The Academic Staff Union of Universities (ASUU) has expressed deep concern that less than half of Nigerian students will benefit from the proposed student loan scheme outlined in the Nigeria Tax Bill (NTB) 2024.
The union further warned that the bill’s provisions, including the planned phasing out of the Tertiary Education Trust Fund (TETFund), could severely undermine public university funding and infrastructure development.
Speaking on Thursday in Makurdi, Raphael Amokaha, Zonal Coordinator for ASUU-Nsukka Zone, described the bill as a threat to the educational sector. He highlighted the union’s dismay at plans to redirect funding away from TETFund toward the National Education Loan Fund (NELFUND).
“Without prejudice to other sections of this bill, ASUU-Nsukka Zone and indeed ASUU National are horrified by its contents with regard to the Education Tax (development levy) and its implications for TETFund,” Amokaha stated.
A key issue in the bill is the government’s proposal to terminate the Education Tax, the primary source of TETFund’s funding, by 2030. Section 59(3) of the NTB 2024 proposes reducing TETFund’s share of the tax progressively—50% in 2025 and 2026, 66.7% in 2027 through 2029, and 0% from 2030 onward. Instead, the funds will be redirected entirely to NELFUND, which will primarily manage student loans.
Amokaha warned that this reallocation would suffocate TETFund, an agency instrumental in supporting university infrastructure and capacity development. “This simply means that by 2030, all proceeds from the Education Tax will be channeled into NELFUND, an agency that has not firmly taken root yet, while TETFund will be strangulated to death,” he said.
The ASUU leader argued that reallocating funds from TETFund to other agencies is illegal under the TETFund Act 2011. “Taking any percentage out of the Education Tax to service another agency not recognized by the TETFund Act is not only illegal but also a reckless decision that endangers the future of education in Nigeria,” Amokaha stressed.
Since its creation, TETFund has played a pivotal role in transforming public tertiary institutions across Nigeria. Amokaha emphasized that the agency supports 244 institutions, including 96 universities, 72 polytechnics, and 76 colleges of education.
He noted that TETFund’s contributions are evident on campuses nationwide. “At least 80% of the buildings on these campuses carry the TETFund logo, indicating that they were constructed or renovated by TETFund. The agency has also provided street lighting, school clinics, and laboratory equipment, making it a lifeline for these institutions,” he said.
Amokaha added that TETFund’s interventions benefit all students, whereas the proposed student loan scheme would only serve a limited number. “The student loan scheme is designed in such a way that less than half of Nigerian students will benefit from it, while any infrastructure funded by TETFund serves all students,” he stated.
ASUU criticized the NTB 2024 as “illogical, myopic, and anti-people,” warning that the bill would disproportionately harm middle-class and lower-income families. The union called on federal and state governments to fulfill their constitutional duty to adequately fund tertiary education.
“ASUU has resolved not to stand by and watch the denigration and obliteration of TETFund, an agency that has discharged its mandate decently over the past three decades,” Amokaha declared. He urged the National Assembly to protect TETFund from being dismantled and to ensure accessible and affordable education for all Nigerian students.
ASUU vowed to resist any attempts to dismantle TETFund, describing the agency as a vital pillar for public university development.
