The students’ wing of the Coalition of Northern Groups (CNG) has kicked against the tax reforms bills currently before the National Assembly, saying they will destroy the education sector.
The group, in a statement on Thursday, said the bills are designed by the enemies of the state to undermine our already paralysed educational sector.
The CNG students wing, which particularly frowned at the aspect of one one of the bill as it affects the Tertiary Education Trust Fund (TETFund), said starving the agency of its 3 per cent education tax, would spell doom for the nation’s tertiary education sector.
While questioning the rationale for proposing huge tax allocation to the Nigerian Education Loan Fund (NELFUND), CNG Students’ wing, in the statement signed by its coordinator, Hassan Adamu, said the bills will have a long-term negative consequences in the country.
The group, which also expressed concerns on the narrow NELFUND coverage in the Northern region, called on the agency to ensure more tertiary institutions in the North are covered.
The statement reads in full : “The Coalition of Northern Groups (Students Wing) has watched carefully in the recent weeks and months about activities of the Nigerian Government regarding certain policies on education and has x-rayed its negative impacts and detrimental consequences to the educational sector in the country and Nigerian students in particular.
Without any fear of contradiction, we say the (tax) committee is any enemy to the teeming Nigerian students that have struggled to bring the current democratic dispensation in the country. As a matter of urgency we draw the attention of all well-meaning Nigerians on the following and necessary action must be taken within a shortest period of time.
- Impact of Tax Reform Bill on Education in Northern Nigeria:
The Coalition of Northern Groups Students-Wing reject in totality the proposed TAX Reform Bill that is designed by the enemies of the state to undermine our already paralysed educational sector. As a matter of fact the bill is designed 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.
The reform will have a deteriorating effect on critical Institutions that has support the educational development in the country. We see the Tax Reform Bill 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 a mortuary.
a. The Tertiary Education Trust Fund (TETFUND).
The contributions of this single institution since its inception can not and will not be over emphasised having played a pivotal role in financing researches, physical infrastructure, Staff training and development, 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 Bill. TETFund will not have any allocation by 2023 which by implication will lead TETFund to extinction, a situation which is tantamount to degrading the Tertiary Education system in Nigeria.
It is imperative to state that the Bill will favour NELFUND with its long-term negative consequences which will increase access to student loans which will trap our youth in bondage and possibly turn the institutions into revenue generating agencies.
NELFUND is currently funded by 1% deduction collected from Taxes, levies, and duties collected by 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 new Tax Reform Bill.
The implication of this is that, the proposed bill if passed 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 could also make our public Tertiary institutions to be one revenue generating entity, paving way for privatization of our Tertiary institutions there by 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 capable of contributing meaningfully to our economy.
Passionate Appeal.
- We call 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 Bill with a keen interest and ensure justice to our educational institutions and Nigerian students.
- The NELFUND disbursement in Northern Institutions and Shortcomings
The coalition of Northern groups students wing (CNG-SW) as vanguard of the Federal Government Students Loan Scheme, haven participated actively in sensitizing the students, parents and the general public about the Student Loan Scheme (Bill and Act) as well as sensitization and mobilization of students to apply for the loan; have critically studied and analysed the released of disbursement statistics by National Education Loan Fund (NELFUND) across tertiary institutions in the Northern region.
From the disbursement statistics over eighty-two thousand nine hundred and fifty-one (82,951) students across Forty-Five (45) institutions benefited from the region. It is imperative to clarify that out of the Two-Hundred and thirty-four (234) Federal and State tertiary institutions cleared by NELFUND for the first Phase only Ninety-six (96) were from the north; with Fifty-one (51) tertiary institutions yet to receive disbursement.
Beneficiaries have been receiving their up-keep allowance. Issue Arising from Disbursement.
While some institutions have refunded tuition fees paid by beneficiaries before
disbursement to them, some are refunding certain percentage others are yet to commence the refund. Some beneficiaries have variation on the amount of loans disbursed to them and the amount payable as school fees leaving. The delay in disbursement and tuition fees payment pressure by Tertiary institution on beneficiaries.
Our concern
There is a deliberate attempt to narrow the NELFUND coverage in the Northern region as the total number of Federal and State tertiary institutions in the region is more than 96. In Zamfara state for instance only four (4) out of the Ten (10) public tertiary institutions were covered, Sokoto only 4, Kano only (4). 13 and so on. Priority was also given to federal institutions with few state-owned institution tertiary institutions taking advantage of the Student Loan Scheme to increase tuition fees for the 2024/2025 session, will abuse the scheme. The hike of tuition fees with the current economic reality will be a catastrophe to students and the scheme will be perceived as another form of extortion.
The delay in refund can give unpatriotic public servants room to embezzle the money. It is needless to remind us how snake and other animals were swallowing money years ago.
The pressure of tuition fees payment deadline usually issued by many tertiary
institutions have led to the withdrawal of indigent students, missing of academic
activities such as examinations in some cases leading to poor academic performance or total forfeiture of their academic pursuit which has led to the increase number of drop out in northern institutions to up to 60 percent.
Recommendations
- We call on NELFUND to expand their coverage as the total number of Federal and State tertiary institutions in the region are more than 96 institutions. This is to ensure access for all students.
- NELFUND should ensure early disbursement to institutions to avoid pressure on beneficiaries by management.
- Tertiary institutions are advised to refund beneficiaries their tuition fees in full. In a situation were by institution wishes to refund on instalment/percentage, reasons should be communicated to the beneficiaries
- Tertiary institutions should drop any agenda of increment of tuition fees; as the CNGSW will not tolerate hike in tuition at this material time.
- Tertiary institutions should also desist from setting deadline for beneficiaries to pay off their tuition fees, since NELFUND has made commitment and commence
disbursement. “
