The Academic Staff Union of Universities (ASUU) has issued a strong warning to the federal government over its plan to eliminate the Tertiary Education Trust Fund (TETFund) by 2030, arguing that this action could severely impact public higher education in Nigeria.
Prof. Emmanuel Osodeke, National President of ASUU, said in a statement that he is deeply concerned about the ramifications of the Nigeria Tax Reform Bill 2024, which is presently being considered by the National Assembly. He underlined that dissolving the TETFund will worsen the inaccessibility of postsecondary education for underprivileged students nationwide in addition to endangering years of investment.
Central to ASUU’s concerns is Section 59 (3) of the proposed Nigeria Tax Bill 2024 (NTB), which details the distribution of the Development Levy—an education tax that currently funds TETFund.
According to the bill, TETFund would receive only 50% of the levy in 2025 and 2026, with the remaining funds allocated to the National Information Technology Development Agency (NITDA), the National Agency for Science and Engineering Infrastructure (NASENI), and the Nigerian Electricity Liability Management Company (NELFUND). By 2030, the proposal stipulates that NELFUND would receive 100% of the levy, effectively cutting off TETFund, NASENI, and NITDA from any funding.
Prof. Osodeke raised alarms about the implications of this shift, warning that the erosion of TETFund funding would likely lead to skyrocketing tuition fees at public universities, making education unaffordable for many. He remarked, “Phasing out TETFund will threaten the existence of public tertiary education in Nigeria and undermine all previous efforts to establish the Education Tax Fund.”
He further highlighted TETFund’s crucial role in enhancing public universities, noting that improvements in infrastructure and academic facilities have largely been made possible through its support. “A visit to any public university will reveal that the new facilities and well-maintained structures are a direct result of TETFund investments,” Osodeke pointed out.
The head of ASUU cautioned that the TETFund’s phase-out could have disastrous effects on Nigerian public education and encouraged the federal government to reevaluate its intentions. He warned that many institutions could struggle to exist without TETFund, endangering the future of higher education.
