The Academic Staff Union of Universities (ASUU) has raised alarms over the Nigeria Tax Reform Bill 2024, warning that its implementation could lead to the collapse of public tertiary education in Nigeria. The union has threatened to embark on a nationwide strike if the bill, currently being deliberated by the National Assembly, is passed.
Key Provisions of the Tax Reform Bill:
At the heart of the controversy is Section 59 (3) of the proposed bill, which introduces a phased reallocation of the Development Levy a primary funding source for tertiary institutions through the Tertiary Education Trust Fund (TETFund).
– 2025-2026: TETFund will receive 50% of the Development Levy, with the remainder shared among NITDA, NASENI, and NELFUND.
– By 2030: NELFUND will take 100% of the levy, leaving TETFund, NASENI, and NITDA unfunded
ASUU leaders argue that this reallocation will dismantle the only sustainable funding mechanism for Nigeria’s public universities, polytechnics, and colleges of education.
ASUU’s Position: “A Death Sentence for Tertiary Education
ASUU National President, Prof. Emmanuel Osodeke, criticized the bill, describing it as a threat to the survival of Nigeria’s tertiary education system. “If the tax reform bill is implemented, public tertiary institutions will collapse. The government is planning to scrap TETFund by 2030, which is the only source of funding for these schools. We will not allow this to happen and are prepared to fight this reform through strikes. ASUU has worked tirelessly to build TETFund, and we cannot let it be destroyed.”
Osodeke further warned that public tertiary education in Nigeria would face the same fate as public primary and secondary schools, which have suffered years of neglect.
SSANU: “TETFund Is Critical for Survival”
Joining the opposition, the Senior Staff Association of Nigerian Universities (SSANU) also rejected the tax reform bill. SSANU National President, Mr. Mohammed Ibrahim, emphasized the indispensable role of TETFund in sustaining public universities. “Without TETFund, many institutions would not survive. Basic facilities, infrastructure, and even operational costs rely heavily on this fund. The government must consult stakeholders and review this bill. Phasing out TETFund will deepen the existing crises in the education sector.”
Persistent Challenges in Tertiary Education
Beyond the proposed bill, Ibrahim noted that university staff continue to grapple with delayed salaries and poor working conditions. He revealed that federal university workers had not received their November pay due to challenges with transitioning payroll systems from IPPIS to GIFMIS. “Our members are languishing in hunger. The Federal Government must urgently resolve the payroll transition issues and ensure timely salary payments.”
Broader Implications of the Bill:
The proposed tax reform has sparked fears of worsening conditions in Nigeria’s already struggling education system. Critics argue that:
– Eliminating TETFund will severely reduce funding for infrastructure and research.
– Public universities will struggle to sustain operations, leading to potential increases in tuition fees.
– The quality of education will decline, further limiting access for students from low-income families.
A Call for Broader Consultation:
Both ASUU and SSANU have urged the government to consult widely with education stakeholders and reconsider the bill’s implications. They argue that without sufficient funding, public tertiary institutions will face insurmountable challenges, undermining the country’s long-term development.
The Nigeria Tax Reform Bill 2024 has ignited a heated debate about the future of tertiary education funding in Nigeria. With ASUU and SSANU threatening industrial action, the government faces mounting pressure to address these concerns and ensure that public universities remain accessible and sustainable.
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