The ongoing deliberations over Nigeria’s comprehensive tax reform bills have ignited significant concerns from educational institutions and civil rights organizations, with particular attention focused on the proposed phasing out of the Tertiary Education Trust Fund (TETFund) by 2030 and potential human rights implications. The controversy has prompted the Senate to establish a high-level committee to address these critical issues with the Attorney General of the Federation.
The Academic Staff Union of Universities (ASUU) has raised alarm over the provisions in the Nigeria Tax Bill 2024 that would gradually eliminate TETFund’s funding, warning that such a move could devastate public tertiary education in the country. ASUU’s National President, Professor Emmanuel Osodeke, emphasized that TETFund has been instrumental in maintaining and developing facilities across public universities, pointing out that many institutions would face severe challenges without this crucial funding source.
The proposed legislation, which includes four distinct bills aimed at consolidating various taxation frameworks, introduces a significant restructuring of the Development Levy distribution. Under the new proposal, TETFund’s share of the levy would gradually decrease from 50 percent in 2025-2026 to nothing by 2030, with the Nigerian Education Loan Fund (NELFUND) eventually receiving the entire allocation.
This transition has sparked serious concerns about the future of higher education accessibility in Nigeria. Professor Osodeke warns that the elimination of TETFund would likely force public institutions to implement substantial tuition fee increases, potentially making higher education unaffordable for many Nigerian families. The union argues that this would effectively reverse decades of progress in making tertiary education accessible to all economic classes.
Meanwhile, the Socio-Economic Rights and Accountability Project (SERAP) has called upon Senate President Godswill Akpabio and House Speaker Tajudeen Abbas to conduct thorough human rights impact assessments of the proposed reforms. SERAP’s Deputy Director, Kolawole Oluwadare, stressed the importance of transparent evaluation processes that include public participation and shape the final legislation.
The organization has identified several concerning provisions within the bills, particularly regarding data protection and privacy rights. SERAP highlights that the Tax Administration bill grants extensive powers to tax authorities without adequate safeguards against potential misuse of personal information, including citizens’ home addresses and other sensitive data.
In response to these mounting concerns, the Senate has formed a ten-member committee, representing all six geopolitical zones of the country, to engage with the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi. The committee, chaired by Senate Minority Leader Abbah Moro, is scheduled to meet with the AGF to address contentious clauses within the tax bills.
The broader implications of these reforms extend beyond education and human rights concerns. The Youth Party has urged the ruling All Progressives Congress (APC) to address internal conflicts regarding the proposed Value Added Tax (VAT) Act, emphasizing the need for broader consultation before proceeding with the legislation. Additionally, the Yoruba World Assembly has warned that northern opposition to the tax reform bill could exacerbate regional tensions.
SERAP has further called for enhanced accountability measures within the tax reform bills to prevent mismanagement or misappropriation of tax revenues. The organization advocates for mechanisms requiring state governors to account for tax revenues, including VAT collections, since 2015, emphasizing the need for transparency in tax administration.
As these deliberations continue, the outcome will likely have far-reaching consequences for Nigeria’s educational system, human rights framework, and overall tax administration structure. The Senate committee’s upcoming meetings with the Attorney General may prove crucial in determining the final shape of these reforms and their impact on various sectors of Nigerian society.
The controversy surrounding these tax reforms highlights the delicate balance between generating government revenue, maintaining essential public services, and protecting citizens’ rights. As the legislative process moves forward, stakeholders from various sectors continue to advocate for careful consideration of the long-term implications of these significant changes to Nigeria’s tax system.
