By Niyi Jacobs
The proposed tax reform bills currently before the National Assembly could bring sweeping changes to Nigeria’s tax framework, with significant implications for the funding of tertiary education and other critical sectors. The bills, championed by President Bola Tinubu, aim to streamline tax laws but have sparked widespread opposition, particularly from stakeholders in the northern region.
Central to the proposed reforms is the phased removal of exclusive tax privileges for the National Information Technology Development Fund (NITDF), the National Agency for Science and Engineering Infrastructure (NASENI), and the Tertiary Education Trust Fund (TETFUND). These levies currently play a crucial role in financing technological and educational development in Nigeria.
Under existing laws, companies with profits exceeding N100 million pay:
1% of profit before tax (PBT) to NITDF.
0.25% of PBT to NASENI from sectors such as banking, telecommunications, ICT, and oil and gas.
3% of assessable profit to TETFUND.
The new bills propose redirecting these funds to the Student Loan Fund, making it the primary recipient of all educational development taxes. This shift aligns with the government’s broader strategy to increase access to tertiary education through affordable loans.
While proponents argue that the reforms will enhance efficiency and address funding gaps in education, critics warn of the potential consequences for tertiary institutions and technological innovation, which rely heavily on these levies.
The debate in the National Assembly has intensified, with disagreements over the proposed sharing formula for Value Added Tax (VAT) further complicating discussions. Despite resistance, the bills underscore the Tinubu administration’s commitment to overhauling Nigeria’s tax system to meet evolving national priorities.
