President Bola Tinubu is advocating for new tax bills that could significantly alter the funding landscape for tertiary education.
The proposed legislation, currently under review by the National Assembly, aims to phase out special tax privileges granted to key funds such as the National Information Technology Development Fund (NITDF), the National Agency for Science and Engineering Infrastructure (NASENI) Fund, and the Tertiary Education Trust Fund (TETFUND).
The tax reform bills propose consolidating all development levies into a single levy of 4% on profits of eligible entities in 2025 and 2026, which will then be reduced to 2% from 2027 to 2029.
By 2030, these levies are set to cease entirely. This consolidation is intended to streamline the funding process and redirect resources towards the Student Loan Fund, which is poised to become the primary beneficiary.
Under the new proposal, the Student Loan Fund will receive 25% of the developmental levy in 2025 and 2026, increasing to 33% between 2027 and 2029, and eventually receiving 100% by 2030. In contrast, TETFUND, which plays a crucial role in providing infrastructure and training in public tertiary institutions, will see its share reduced to 0% by 2030.
Similarly, NITDF and NASENI will be excluded from the development levy by 2027.
This shift has sparked significant opposition, particularly from northern regions of Nigeria, due to concerns over its potential impact on the financing of tertiary education. Governor Babagana Zulum of Borno State expressed his apprehensions, stating, "The bills seek to scrap the three agencies." However, Taiwo Oyedele, Chairman
of the Presidential Committee on Fiscal Reforms, reassured stakeholders, saying, "The proposal will not scrap the agencies. Instead, the government will directly approve funding for them."
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