Proposed tax bill will harm public varsities, Bauchi ASUU warns

The Academic Staff Union of Universities has renewed its opposition to the proposed Nigeria Tax Bill 2024, warning that its implementation would have catastrophic consequences for public universities across the country.

Speaking at a press conference in Jos on Thursday, the Bauchi State zone of ASUU, which comprises six universities, raised alarms over the bill’s provisions.

The Zonal Coordinator, Professor Namo Timothy, criticised the bill for its plans to replace the Development Levy—an essential funding source for Tertiary Education Trust Fund projects—with the Nigeria Education Loan Fund.

Timothy stated, “The bill seeks to enact a new law and abrogate the Education Tax. If passed into law, it will replace the Development Levy, a major source of funding for TETFund projects, so that all funds generated from the Education Tax will be ceded to the newly established Nigeria Education Loan Fund. This is dangerous and unpatriotic.”

He further outlined the bill’s phased allocation changes, which would drastically reduce TETFund’s share of Development Levy proceeds. According to him, Section 59(3) of the bill stipulates that:

In 2025 and 2026, TETFund will receive only 50% of Development Levy collections, with the remainder divided among the National Information Technology Development Agency (NITDA), the National Agency for Science and Engineering Infrastructure (NASENI), and NELFUND.

From 2027 to 2029, TETFund’s share will increase slightly to 66.7%.

By 2030, TETFund will receive no allocation, with all funds diverted to NELFUND.

“The far-reaching implication of this toxic bill is that by 2030, all the funds generated from the Development Levy will be accessed solely by NELFUND,” Timothy warned.

“This portends danger for the survival of TETFund and, consequently, the Nigerian tertiary education system. TETFund has been the backbone of infrastructural development, postgraduate training, research, and capacity-building in public tertiary institutions since 1993. Why would the federal government want to dismantle such a vital institution?”

The Bauchi zone of ASUU includes Abubakar Tafawa Balewa University, Bauchi; Federal University, Kashere; Gombe State University, Gombe; Plateau State University, Bokkos; University of Jos, Jos; and Sa’adu Zungur University, Bauchi.

The union called on the National Assembly to halt further debates on the bill and safeguard the TETFund Act 2011.

Timothy also urged Nigerians to resist what he described as “anti-people policies” of the Tinubu-led administration.

“This is a call to action for every Nigerian,” he said. “We cannot allow policies that jeopardise the future of our education system and our youths to prevail.”

The proposed Nigeria Tax Bill 2024 remains a contentious issue as public debate intensifies over its potential impact on the country’s education sector.

PUNCH Online reports that the proposed Nigeria Tax Bill 2024 has met strong criticism, particularly from stakeholders, political leaders, and academic unions in the northern region of the country.