ASUU Urges NASS to Protect TETFund from Tax Reform

The Academic Staff Union of Universities (ASUU) has called on the National Assembly, particularly the Senate President and the Speaker of the House of Representatives, to protect the Tertiary Education Trust Fund (TETFund) from provisions in the proposed Nigeria Tax Reform Bills 2024.

In a statement issued on Friday by its National President, Prof. Emmanuel Osodeke, ASUU expressed strong opposition to the bills, warning that their current provisions could jeopardize the critical support TETFund provides to Nigeria’s education sector.

“ASUU has observed with keen interest the ongoing debate on the review of the tax system under the Nigeria Tax Bill 2024. Of serious concern is the proposed abrogation of the Education Tax, which funds TETFund’s activities,” the statement read.

The union highlighted Section 59(3) of the proposed bill, which stipulates a reduction in TETFund’s allocation, with only 50% of the development levy allocated to the fund in 2025 and 2026. The remaining portion would be shared among the National Information Technology Development Agency (NITDA), the National Agency for Science and Engineering Infrastructure (NASENI), and the Nigerian Education Loan Fund (NELFUND). By 2030, TETFund would receive no allocation from the levy, with all funds redirected to NELFUND.

ASUU expressed alarm at the proposal, describing it as “dangerous and unpatriotic.” It warned that diverting education tax revenue to NELFUND would severely undermine TETFund’s programmes and Nigeria’s educational development.

“The far-reaching implication of this new tax regime is that from 2030, all revenue generated from the Development Levy will be ceded to NELFUND, leaving TETFund without resources. This move is not only worrisome but also detrimental to Nigeria’s national development objectives,” the statement said.

The union underscored the critical role of TETFund in advancing tertiary education, calling its potential dissolution a major setback to educational growth in the country.

“Abrogating the TETFund Act 2011, by design or default, will be a grave disservice to education and Nigeria as a whole. ASUU will not stand by and watch the denigration or obliteration of this institution, which remains a testament to our constructive engagements with the government since 1992,” Osodeke said.

ASUU urged lawmakers to take decisive action to ensure TETFund is excluded from provisions of the Nigeria Tax Bill 2024, emphasizing the need to preserve the fund’s role in driving educational development.