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ASUU Rejects FG’s Plan To Remove Education Tax

Published

2 days ago

Jan 3, 2025.

ASUU opposes FG’s plan to cut education tax, citing threats.
Proposed tax reforms would reduce TETFund funding for tertiary institutions.
ASUU warns the move endangers university progress and infrastructure.

The Academic Staff Union of Universities (ASUU) has strongly opposed the Federal Government’s proposal to remove the education tax, describing it as a severe threat to the survival of Nigerian universities.

ASUU National President, Prof. Victor Osodeke, revealed that the union has written to key stakeholders, including the Presidency and Senate President, warning against implementing the Nigeria Tax Bill 2024, which would significantly alter the funding framework of the Tertiary Education Trust Fund (TETFund).

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EKO HOT BLOG reports that under the proposed bill, TETFund’s share of the education tax, known as the development levy, would be reduced to 50% by 2025 and completely eliminated by 2030.

These funds, which have been instrumental in supporting infrastructural development, postgraduate training, and research in public tertiary institutions, would be redirected to other agencies, including NITDA, NASENI, and NELFUND.

ASUU has labelled the proposal illegal, stating that it violates the Act establishing TETFund in 2011. The union has vowed to resist any attempt to divert resources from the fund, warning that such actions would jeopardize the progress made in the education sector over the last 25 years.

Prof. Osodeke emphasized the need for adequate funding of education, declaring, “Education cannot be allowed to remain in rot. We will meet with the two Ministers of Education to address these and other pressing issues.” Although a date for the meeting has not been set, Osodeke assured that updates would be provided.

ASUU Education Tax

The union also criticized the government for failing to exempt university academics from the Integrated Personnel and Payroll Information System (IPPIS), which ASUU argues is unsuitable for the academic environment.

ASUU has declared its intention to fight any policies that threaten the survival of Nigerian universities, insisting on preserving TETFund’s critical role in advancing the nation’s education sector.

For over two decades, TETFund has been a pillar of support for tertiary institutions in Nigeria, and ASUU insists that any reduction in its resources will undermine the sector’s progress and further erode the quality of education.