The Nigerian government is making changes to its tax reform bills to ensure the Tertiary Education Trust Fund (TETFund) continues operating beyond 2030.
This was revealed by Minister of Education Tunji Alausa during a press briefing in Abuja on Thursday.
In October 2024, President Bola Tinubu sent four tax reform bills to the National Assembly for approval. These include the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill. One section of the Tax Administration Bill proposed scrapping the education tax and introducing a new “development levy.”
This change would have cut off TETFund’s funding, which has played a major role in improving infrastructure in public tertiary institutions.
According to the bill, the new development levy would start at 4% for 2025 and 2026, then drop to 3% for the following three years.
During this period, TETFund would receive a share of the funds—50% in 2025 and 2026, increasing to 66% from 2027 to 2029.
However, by 2030, the agency would no longer receive any money, as the levy would be reduced to 2% and used solely for the federal student loan scheme.
Many stakeholders criticized this plan, arguing it would weaken public education funding.
In response, the education ministry has been working with lawmakers to ensure TETFund’s revenue is protected.
Alausa confirmed that adjustments are being made to prevent the agency from losing its funding.
He assured that the final version of the tax law would secure the financial future of TETFund, as well as other affected agencies like NASENI and NITDA.