The Academic Staff Union of Universities (ASUU) has called on the National Assembly to reject provisions in the proposed 2024 Nigeria Tax Bill that threaten to abolish the Tertiary Education Trust Fund (TETFund). In a statement issued by ASUU President, Professor Emmanuel Osodeke, the union expressed grave concern over the potential impact of dismantling TETFund, which has been a cornerstone of tertiary education development in Nigeria for over 15 years.
Professor Osodeke warned that the proposed bill seeks to transfer TETFund’s funding responsibilities to the newly established Nigerian Education Loan Fund (NELFUND) by 2030, effectively dissolving TETFund’s critical role in supporting infrastructure, postgraduate training, and research in public tertiary institutions.
According to ASUU, the bill includes a provision in Section 59(3) stating that:
- From 2025, only 50% of the Development Levy (education tax) will be allocated to TETFund, with the remaining funds distributed among NELFUND, NITDA (National Information Technology Development Agency), and NASENI (National Agency for Science and Engineering Infrastructure).
- From 2027 to 2029, TETFund’s share will increase to 66.7%, but from 2030 onwards, it will receive 0%, with all funds redirected to NELFUND.
ASUU strongly opposes these changes, emphasizing the negative implications for education in Nigeria:
- Erosion of Educational Gains: TETFund has been instrumental in reducing industrial disputes in tertiary institutions by funding infrastructure development, research, and staff training. Removing its funding source would destabilize this progress.
- Impact Beyond Tertiary Education: TETFund indirectly supports the entire education system by helping produce quality teachers and staff for all levels of education, from kindergarten to university.
- Global Competitiveness: The fund’s efforts have improved the quality of Nigerian universities and graduates, positioning them for global competitiveness.
Professor Osodeke highlighted TETFund’s success as a model for other African countries like Ghana, which established its own Education Trust Fund (GETFund) based on Nigeria’s example. He described suggestions that TETFund should find alternative funding sources as “spurious and ill-advised,” pointing out that the institution’s existence relies on the statutory Development Levy.
ASUU urged Senate President Godswill Akpabio and House Speaker Tajudeen Abbas to intervene and prevent the abolition of TETFund. The union emphasized that safeguarding TETFund aligns with Nigeria’s national development objectives and is critical to maintaining stability in the education sector.
ASUU also called on the Nigerian government to prioritize sustaining and improving TETFund rather than weakening it, emphasizing its far-reaching impact on education, infrastructure, and national progress.
ASUU’s position underscores the critical role of TETFund in advancing Nigeria’s educational and developmental goals. The union hopes that the National Assembly will act decisively to protect the institution and ensure the continuity of its transformative contributions to the education sector.