The Academic Staff Union of Universities (ASUU) has urged the Federal Government to reconsider plans to phase out the Tertiary Education Trust Fund (TETFund), a vital funding source that has transformed Nigerian public universities over the past three decades. The association, ASUU warned that replacing TETFund with the newly introduced Nigerian Education Loan Fund (NELFUND) would severely harm public education.
“You can’t destroy TETFund and expect public education to survive,”
-ASUU President Emmanuel Osodeke
ASUU President Emmanuel Osodeke criticized the lack of consultation with stakeholders, university leaders and educational bodies. As regards the proposed tax reforms that would redirect funds from TETFund.
He argued that dismantling TETFund would destroy the foundations of public universities, which rely heavily on its resources.
Osodeke proposed an alternative solution: funding NELFUND through Value Added Tax (VAT) instead of dismantling TETFund.
He highlighted that TETFund, established in 1993, has been instrumental in providing infrastructure to Nigerian universities, polytechnics, and colleges.
According to him, 90% of physical structures in these institutions are products of TETFund’s support.
The proposed tax bills, which would reduce TETFund’s funding from 50% to 0% by 2030, have faced widespread opposition.
Governors, academics, and stakeholders argue that this move would cripple the education sector. Comparisons were drawn to Ghana’s successful GETFund model, which is also funded through VAT.
Osodeke emphasized that loans, such as those offered by NELFUND, cannot replace grants provided by TETFund.
He expressed concern that rising tuition fees, coupled with student loans, would push many poor students out of education.
“Students are dropping out because they can’t afford higher fees,”
He also reminded the government of the sacrifices made by ASUU members in the struggle to establish TETFund, urging them not to dismantle what has been a cornerstone of Nigeria’s educational progress.
“This isn’t just about ASUU—it’s about the future of Nigerian education,”
Osodeke concluded, calling for a minimum 15% budget allocation to education in line with West African standards.
However, Chair of the Presidential Committee on Tax Reforms, Taiwo Oyedele, had said the government has no intention to scrap TETFund but to unify the multiple tax system in the country.
