TETFund would receive 50% of the Development Levy in both 2025 and 2026, while other organizations such as NITDA, NASENI, and NELFUND would receive portions of the remainder. However, by 2030, NELFUND is slated to receive the entire levy, leaving TETFund, NASENI, and NITDA with nothing.Osodeke emphasized that if TETFund loses its portion of the levy, it would effectively signal the end of the fund. “Redirecting the full Development Levy to the Student Loan Scheme or NELFUND will compel public tertiary institutions to raise tuition fees to unsustainable levels. Phasing out TETFund poses a grave threat to tertiary education in Nigeria, rendering the extensive efforts that led to the establishment of TETFund redundant,” he stated.He further highlighted TETFund’s critical role in supporting public universities, warning that without it, many institutions could face collapse due to insufficient infrastructure and resources. “A visit to public tertiary institutions reveals that any new or functional facility on campus has been financed by TETFund,” Osodeke noted.In conclusion, he urged the federal government to reconsider its plans, cautioning that their execution would dramatically undermine public tertiary education in Nigeria.
