FG’s Tax Reform Could Spell End For TETFund, COEASU Warns

The Colleges of Education Academic Staff Union (COEASU) has expressed deep concerns over the federal government’s proposed tax reform bill.

The union warned that the bill could jeopardise the survival of the Tertiary Education Trust Fund (TETFund) and, by extension, the nation’s tertiary education system.

In a statement issued yesterday, COEASU President Dr Smart Olugbeko criticised aspects of the proposed tax administration reforms, which he said threatened to cut off TETFund’s critical funding sources.

Olugbeko described the move as a “dangerous ambush” that could severely undermine the development of public tertiary institutions in Nigeria.

“Our Union, the Colleges of Education Academic Staff Union (COEASU), has noted with serious concern the inimical effect of the proposed tax reforms of the Federal Government on Tertiary Education in Nigeria,” the statement read.

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“The tax reform is nothing but a dangerous ambush aimed at destroying public tertiary institutions in Nigeria. We firmly reject the aspects of the proposed tax administration that aim to withdraw or impede the source of funds to the Tertiary Education Trust Fund (TETFund).

“Such injury, if allowed to stand, is bound to undermine the development of public tertiary education in Nigeria,” it added.

Emphasising the pivotal role of TETFund, Olugbeko noted that the fund was a product of decades-long advocacy by academic unions, particularly the Academic Staff Union of Universities (ASUU), adding that before its establishment, Nigeria’s tertiary institutions were grappling with decayed infrastructure and inadequate funding.

“It is shocking to note that no Nigerian government in the last two decades or more has committed up to 9% of the annual budget to education despite UNESCO’s recommendation of 26%,” the statement said.

COEASU warned that withdrawing TETFund’s funding source could push public tertiary institutions into the stock market, transforming them into profit-driven ventures accessible only to the wealthy.

“Except for TETFund, which has become the spine and lifeblood of public tertiary education funding, Nigerian universities, polytechnics, and colleges of education would have gone comatose. TETFund has been playing an indispensable role in developing tertiary institutions in Nigeria, providing funding for infrastructure, research, teaching, and staff development,” Dr. Olugbeko stated.

The union also commended TETFund for its efficiency and transparency, describing it as one of Nigeria’s best-managed government agencies.

COEASU accused the political elite of attempting to dismantle public tertiary institutions in favour of private, profit-driven alternatives, as was done with public secondary schools.

“Rather than killing TETFund through the purported tax reform, the Federal Government should strengthen and expand its revenue accrual sources to sustain the Fund’s commendable efforts in our institutions,” Olugbeko urged.