The Academic Staff Union of Universities (ASUU) has vehemently condemned the Federal Government’s proposed removal of the education tax, a move they perceive as an existential threat to Nigerian universities. This proposal is contained within the Nigeria Tax Bill 2024, currently under consideration by the National Assembly. The bill seeks to drastically reshape the distribution of the education tax, officially termed the ‘development levy’, by progressively reducing the allocation received by the Tertiary Education Trust Fund (TETFund) and diverting these funds to other agencies. ASUU argues that this redirection of funds, particularly to agencies not explicitly recognized within the 2011 Act establishing TETFund, is illegal and will severely cripple the fund’s ability to support vital activities in public tertiary institutions, including infrastructural development, postgraduate training, and research.
The union’s concerns revolve around the proposed phased reduction of TETFund’s share of the development levy. The bill stipulates that, initially, only 50% of the levy would be allocated to TETFund, with the remaining portion distributed among agencies like the National Information Technology Development Agency (NITDA), the National Agency for Science and Engineering Infrastructure (NASENI), and the National Electricity Liability Management Company (NELFUND). This reduction is projected to culminate in a complete cessation of TETFund’s allocation by 2030, a prospect ASUU views as catastrophic for the future of higher education in Nigeria. They have labeled the move as not only detrimental but also illegal, vowing to resist any attempt to divert the funds meant for TETFund.
ASUU President, Professor Victor Osodeke, has emphasized the vital role TETFund has played over the past 25 years in bolstering Nigerian public tertiary institutions. He argues that the fund has been instrumental in financing critical infrastructure projects, supporting postgraduate training programs, and enhancing research capacity. Osodeke contends that any reduction in TETFund’s resources will significantly undermine the progress made in the education sector and jeopardize the future development of universities. The union has communicated its concerns and objections to the Presidency, the Senate President, and other key stakeholders, urging them to reconsider the proposed changes to the education tax regime.
Adding to their concerns about the proposed tax reforms, ASUU has also criticized the government’s continued insistence on retaining university academics within the Integrated Personnel and Payroll Information System (IPPIS). The union maintains its longstanding opposition to IPPIS, arguing that the system is incompatible with the unique operational requirements of the academic environment. They believe that IPPIS fails to adequately address the complexities of academic salaries, research grants, and other financial aspects specific to universities.
To address these pressing issues, ASUU has initiated dialogue with the Federal Government. Professor Osodeke has confirmed that a meeting is scheduled with the two Ministers of Education, Tunji Alausa and Suwaiba Ahmad, to discuss the proposed changes to the education tax and the ongoing IPPIS controversy. While the exact date of the meeting is yet to be finalized, ASUU anticipates a robust discussion on these critical matters and hopes to achieve a resolution that safeguards the future of tertiary education in Nigeria. The meeting will provide a platform for the union to reiterate its stance on the detrimental impact of the proposed tax reforms and to advocate for the removal of universities from the IPPIS system.
ASUU’s core argument centers on the indispensable role of TETFund in sustaining the quality and development of Nigerian universities. They highlight the tangible benefits accrued through TETFund’s consistent funding over the years, including improved infrastructure, enhanced research capabilities, and increased access to postgraduate education. The union believes that the proposed diversion of funds will not only stifle these advancements but also create a funding crisis that could cripple the already struggling university system. They emphasize the importance of maintaining a dedicated and robust funding mechanism for tertiary education, cautioning against jeopardizing the future of Nigerian universities through short-sighted policy decisions. ASUU’s resolute opposition to the proposed tax reforms reflects their unwavering commitment to protecting the interests of Nigerian universities and ensuring the continued development of the education sector.
