The Academic Staff Union of Universities (ASUU) has expressed strong opposition to the Federal Government’s proposed removal of the education tax, describing the plan as a threat to the survival of Nigerian universities.
ASUU’s National President, Prof. Victor Osodeke, disclosed in an interview with our correspondent that the union would meet with the two Ministers of Education, Tunji Alausa and Suwaiba Ahmad, this year to address this and other pressing challenges in the education sector.
He said the union had written to the Senate President, the Presidency, and other key stakeholders, warning that the implementation of the tax reform bill, which includes the proposed changes to the Tertiary Education Trust Fund, would jeopardise tertiary education.
Osodeke said, “The plan to eliminate the education tax should not stand. We have sent letters to the Presidency, the Senate President and other stakeholders as regards this.
“There is a need to adequately fund education. Education cannot be allowed to stay in the rot. As regards the challenges in universities, we have a meeting with the two Ministers of Education.
Though the dates have not been communicated yet, we will let you know when that is done.”
The proposed Nigeria Tax Bill 2024, currently before the National Assembly, seeks to reduce TETFund’s share of the education tax (referred to as the development levy).
Under Section 59(3) of the bill, only 50% of the development levy would go to TETFund, with agencies like NITDA, NASENI, and NELFUND receiving the remaining portions.
By 2030, TETFund would receive 0% of the levy, significantly reducing its capacity to fund infrastructural development, postgraduate training, and research in public tertiary institutions.
ASUU has labelled the move illegal and vowed to resist any attempt to divert funds from TETFund to other agencies not recognised by the Act establishing the Fund in 2011.
In addition to the tax reform concerns, ASUU accused the government of failing to remove university academics from the controversial Integrated Personnel and Payroll Information System. The union has long argued that IPPIS does not suit the unique needs of the academic environment.
Osodeke said the meeting with the education ministers, though not yet scheduled, would focus on resolving challenges affecting the education sector.
For over 25 years, TETFund has been a critical source of funding for Nigerian public tertiary institutions, supporting infrastructural development, postgraduate training, and research capacity building.
ASUU maintains that any reduction in TETFund’s resources would undermine the progress made so far in the education sector.
