The Students’ Wing of the Coalition of Northern Groups (CNG-SW) on Tuesday commenced protests against the proposed Tax Reform Bill by the Federal Government, describing it as a significant threat to education and development in Northern Nigeria.

They also highlighted the adverse impact on organisations like the Tertiary Education Trust Fund (TETFund) and the National Information Technology Development Agency (NITDA), which have been instrumental in supporting education and innovation.

Speaking during the protest in Abuja, the National Coordinator of CNG-SW, Hassan Adamu, criticized the bill, stating that it would cripple essential educational institutions and initiatives, particularly in the north.

In a statement, the coalition warned that the proposed reforms could create a generation of indebted youth while undermining educational development in the north.

He said: “There is a deliberate attempt to narrow the NELFUND coverage in the Northern region as the total number of Federal and State tertiary institutions in the region is more than 96. In Zamfara state, for instance, only four (4) out of the ten (10) public tertiary institutions were covered; Sokoto only 4; Kano only 4; 13 and so on. Priority was also given to federal institutions, with few state-owned institutions. Tertiary institutions taking advantage of the Student Loan Scheme to increase tuition fees for the 2024/2025 session will abuse the scheme. The hike in tuition fees with the current economic reality will be a catastrophe for students, and the scheme will be perceived as another form of extortion.

“The delay in refunds can give unpatriotic public servants room to embezzle the money. It is needless to remind us how snakes and other animals were swallowing money years ago.

“The pressure of tuition fee payment deadlines, usually issued by many tertiary institutions, has led to the withdrawal of indigent students, missing academic activities such as examinations, and in some cases, leading to poor academic performance or total forfeiture of their academic pursuits, which has led to the increased number of dropouts in northern institutions to up to 60 per cent. Tax will now receive 20% of the levy in 2025 and 2026 and nothing after 2026, according to the proposed Tax Reform Bill.

“The implication is that NITDA will not have funds to promote digital inclusion and innovation initiatives. It is imperative to state that the Bill will favour NELFUND, which will increase access to student loans that will trap our youth in bondage.

“NELFUND is currently funded by 1% deduction collected from taxes, levies, and duties collected by the Federal Inland Revenue Service (FIRS). It will now receive 25% of the levy in 2025 and 2026, 33% from 2027 to 2029, and 100% by 2030, according to the new Tax Reform Bill.

“The implication of this is that the proposed bill if passed, will divert funds from critical sectors such as infrastructure and innovation initiatives with long-term development impacts.

“It shifts attention to student loans; this could also give reason for public tertiary institutions to increase their tuition fees. It could also make our public tertiary institutions one revenue-generating entity, paving the way for the privatization of our tertiary institutions, thereby making it inaccessible to the masses.

“This will also saddle our youth with an unsustainable debt burden. This mirrors the country’s chronic national indebtedness, and as well risks creating a generation of financially constrained youth that is incapable of contributing meaningfully to the economy.”

It also condemned any attempt to use the student loan scheme as a justification for privatizing public tertiary institutions, which would make higher education inaccessible to many.

The protest is part of CNG-SW’s broader advocacy to protect the interests of northern students and ensure that education remains a priority in national policies.

The students call on the federal government to discontinue the reform process and give room for a holistic consultation and amendment before legislation.

He added, “We call on the northern legislators and governors to study the Bill adequately in order to come up with a practical way out.

“The NELFUND Disbursement in Northern Institutions and Shortcomings: The Coalition of Northern Groups Students’ Wing (CNG-SW), as the vanguard of the Federal Government Student Loan Scheme, having participated actively in sensitizing the students, parents, and the general public about the Student Loan Scheme (Bill and Act), as well as in sensitization and mobilization of students to apply for the loan, have critically studied and analyzed the release of disbursement statistics by the National Education Loan Fund (NELFUND) across tertiary institutions in the Northern region.”