The Coalition of Northern Groups Students’ Wing has strongly opposed the proposed Tax Reform Bills, arguing that they are designed to undermine the already struggling educational sector in the northern region.
The group warns that the reforms could lead to the collapse of key educational institutions, which they say Nigerian students will strongly resist.
A statement issued by Hassan Adamu, National Coordinator of CNG Students-wing, said the Tax Reform Bills were crafted “to undermine our existing educational institutions and equally ensure that anything good in the sector becomes a history, which Nigerian students will vehemently resist no matter what.”
According to Adamu,”The reform will have a deteriorating effect on critical institutions that support the educational development in the country.”
The CNG Students’ Wing believes that the proposed Tax Reform Bills would negatively impact critical national institutions that support educational development in the country. The group sees the reforms as an attempt to dismantle institutions responsible for maintaining the infrastructure and quality of tertiary education, potentially rendering them ineffective, according to Independent.
The statement also emphasized the importance of the Tertiary Education Trust Fund, which has played a vital role in financing research, infrastructure, and staff development in Nigeria’s higher education system. Under the proposed reforms, TETFUND’s funding, which currently comes from a 3% tax on the annual profits of companies, would be drastically reduced. By 2025, the fund’s share of the tax levy would be halved, with further reductions in the following years, potentially leading to its elimination by 2033. The group argued that this would have a devastating effect on the country’s tertiary education system.
The proposed reforms also raise concerns about the Nigerian Education Loan Fund, with funding for the program set to increase significantly under the new tax plan. By 2025, NELFUND would receive 25% of the tax levy, and by 2030, it could receive 100%. While the goal is to increase access to student loans, the group warned that this could lead to a situation where students are burdened with debt, turning education into a commodity rather than a public good.
The CNG Students’ Wing also expressed fears that the reforms could force public universities to raise tuition fees, making education less accessible to the majority of Nigerian students. This, they say, would pave the way for the privatization of universities, further excluding the masses and creating a generation of financially constrained youth unable to contribute effectively to the nation’s economy.
The group has called on the federal government to halt the reform process and engage in broader consultations before moving forward with the proposed bills. They urged legislators and concerned citizens to carefully review the proposals to ensure the protection of Nigeria’s educational institutions and the interests of students.
“We see the Tax Reform Bills as a deliberate attempt to attack our critical National Institutions that are responsible for basic infrastructure in tertiary institutions, thereby ensuring that the institutions become mortuaries.
“The contributions of Tertiary Education Trust Fund (TETFUND) since its inception cannot and will not be over-emphasised, having played a pivotal role in financing research, physical infrastructure, staff training and development.
“Tertiary Education Trust Fund (TETFUND) which is currently funded through 3% of Tertiary Education tax on companies annual accessible profit; will now receive 50% of the levy by 2025 and 2026 it will increase to 66% from 2027 to 2029 be for diminishing to 3%, according to the proposed Tax Reform Bills.
“TETFUND will not have any allocation by 2033, which by implication, will lead TETFUND to extinction, a situation which is tantamount to degrading the Tertiary Education system in Nigeria.
the Nigerian Education Loan Fund (NELFUND),” Adamu stressed.
He continued, ““NELFUND is currently funded by 1% deduction collected from Taxes, levies, and duties collected by the Federal Inland Revenue Service (FIRS), it will now receive 25% of the levy in 2025 and 2026, 33% from 2027 to 2029 and 100% by 2030, according to the proposed Tax Reform Bills.
“The implication of this is that, the proposed bills, if passed into law, will divert funds to critical sectors such as infrastructure, innovation initiatives with long-time development impact.
“It shifts attention to Students loan, this could also give reason for the public Tertiary institutions to increase their tuition fees.
“It would also make our public tertiary institutions to be revenue generating entities, paving way for privatisation of our tertiary institutions, thereby making it inaccessible to the masses.
“This will also saddle our youth with unsustainable debt burden. This mirrors the country’s chronical national indebtedness, and as well risks creating a generation of financially constrained youth that are incapable of contributing meaningfully to our economy.”
The group, therefore, called on the Federal Government for the interest of Nigerian students to discontinue the reform process and give room for a holistic consultation and amendment before legislation.
“We call on all patriotic legislators and all well-meaning Nigerians to study the Bills with keen interest and ensure justice to our educational institutions and Nigerian students.”
