The Pro-Chancellor of Achievers University, Owo, Ondo State, Prof. Bode Ayorinde, has called on the Federal Government to exempt universities and other educational institutions from paying taxes, arguing that education should be supported and subsidised rather than treated as a commercial enterprise.

Ayorinde made the appeal at the institution’s 15th convocation ceremony, warning that multiple taxes imposed on educational institutions are stifling access to quality education and undermining national development.

In his lecture titled: ‘Rethinking taxation in the education sector: Why educational institutions should not be taxed,’ Ayorinde said levies such as company income tax, Value Added Tax, education tax, development levy, billboard and radio taxes, as well as personal income tax on proprietors, place a heavy burden on universities.

He explained that these taxes eat deeply into over 40 per cent of the tuition fees that tax authorities classify as revenues of educational institutions, tagged as ‘companies.’

“What are we producing? Education is not merely a social service; it is an investment in human capital. Nations that have made deliberate efforts to nurture their educational systems have reaped abundantly in productivity, innovation and economic growth,” he said.

Ayorinde argued that education should not be taxed under any circumstance, stating that it should be supported, subsidised and incentivised as a critical sector for national transformation.

He said: “Education is a public good, not a business enterprise to be taxed. Private universities in Nigeria are not established for profit-making in the commercial sense, but to complement government efforts and help close the admission gap,” he said.

According to him, taxing educational institutions could force universities to withdraw scholarships, end free-tuition programmes and increase fees, thereby denying many qualified students access to education.

“President Bola Tinubu and the National Assembly should please be informed and guided that an attempt to impose taxes on educational institutions is to tax knowledge, enlightenment, opportunities, and the future of young Nigerians,” he said, adding that such a policy would be “counter-productive and contrary to global best practices.”

Ayorinde appealed to the Federal Government to implement urgent policy reforms, stating that the government should direct the Federal Inland Revenue Service and the various state boards of internal revenue to grant full tax exemption to all educational institutions, especially universities.

He emphasised that universities should be treated globally as development partners rather than revenue-generating entities. Addressing graduating students, Ayorinde urged them to be good ambassadors of the institution and to shun social vices, including drug abuse.

“Achievers University has equipped you with knowledge and character. May you rise as leaders with integrity, who will make your families proud and help build the prosperous Nigeria we all dream of,” he said.