The Academic Staff Union of Universities (ASUU) has strongly criticized the federal government’s proposal to phase out the Tertiary Education Trust Fund (TETFund) by 2030, warning that such a move would severely impact public universities and the overall education system in Nigeria.
The union argues that dismantling TETFund would not only undo the progress made in strengthening the fund but would also make higher education increasingly inaccessible to the poor.
ASUU’s National President, Prof. Emmanuel Osodeke, made the remarks in response to provisions within the Nigeria Tax Reform Bill 2024, currently under consideration by the National Assembly. The bill includes several key components, including the Nigeria Tax Bill 2024 (NTB), the Nigeria Tax Administration Bill 2024 (NTAB), and the Nigeria Revenue Service Establishment Bill 2024, aimed at consolidating various tax frameworks.
A primary concern lies in Section 59 (3) of the NTB 2024, which addresses how the Development Levy, an education tax that currently supports TETFund, will be allocated starting in 2025. According to the bill, TETFund will receive 50% of the levy in 2025 and 2026, while NITDA, NASENI, and NELFUND will receive the remaining shares. By 2030, however, the bill proposes that NELFUND will receive the entire levy, leaving TETFund, NASENI, and NITDA without any funding.
Osodeke expressed concern that the reallocation of the levy would effectively lead to the end of TETFund. “With all the Development Levy directed towards the Student Loan Scheme or NELFUND, universities will be forced to raise tuition fees, making education unaffordable,” he warned. “Eliminating TETFund will destroy tertiary education in Nigeria and undo the efforts that went into establishing the Education Tax Fund, which later became TETFund.”
He also highlighted that TETFund has been essential in supporting public universities, noting that many institutions would have struggled to survive without the fund’s support. “Every new or decent facility on campus has been funded by TETFund,” Osodeke pointed out.
The ASUU president called on the federal government to reconsider the proposal, stressing that its implementation would ultimately undermine public tertiary education in the country.
