A significant aspect of the bill is found in Section 59 (3), which outlines the future allocation of the Development Levy, an education tax that presently supports TETFund, starting in 2025. The proposed legislation stipulates that TETFund will receive 50 percent of the Development Levy for the years 2025 and 2026, while the remaining funds will be distributed among NITDA, NASENI, and NELFUND. However, by 2030, NELFUND is projected to receive the entirety of the levy, leaving TETFund, NASENI, and NITDA without any allocation.
In an interview, ASUU's National President, Prof. Emmanuel Osodeke, expressed that the implementation of this bill, which aims to phase out TETFund by 2030, would render Nigerian public universities, polytechnics, and colleges of education nonviable. He emphasized that TETFund is the sole funding source for these tertiary educational institutions.
Osodeke stated that the implementation of the tax reform bill would lead to the collapse of all public universities, polytechnics, and colleges of education in Nigeria. He pointed out that the bill proposes to eliminate TETFund by 2030, which serves as the sole funding source for these institutions. He expressed concern that the efforts of ASUU over the years regarding TETFund would be rendered futile, and emphasized their readiness to oppose the reform through strikes, asserting that they will not permit the destruction of universities as has happened with public primary and secondary schools.
Additionally, Mr. Mohammed Ibrahim, the recently re-elected National President of the Senior Staff Association of Nigerian Universities (SSANU), echoed the organization's opposition to the tax reform bill. He highlighted that without TETFund, many institutions would face collapse due to inadequate basic facilities.
Rahim stated that the proposed tax reform bill lacks sufficient support due to inadequate consultation with relevant experts. He emphasized the bill's detrimental impact on universities, given their heavy reliance on TETFund for operational expenses, including electricity costs. He concluded that the government must address these critical funding issues to ensure the viability of public tertiary education.
He further noted that ongoing issues such as strikes, deteriorating infrastructure, insecurity, insufficient funding, and rising student fees continue to plague the sector. With diminished funding, universities will face significant difficulties in maintaining operations. He also mentioned that his members are suffering from hunger due to the Federal Government's failure to disburse November salaries.
He further reported that his constituents are experiencing food insecurity due to the Federal Government's failure to disburse November salaries. The delay in November salary payments is attributed to the transition from IPPIS to GIFMIS. While the Federal Government mandated the GIFMIS transition, concurrently with November salary disbursement, Federal universities were instructed to independently manage payroll and secure government payments. This situation is causing significant employee hardship, and the Office of the Accountant General bears sole responsibility.