The Academic Staff Union of Universities (ASUU) has expressed grave concerns over the implications of the recently proposed Nigeria Tax Bill 2024, warning that it could severely undermine public universities in Nigeria and leave less than half of Nigerian students benefiting from the new student loan scheme. According to the union, the bill’s provisions—particularly those aimed at phasing out the Tertiary Education Trust Fund (TETFund)—pose a significant threat to the future of education in the country.
Raphael Amokaha, the Zonal Coordinator for ASUU-Nsukka Zone, voiced the union’s apprehension in Makurdi on Thursday, condemning the bill’s provisions related to education funding. He argued that the decision to end the education tax, which has been a critical source of funding for TETFund, by 2030 could stifle the growth and development of Nigeria’s public universities. Amokaha emphasised that the tax, which currently funds TETFund, is essential for the agency’s work in revitalising infrastructure and supporting educational initiatives in universities across the country.
The proposed tax changes would mean that, by 2030, all proceeds from the education tax would be redirected to NELFUND, a relatively new agency set up to handle student loans. TETFund, which has been instrumental in funding infrastructure projects and educational reforms, would no longer receive the lion’s share of the development levy, significantly limiting its ability to support universities. The proposed phasing out of the education tax raises questions about the sustainability of public university funding and could spell a crisis for tertiary education in Nigeria.
Amokaha pointed out that the redirection of funds from TETFund to NELFUND is not only problematic but also illegal under the current TETFund Act, which was created with the sole purpose of fostering the development of public tertiary institutions. He stressed that the union’s opposition to the bill is rooted in its historical advocacy for the establishment of TETFund, an agency that has been crucial in restoring the reputation of Nigeria’s public universities and improving the quality of education.
Highlighting the tangible achievements of TETFund, Amokaha noted that more than half of Nigeria’s undergraduate students currently rely on the agency’s funding to access university education. The union leader underscored TETFund’s visible impact on university campuses, citing the agency’s role in constructing and renovating over 80% of university buildings, as well as funding vital infrastructure like laboratories, street lighting, and school clinics. These contributions have ensured that Nigerian students have access to functional learning environments, something that a loan-based system could not guarantee for all.
ASUU also criticised the student loan scheme under the new bill, noting that its design would only benefit a small fraction of Nigerian students. The union raised concerns about the sustainability of the loan program, pointing out that, unlike TETFund’s broad impact, the loan scheme could exacerbate inequalities by providing limited access to a small number of students, primarily those who can meet the eligibility criteria.
In light of these developments, Amokaha made it clear that ASUU would resist any efforts to dismantle TETFund. The union has vowed to fight against the reallocation of education tax revenues and urged the National Assembly to protect the fund from being undermined under the Nigeria Tax Bill 2024. He called on the federal and state governments to fulfil their constitutional responsibility of adequately funding tertiary education, ensuring that the resources allocated to public universities are not reduced or diverted away from their development.
The union’s stand is a direct call to lawmakers to reconsider the potential consequences of the bill on the future of higher education in Nigeria and to prioritise the long-term benefits of TETFund for students and institutions alike. ASUU’s commitment to protecting the fund highlights the vital role that sustainable funding plays in fostering academic excellence and expanding opportunities for Nigerian students.
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