Stakeholders in Nigeria’s education sector have raised concerns over the provisions of the Nigeria Tax Bill 2024, which could significantly alter funding structures for tertiary education. The bill proposes a gradual reallocation of funds from the Tertiary Education Trust Fund (TETFund) to the Student Education Loan Fund (SELF), a move critics say could weaken infrastructure and research capabilities in higher institutions.
While the tax reforms aim to increase Nigeria’s tax-to-GDP ratio from its current 6.6–10 percent to a targeted 18 percent by 2026, education experts argue that the shift in funding priorities could be detrimental. Under the new bill, revenue accruing to TETFund will be phased out entirely by 2030, with 100 percent of the development levy directed to SELF.
TETFund has played a crucial role in financing infrastructure, research, scholarships, and academic publishing in Nigerian tertiary institutions for over three decades. The bill proposes that from 2025 to 2026, TETFund will receive 50 percent of the development levy, reducing to 66 percent from 2027 to 2029, before being entirely eliminated in 2030. Consequently, from 2030 onward, SELF will receive all the funds, catering exclusively to student loans while leaving institutional funding unaddressed.
Education stakeholders, including the Academic Staff Union of Universities (ASUU), student unions, and civil society organizations, have voiced strong opposition to the proposed changes. ASUU President, Emmanuel Osodeke, emphasized that over 90 percent of the physical structures in universities, polytechnics, and colleges of education have been financed through TETFund, warning that its removal could devastate public institutions and limit access to quality education for students from low-income families.
The Federal Government has defended the bill, stating that no provision explicitly calls for the scrapping of TETFund. Special Adviser to the President on Media and Strategic Communications, Bayo Onanuga, clarified that the reforms are designed to enhance tax operations, not eliminate educational funding. However, stakeholders argue that stripping TETFund of financial resources equates to an indirect termination.
The Nigeria Labour Congress (NLC), National Association of Nigerian Students (NANS), and university staff unions have urged the National Assembly and state governors to intervene, warning that diverting all funds to SELF could lead to deteriorating infrastructure, inadequate research funding, and an overall decline in education quality.
The move has drawn comparisons with Ghana, which modeled its Ghana Education Trust Fund (GETFund) after Nigeria’s TETFund to bolster education financing. Critics argue that scrapping TETFund would be counterproductive, especially as Nigeria faces a growing education crisis, with 20.1 million out-of-school children—the second highest globally after India.
Additionally, analysts question how SELF alone will address the broader needs of tertiary institutions, especially given that Nigeria’s federal budget for education remains low. The Tinubu administration allocated 6.39 percent of the national budget to education in 2024 and 7.0 percent for 2025, well below the United Nations’ recommended 15–20 percent.
Education experts and policymakers are calling on the government to reconsider the reallocation of funds and maintain TETFund as a critical mechanism for sustaining higher education. While student loans can aid financially disadvantaged students, critics stress that they cannot replace the comprehensive support TETFund provides to institutions.
The debate over the Nigeria Tax Bill 2024 underscores broader concerns about the government’s approach to education financing. With mounting opposition from key stakeholders, the fate of TETFund remains a crucial issue in Nigeria’s education sector, requiring urgent policy reassessment to ensure sustainable funding for higher institutions.
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