KEY POINTS
- TETFund hits historic N1.5 trillion in education tax collections for 2024, bolstering Nigeria’s education infrastructure.
- Education tax rate rise from 2.5% to 3%, approved by President Tinubu, fuels TETFund’s record revenue.
- ASUU warns against proposed tax cuts and policy changes that could limit funds for Nigeria’s universities.
Tertiary Education Trust Fund (TETFund) has reached a historic milestone, collecting N1.5 trillion in education tax revenue for 2024. This achievement, reported by The Nation, significantly boosts Nigeria’s educational infrastructure, enabling expanded academic programs, improved facilities, and enhanced access to higher education.
Sonny Echono, TETFund’s Executive Secretary, shared the news at a stakeholders’ meeting in Abuja, emphasizing how this unprecedented revenue will strengthen the nation’s universities.
Tax rate boost drives record revenue
The surge in TETFund’s collections stems from President Bola Tinubu’s 2023 decision to raise the education tax rate from 2.5% to 3%. This move has generated substantial revenue, allowing TETFund to address growing educational demands.
Echono noted that the increased tax rate directly benefits students, improving infrastructure and expanding learning opportunities. “This historic revenue will reinforce Nigeria’s education framework as we enter the 2025 budget cycle,” Echono said.
ASUU raises concerns
Despite its success, TETFund faces challenges. Professor Emmanuel Osodeke, president of the Academic Staff Union of Universities (ASUU), warned that proposed legislative changes could undermine the fund’s ability to support universities.
Osodeke stressed that any reductions in the education tax rate or changes to funding policies could limit resources for higher education. ASUU also raised concerns over bills in the National Assembly that could alter how TETFund allocates resources, which could negatively impact university funding.
Call for sustainable funding models
Aminu Masari, Chair of the newly inaugurated TETFund Board of Trustees, called for a re-evaluation of Nigeria’s education funding approach.
While praising TETFund’s contributions, Masari emphasized the need for universities to explore alternative funding models for long-term sustainability. “We must look beyond government support to ensure universities can become more self-sufficient,” Masari urged.
Strategic shift needed in education funding
As TETFund grows, the conversation about Nigeria’s education funding intensifies. Stakeholders advocate for strategic reforms in funding and governance to ensure universities have the resources needed to thrive in an evolving academic landscape.
The future of Nigeria’s higher education system depends on balancing government support with sustainable funding strategies.
