ASUU, SSANU, and Other Unions Oppose Proposed Phasing Out of TETFund by 2030

The Abuja zone of the Academic Staff Union of Universities (ASUU), Senior Staff Association of Nigerian Universities (SSANU), students, and other unions have raised serious concerns over the Tax Reform Bills 2024 currently under review by the National Assembly. The unions warn that the proposed changes could severely undermine Nigeria’s already struggling tertiary education system, particularly through the planned reduction and eventual elimination of the Tertiary Education Trust Fund (TETFund) by 2030.

In a press briefing held in Abuja on Thursday, ASUU’s zonal coordinator, Salahu Mohammed Lawal, voiced strong opposition to the provisions of the proposed Tax Bills, particularly those affecting TETFund, which has played a crucial role in financing public universities and other higher education institutions across the country. The Tax Bills, if passed in their current form, would drastically reduce the allocation of funds to TETFund, starting in 2025, and eventually phase it out completely by 2030. Under the proposal, only 50% of the Education Tax would be allocated to TETFund, with the remainder diverted to other initiatives, such as the Nigerian Education Loan Fund (NELFUND).

Lawal emphasized that the phased reduction of TETFund’s allocation would destabilize the funding system for public tertiary institutions, which are already underfunded and heavily reliant on TETFund for infrastructure development and human capital growth. He said:

“The planned shift in funding towards student loans may force public tertiary education institutions into charging high tuition fees, potentially converting them into revenue-generating bodies. Phasing out TETFund would jeopardize the development of infrastructure in these institutions and exacerbate financial difficulties for students, leaving them burdened with long-term debt.”

He also pointed out that the shift of funds to NELFUND, an untested initiative, would undermine the proven effectiveness of TETFund, which has been instrumental in the development of Nigeria’s tertiary education system for over a decade. Lawal stressed that this proposal violates the TETFund Act of 2011, which mandates that education tax proceeds be allocated to the fund for the benefit of public higher education.

ASUU further argued that the move would significantly reduce the quality of education and reverse years of progress made through TETFund’s interventions. Lawal continued, “If this reform passes, public tertiary institutions will be left without a vital financial lifeline, which could set back the sector for generations.”

In solidarity with ASUU, SSANU’s chairman, Nurudeen Yusuf, also expressed strong opposition to the planned phasing out of TETFund, praising its positive impact on the country’s tertiary education system. Yusuf stated that the Fund should not be dismantled, as its continued support is essential for maintaining the quality of education.

Sadiya I. Hassan, the chairperson of the Non-Academic Staff Union (NASU), argued that imposing student loans, especially in a context of high unemployment, would be disastrous. “It is illogical to burden students with loans when there are no jobs to absorb them after graduation,” she remarked, calling for a reconsideration of the proposed reforms to allow TETFund to continue its vital work.

Comrade Bashir Abdullahi Muhammed, the president of the Students Union Government (SUG) at the University of Abuja, also weighed in on the issue. He warned that if TETFund interventions ceased, it would lead to a serious crisis in the country’s tertiary education system. He said, “Removing the support provided by TETFund is not justifiable and will have detrimental effects on the education sector.”

ASUU and its allies have called for widespread public and stakeholder engagement to prevent the scrapping of TETFund and to protect the future of Nigerian tertiary education. They are urging lawmakers to reject any provisions in the Tax Bills that threaten the sustainability of TETFund, warning that its demise would constitute a catastrophic blow to the nation’s education system.

“The survival of TETFund is of national importance,” Lawal concluded, “and any attempt to eliminate or diminish its role would be a monumental disservice to the education sector and the nation as a whole.”