The Controversial Tax Reform Bill and the Education Silent Killer

By Professor Abdelgafar Amoka

ASUU has been going on a “selfish” strike over the revitalization of public universities as the state of the universities since 2012 is beyond the TETFund gradual intervention. Jonathan’s government was able to reason with ASUU and set up the committee that performed the NEEDS Assessment of the public universities, both federal and state, and the cost implications. The committee was the first to use the word: TETFund Universities. The government made provision for the fund for the first year.

The idea was that if the universities had been revitalized within the 5 years timeline, TETFund intervention could then be used to sustain the structure. The mission was technically abandoned by the Buhari government. Rather than uphold that mission, the Buhari government was busy establishing more universities with TETFund while the existing ones were struggling to breathe. Meanwhile, the public was happy over the dehumanized treatment that ASUU got from Buhari’s government. ASUU was considered an enemy of the government of Buhari.

Then, the Tinubu government came and assumed all was and still is well with the universities and the general education system. He felt NELFUND was the solution to our education crises and he focused on that. Of course, ASUU made its position known. But rather than engage in objective discussion, the government is using the 2022 withheld salaries and the tough economy as bait to discourage strike actions. It’s already established that we are all hungry. So, he expected that the fear of extreme hunger without salary should scare lecturers away from the idea of a strike.

Beyond that, Tinubu’s government want to cut off the intervention funds for the public universities by 2030. So, in the controversial tax reform bill, TETFund will cease to exist by 2030. What they are silent about is the fact that from 2030, public universities will be funded purely with tuition fees from loans from NELFUND.

Sorry, the presidency said that is information that the government don’t intend to scrap TETFund. FG will only stop the funding source (education tax) and expect TETFund to seek alternative funding sources. We are all educated. TETFund was established from Education Tax Act. What becomes of TETFund if it is cut off from the Education Tax fund? This is a common sense question.

VAT increment while workers salary can’t commute from home to work at the moment, and you are not willing to pay more? My monthly net salary after minimum wage consequential adjustment increased by ₦29,000. Technically, the government don’t believe that the subsidy removal and floated naira have an effect on my salary. Who increases VAT during economic hardship? Living a decent life is considered as “Sharholiya” or “fake life”. Poverty is our trademark.

Why are we expected to pay more tax? I guess that may be connected with Bill Gates’ statement in September 2024 that Nigeria’s tax collection rate is low. Also, as the debt burden grows and the government take more loans, they have to demonstrate they can pay the loans. Any form of subsidy must be removed, and tax increases to demonstrate to the IMF that the loans can be serviced as we take more.

To IMF Nigeria is doing great despite the poverty level. Subsidy removal and improved tax collection are to give us better education and healthcare. Where is the improvement after subsidy removal? Rather drugs are no more affordable to the sick while the political class are having a great time with our resources. I received a lot of benefits as a worker and taxpayer in Norway. Where are our taxes in Nigeria? Where are the benefits?

The question is this. Do you make this sort of major policy change for a country without wide consultations? Why the fear to sit and discuss this reform? Why the fear of sitting together to discuss the kind of education that we want and agree on how it should be funded? Why the lobby to hurriedly pass the tax reform bill without subjecting it to scrutiny from all stakeholders? Who were those that looked at the impact of the reform on education?

A senator said the controversial tax reform bill will be passed and heaven will not fall. Of course, you are right. Heaven will not fall. After all fuel subsidy was removed and naira floated. The policy came with serious economic hardship and heaven didn’t fall. We were told that the savings from subsidy removal would be injected into education and health, but we didn’t see anything after one and a half years of subsidy removal, and heaven didn’t fall.

Heaven will also not fall if this reform comes with more hardship. We will always cope as we are coping now.

The education system is nose-diving to a ridiculous state, and we all siddon dey look. The new education minister was recently reported to have said the education curriculum will now be 80% practical and 20% theory. I don’t know the facilities that he has placed in our schools to achieve that. Maybe it will be done at the mechanic workshops along the Zaria Funtua road.

The tax reform bill is set to cause more harm to the education system. Let’s have an education summit to discuss the sort of education that we want and how to fund it.