TETFund cuts raise fears of tuition hikes despite student loan relief

• Move could threaten varsities’ survival, stifle quality, ASUU, NANS warn
• Fund reports progress after Education Tax hike
• Reps members Agbese, Jibrin back Tinubu’s tax reforms
• Obi urges students to seek greener pastures abroad if needed

As Nigerian students celebrate the introduction of the Federal Government’s student loan programme, their joy may be short-lived as public tertiary institutions may once again increase tuition fees.

This development follows plans by the Nigerian government to reduce the allocation to the Tertiary Education Trust Fund (TETFund).

The President of the Academic Staff Union of Universities (ASUU), Prof Emmanuel Osodeke, revealed this in Abuja yesterday during a one-day strategic interactive engagement with heads of beneficiary institutions organised by TETFund.

He warned that the proposed tax changes to TETFund, currently before the National Assembly, could drastically affect funding for Nigerian universities and stressed the need to ensure these bills do not pass if the country truly cares about its education system.

According to Osodeke, reducing the intervention agency’s funding would stifle education financing.

The union leader predicted that Nigerian universities could face extinction in the next six years if these changes are passed and implemented.

“I want to say that we have a lot of problems. If we don’t work hard, we may not be sitting here in the next six years. Whether we will be here or not depends on the National Assembly. The information available to us as a union is that there are two bills in the National Assembly—one from the executive and another from the legislature, concerning TETFund.

“TETFund is just there. The one from the executive arm indicates a single page out of 260 tax review pages, and I am very sure the president might not have the time to go through all the details. What is stated there is that by 2025, they will increase the tax percentage paid by industries to four per cent, of which TETFund will receive 50 per cent. By 2027, TETFund’s allocation will be reduced to three per cent.

“This money should not be handed over to a bank to be disbursed as loans. The so-called NELFund, as a bank, should not be entrusted with funds meant for students. That bill is there.

“If we still care about Nigerian universities, we must ensure that this bill does not pass. Once it does, Nigerian universities will cease to function. So when you hear our team raising concerns, this is what we are talking about.”

Stakeholders have expressed concern that this move could undermine the benefits of the student loan programme, making education less accessible to many students.

The Guardian reports that before President Bola Tinubu signed the Student Loans (Access to Higher Education) Act (Repeal and Re-Enactment) Bill, 2024 into law, federal and state universities had already increased their fees by between 150 per cent and 1,000 per cent.

For instance, the University of Ibadan (UI) raised its fees for fresh students from N20,000 and N30,000 to N203,000 and N412,000. Similarly, the Federal University of Technology, Akure (FUTA), Ondo State, hiked its fees from N37,000 to N127,000.

In an interview with The Guardian yesterday, Lucky Emonefe, President of the National Association of Nigerian Students (NANS), said the move would jeopardise the gains already made and defeat the purpose of the student loan programme, as it would deter students from accessing the facility.

According to him, reducing TETFund’s allocation could hinder improvements to facilities and libraries in tertiary institutions, ultimately affecting the quality of education.

Emonefe added that it might limit opportunities for academic staff to pursue higher degrees and update their research skills, impacting teaching quality. This could stifle research initiatives and innovation, hindering Nigeria’s progress in critical areas like technology, healthcare, and economic development. It could also potentially lead to higher tuition fees, making tertiary education less accessible to students from disadvantaged backgrounds.

Therefore, he called on the government to reconsider its decision. He said, “When we heard that President Bola Tinubu released funds for TETFund, we were happy because TETFund projects are executed to standard and have a positive impact on our institutions.

“The government should think of increasing—not reducing—funding for TETFund. If the government advocates against increasing school fees, reducing TETFund’s allocation would force universities to look inwards.

“We want to appeal to the government to rethink this decision because TETFund is the number one agency for infrastructural development in our institutions. We will all participate during the public hearing. The voice of Nigerian students will oppose anything against infrastructure and funding for TETFund. We need more funding, not reductions.”

This came as the Fund reported that the upward review of the Education Tax from 2.5 per cent to three per cent had yielded impressive results in funding projects for its beneficiary institutions.

The Executive Secretary, Sonny Echono, disclosed this in Abuja yesterday at a one-day strategic interactive engagement with heads of beneficiary institutions.

He said this increase will significantly enhance infrastructure, boost research capabilities, and support faculty development in tertiary institutions.

Echono explained that the increased Education Tax will be instrumental in achieving TETFund’s mandate of providing supplementary support to public tertiary institutions, focusing on rehabilitating, restoring, and consolidating public tertiary education in Nigeria. He noted that this will ultimately improve the quality of education in these institutions.

According to him, the agency has evolved to enhance the quality of public tertiary institutions through Education Tax contributions.

He said, “The increase last year in the Education Tax from 2.5 per cent to three per cent—authorised by the Commander-in-Chief, President Bola Ahmed Tinubu—represents a significant stride for TETFund.

This change reinforces the government’s dedication to strengthening Nigeria’s educational framework.

