ASUU Criticizes Tax Reform Bills, Warns Phasing Out TETFund Will Damage Nigerian Universities
The Academic Staff Union of Universities (ASUU) has strongly opposed the federal government’s plan to phase out the Tertiary Education Trust Fund (TETFund), which has significantly improved Nigeria’s tertiary education system over the past three decades.
ASUU warned that reducing TETFund’s funding in favour of financing the Nigerian Education Loan Fund (NELFUND) would harm public universities in the country. The union stressed that TETFund, which is funded through company income taxes, has been the primary source of financing for the development of Nigerian universities, and its erosion would cripple the sector.
ASUU president, Emmanuel Osodeke, criticized the government’s handling of the tax reform bills, which propose to gradually reduce TETFund’s allocation. He expressed disappointment that key stakeholders, including ASUU and university administrators, were not consulted before the bills were presented to the National Assembly. He suggested that instead of diminishing TETFund’s role, the government should consider using a portion of Value Added Tax (VAT) to fund NELFUND, rather than cannibalizing existing education funding to support a new initiative.
Osodeke also highlighted that most of the physical infrastructure in Nigerian universities today is a direct result of TETFund’s investments, which were largely made possible through the efforts of ASUU members who fought for its establishment. He pointed out that countries like Ghana have adopted similar models, funding their education trust funds through VAT. ASUU views the government’s proposal as a threat to public education, which has already been underfunded, with less than 10% of Nigeria’s budget allocated to education, far below the regional average of 15%.
Additionally, ASUU criticized the NELFUND’s structure, arguing that it is not suitable for Nigeria, where the majority of students come from low-income families. The union expressed concern that the loan system would burden students with debt, especially as university fees are rising. Osodeke emphasized the importance of maintaining TETFund for the future of Nigerian education, noting the sacrifices made by those who fought for it, and warned that dismantling it would result in irreversible damage to the nation’s educational system.
