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COEASU says proposed tax reform will destroy public tertiary institutions

Colleges of Education Academic Staff Union (COEASU) has sounded a warning to the Federal Government, urging it to reconsider its proposed tax reforms that could potentially phase out funding for the Tertiary Education Trust Fund (TETFund).
According to a statement issued on Wednesday by COEASU National President, Smart Olugbeko, the proposed tax reform is a “dangerous ambush aimed at destroying public tertiary institutions in Nigeria.”
Olugbeko emphasized that COEASU strongly rejects any aspect of the proposed tax administration that aims to withdraw or impede the source of funds to TETFund.
TETFund has been instrumental in providing funding for infrastructure, research, teaching, and learning facilities, as well as staff development in tertiary institutions.
Olugbeko noted that prior to the establishment of TETFund, infrastructure in tertiary institutions was in shambles, and the government was clueless about the way forward.
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COEASU also expressed concerns that the tax reform could lead to the commercialization of tertiary education, making institutions vulnerable to market forces.
“The aspect of the tax reform that allowed TETFund to be stifled of its source of funds will gradually drag tertiary institutions into the stock market, making them become capitalistic ventures for the highest bidders,” Olugbeko warned.
The union advised the Federal Government to expand its revenue sources instead of undermining TETFund.
“Rather than killing TETFund through the purported tax reform, the FG should strengthen and expand its revenue accrual sources with a view to sustaining the Fund’s commendable efforts in our institutions,” Olugbeko said.
COEASU has called on stakeholders in education, including students, parents, educators, and civil society organizations, to join forces in rejecting the proposed tax reform and saving public tertiary education in Nigeria.
Meanwhile, the Presidency has denied claims that the proposed tax reform bill aims to scrap TETFund, NASENI, and NITDA.
According to a statement by Bayo Onanuga, Special Adviser to the President on Information and Strategy, the bill seeks to consolidate some of the earmarked taxes imposed on companies and replace them with a single tax to be shared with key agencies as beneficiaries in a phased manner until 2030.
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