“We now enter the 2025 budget cycle with a stronger foundation that allows us to enhance our impact across the country’s tertiary institutions. At this juncture, the Fund wishes to extend its appreciation to the Federal Inland Revenue Service (FIRS), our reliable partner from inception to date, for its steadfastness and diligence in ensuring the timely and transparent collection of funding accrued from the Education Tax. This effort has propelled our tertiary institutions towards global recognition and excellence.

“The revenue generated from the Education Tax plays a significant role in maintaining and improving the infrastructure of our institutions, enhancing academic programmes, and promoting accessibility for students from diverse backgrounds.”

The Guardian reports that there are over 260 beneficiary institutions, including public universities, polytechnics, and colleges of education.

In his remarks, the Chairman of the Board of Trustees of TETFund, Aminu Bello Masari, called for removing politics from the education sector if any real development is to be achieved.

He urged tertiary institutions to begin devising ways to generate their own funds rather than relying solely on the government.

He said, “Let me start by commending ASUU for creating this intervention agency 21 years ago. The Fund has kept faith with the low establishment rate in our higher institutions, which is why we have some of the best institutions in the country.

“After 21 years, some institutions, with no apologies, and certain individuals outside, see the Fund not just as an intervention agency but as one that must shoulder its responsibilities in education, which I believe is appropriate.

“I think it is high time we started thinking, especially you [institutional heads], about how to fund education in a sustainable way. We see intervention efforts, but believe me, after two or three months, I, as chairman, receive requests from institutions, particularly those that know me or have connections to me.”

Relatedly, the Labour Party’s presidential candidate in the 2023 general election, Mr Peter Obi, has advised Nigerian students to pursue opportunities abroad if they find better prospects outside the country.

He shared this during a donation event at two higher institutions in Anambra State—Peter University in Achina/Onneh and the School of Nursing Sciences, Adazi-Nnukwu.

While addressing students at the College of Nursing Sciences in Adazi-Nnukwu, Obi reaffirmed his commitment to supporting educational institutions that promote skill development, professionalism, and character. “This is something I do every year. I’m here today to fulfil my promise and provide support,” he said.

Obi encouraged the students to seek opportunities abroad if they feel limited in Nigeria, stating, “If it’s not working for you here, go where it will. We will not advise anyone to stay where it’s difficult for them. Once Nigeria is fixed, those who have gone abroad will return.”

MEANWHILE, the Deputy Spokesman of the House of Representatives, Mr Philip Agbese, has pledged support for President Bola Tinubu’s tax reform bills, emphasising their potential to boost the economy and streamline tax administration.

Tinubu submitted four tax reform bills to the National Assembly on September 3, 2024, based on recommendations from the Presidential Committee on Fiscal and Tax Reforms led by Taiwo Oyedele. The bills, which aim to improve tax efficiency, have faced opposition from state governors who requested their withdrawal for further consultations—a request the President declined.

Speaking to journalists in Abuja yesterday, Agbese expressed confidence that the bills, if passed, would significantly enhance the economy.

“I am a strong advocate of these reforms because they will benefit the country. I’ve reviewed the documents and am convinced they will improve the economy,” he said.

Agbese, who is lobbying his colleagues, stressed that the reforms would benefit not only his home state, Benue but all diligent taxpayers. He noted that the proposals would enhance transparency, making citizens more aware of how their taxes are used.

He urged state governors to reconsider, highlighting that complaints about over-taxation are widespread and many businesses evade taxes, causing revenue losses.

“These reforms will address multiple taxation and close loopholes that companies exploit,” Agbese said, calling on governors to support the bills for the nation’s collective benefit.

Similarly, another member of the House of Representatives, Dr Abdulmumin Jibrin, expressed support for the proposed tax reform bill, arguing that it is in the country’s best interest.

Jibrin, who represents the Kiru/Bebeji Federal Constituency in Kano State under the New Nigeria Peoples Party (NNPP), made this call during a Channel Television programme on Sunday.

Jibrin, a former chairman of the House Committee on Finance, urged stakeholders, particularly those in the North, to reconsider their stance on the bill and approach it with patience and an open mind.

According to him, the bill includes safeguards to protect the interests of Northern states and should not be viewed through a political lens.

“There’s a crisis of perception here,” Jibrin said. “People hear ‘tax reform’ and immediately assume it will negatively impact them without actually reviewing the bill’s details. Many critics haven’t even looked closely at the bill. I urge lawmakers, the media, and the public to engage with the bill’s content before making judgments.”

He stressed that the reform is not about imposing new taxes on the common man but addressing systemic issues to benefit the broader society.

“President Tinubu is perceived as tax-focused, which leads to premature conclusions. However, if you examine the bill, it proposes reforms that will enhance societal well-being,” Jibrin added.

The lawmaker highlighted protective measures in the bill to ensure Northern states are not adversely affected. He noted that the reforms are aimed at long-term growth and urged a unified approach to creating a fair tax system.

“The North has untapped potential. This reform is an opportunity to strengthen our economic autonomy while ensuring a fair tax policy for all Nigerians,” he concluded.