The Academic Staff Union of Universities (ASUU) has strongly condemned sections of the proposed Nigeria Tax Bill 2024, warning that its implementation could severely undermine the Tertiary Education Trust Fund (TETFund) and the broader education sector.
Addressing a press conference at the University of Abuja on Thursday, ASUU’s Abuja Zonal Coordinator, Salahu Lawal, stated that the bill, if passed, would reduce funding for TETFund in its first two years and eliminate it entirely by 2030.
The union argued that TETFund, established in 1993 following extensive negotiations with the government, has been pivotal in funding infrastructural development and academic training in Nigerian universities.
ASUU specifically criticised Section 59(3) of the bill, which proposes that only 50% of the Education Tax—restructured as a 4% development levy—be allocated to TETFund between 2025 and 2026. The remaining funds would be distributed among the National Information Technology Development Agency (NITDA), National Agency for Science and Engineering Infrastructure (NASENI), and the Nigerian Education Loan Fund (NELFUND).
The union expressed concern that diverting funds to NELFUND, which it has consistently opposed, could push public tertiary institutions toward increased tuition fees and force students into unsustainable debt.
“The phasing out of TETFund would pose a grave danger to Nigeria’s tertiary education system,” Mr. Lawal said, noting that TETFund’s interventions have been critical for physical infrastructure and human capital development across the country.
In the Abuja zone—comprising five universities—ASUU highlighted that TETFund has been the primary source of funding for staff training, classroom construction, laboratory development, and more.
In the case of Federal University of Lafia, it stated that over 90% of its 55 physical structures were funded by TETFund.
On University of Abuja, it said more than 70% of physical structures, laboratories, and furnishing were provided through TETFund while TETFund sponsored over 80% of staff of Federal University of Technology, Minna, who obtained advanced degrees between 2010 and 2023 and funded over 40 major structures.
ASUU urged the National Assembly to protect TETFund under the proposed tax reforms, emphasizing that its survival is vital for the future of Nigerian education.
Meanwhile, the federal government has defended the bill. Presidential spokesperson Bayo Onanuga explained that the reform aims to consolidate taxes into a single levy, with agencies like TETFund and NITDA continuing as beneficiaries.
He added that the bill provides a transition period until 2030, allowing agencies to explore alternative funding sources.
ASUU has vowed to resist any attempt to weaken TETFund, asserting that the survival of tertiary education in Nigeria depends on its sustained funding.
