ASUU has aired its view on the proposed tax reform bills by President Bola Tinubu and forwarded to the national assemblyEmmanuel Osodeke, ASUU national president, maintained that the bills would scrap the TETFund, which is the primary source of funds for infrastructure in Nigerian universitiesPresident Bola Tinubu presented the controversial bills to the National Assembly earlier in October but has generated more criticism
The Academic Staff Union of Universities (ASUU) has expressed strong opposition to the proposed tax reforms bill by President Bola Tinubu, specifically the plan to scrap the education tax. ASUU president Emmanuel Osodeke said this move would ruin public tertiary institutions, which rely heavily on the Tertiary Education Trust Fund (TETFund) for funding.
Osodeke emphasized that TETFund is the primary revenue source for public universities, and scrapping it would have devastating consequences. The controversy surrounding the tax reforms began when President Tinubu sent four tax reform bills to the National Assembly for consideration.
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ASUU rejects tax reform bills at the National Assembly
Photo Credit: @officialABAT
Source: Twitter
Objective of Tinubu’s tax reform bills
The bills aim to overhaul Nigeria’s tax system, prevent leakages, and ensure true fiscal federalism. However, the proposed reforms have been met with resistance from various stakeholders, including the education sector. Osodeke argued that education stakeholders were not consulted before the bills were sent to the National Assembly and that the reforms would ultimately harm public universities.
The federal government has attempted to clarify the proposed reforms, with Bayo Onanuga, the president’s special adviser on information and strategy, stating that no part of the proposed tax bills recommends scrapping TETFund in 2029. Taiwo Oyedele, chair of the presidential committee on tax reforms, also explained that the changes aim to unify Nigeria’s multiple tax systems. However, Osodeke remains sceptical, accusing the government of “playing with words” to phase out TETFund.
Osodeke pointed out that TETFund has been instrumental in developing infrastructure in public universities, polytechnics, and colleges of education. He argued that companies in Nigeria should view the education tax as an investment in producing graduates who will contribute to the workforce. Osodeke also highlighted the unfair sharing formula proposed in the tax bills, which would reduce TETFund’s access to the consolidated fund from 50% in 2025-2026 to 33% in 2026-2027, and eventually to zero by 2030.
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Senate to make more consultation
Henzodaily.ng earlier reported that the Senate has announced the suspension of the tax reform bills proposed by President Bola Tinubu to the National Assembly.
Jibrin Barau, the deputy senate president, announced the development on Wednesday, December 4, adding that it was to provide more room for consultations.
According to Barau, the Senate has set up a committee to discuss the bill with the Ministry of Justice and the executive.
Source: Henzodaily.ng