The Academic Staff Union of Universities, ASUU has stated that if the proposed tax reform bill currently in the Nation Assembly, which included plans to phase out TETFund by 2030, was implemented, Nigerian public universities, polytechnics, and colleges of education would collapse and become defunct.
The National President, ASUU, Prof. Emmanuel Osodeke, expressed this concern during an interview with newsmen.
He stated that if the proposed bill, which included plans to phase out TETFund by 2030, was implemented, Nigerian public universities, polytechnics, and colleges of education would become defunct.
The ASUU President revealed that TETFund was the only source of funding for tertiary educational institutions.
According to him, “If the tax reform bill is implemented, all Nigerian public universities, polytechnics, and colleges of education will collapse because the bill intends to scrap TETFund by 2030, which is the only source of funding for tertiary institutions. This also means that all of ASUU’s efforts over the years on TETFund will be in vain and we will not allow that to happen, we are ready to fight the reform with strikes, we are ready for the government on this. This is why we are saying we cannot allow our universities to be destroyed the way public primary and
The bill includes a key issue in Section 59 (3) of the Nigeria Tax Bill 2024, which details how the Development Levy, an education tax that currently funds TETFund, will be distributed starting in 2025.
According to the proposed bill, TETFund will receive 50 per cent of the Development Levy in 2025 and 2026, with NITDA, NASENI, and NELFUND receiving the remaining percentages. However, by 2030, NELFUND is set to receive 100 per cent of the levy, while TETFund, NASENI, and NITDA will receive nothing.
The Academic Staff Union of Universities said it will embark on a strike action if the tax reform bill is implemented for tertiary education institutions.
