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Home Sectors Education

TETFund warns institutions may lose funding over low enrollment, poor accountability 

Rosalia Ozibo by Rosalia Ozibo
May 13, 2025
in Education, Sectors
FG proposes TETFUND to allocate 30% of its funds for student loans 
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The Tertiary Education Trust Fund (TETFund) has warned that institutions that fail to meet enrolment targets, maintain academic performance, or appropriately retire allocated funds risk losing access to future funding.

The warning was issued by the Executive Secretary of TETFund, Sonny Echono, during a one-day strategic engagement held on Monday in Abuja with Heads of Institutions, Bursars, and Heads of Procurement from beneficiary institutions.

Echono raised concern over the low number of students in some institutions, citing a case in the Southeast where a polytechnic with only 30 students has been operating for four years while still receiving public funding.

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“This development is embarrassing, particularly for a region known for its strong educational culture. This kind of inefficiency undermines our mission and brings unnecessary scrutiny from the presidency and the public,” he said.

Accountability now tied to funding access 

The TETFund boss criticised institutions for failing to access and properly utilise allocated funds. He stressed that any institution unable to retire or apply its funding appropriately would have its funds reallocated.

He also warned institutions that blame incomplete or abandoned projects on previous administrations.

“When you inherit an office, you inherit both assets and liabilities. We urge you to take ownership and work closely with the community to resolve long-standing infrastructure challenges,” he said.

Domestic capacity building  

Echono addressed the recent suspension of the foreign component of the Academic Staff Training and Development programme, stating that TETFund is shifting focus to empowering local institutions.

“Although knowledge is universal, it must also be contextual. Our universities must be centres of excellence, not just hubs of aspiration,” he said.

He also disclosed efforts to provide hospital accommodation for medical students during clinical rotations, which he said will be scaled across institutions.

Reacting to criticism over the proliferation of tertiary institutions, Echono defended the government’s decision to expand educational access, citing Nigeria’s youth-heavy population.

“Our young people make up nearly 60 per cent of the population. If we don’t create space for them, the consequences will be dire.  

We must ensure we increase enrolment because we want a large chunk of our students to get access to education,” he said.

More insights 

The Executive Secretary of the National Universities Commission (NUC), Prof. Abdullahi Ribadu, represented by the National Project Coordinator, Joshua Attah, commended TETFund for its role in strengthening Nigeria’s higher education system.

He said the fund has significantly improved infrastructure, research, staff development, and academic standards across the country.

Also speaking, the Executive Secretary of the National Board for Technical Education (NBTE), Prof. Idris Bugaje represented by Prof. Bashiru Hassan called for transparent discussions on procurement challenges. He said institutions must comply with procurement rules and build institutional capacity to deliver on expectations.


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Tags: Low enrollment in Nigerian institutionsSonny EchonoTertiary Education Trust Fund
Rosalia Ozibo

Rosalia Ozibo

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The Finance Act is the solution of President Buhari to the revenue problem which the Finance Minister, Ahmad Zainab, said Nigeria has. The Nigerian government is looking to grow its revenue through taxes, and one of such is the digital tax which Vice President, Yemi Osinbajo, said will commence despite the threat of the US which is aimed at protecting the silicon companies. No more back door operation: Facebook, Google, Amazon, YouTube and many more digital businesses have a sizeable market in Nigeria, but don’t have a physical structure for their operations; this has cost Nigeria tax revenue. These companies are known to prefer situating their companies in tax havens where taxes are low compared to other African and European countries. Ireland and Bermuda are some of the tax havens for these multinational companies. But according to Osinbajo, the period of making gains from their operation in Nigeria without paying tax is over. Osinbajo, while speaking at The National Defence College, Course 28 Lecture Event, said that, “Let me also briefly mention the new provisions on Taxation of Digital Economy and Non-Resident Companies. This is a very important aspect of our taxation policy. Before the Finance Act, only companies that had a physical presence or a fixed base in Nigeria could be taxed. “So, most digital companies, I mean any of the big technology companies, or multi-national digital companies, that did not have physical offices in Nigeria, made significant income from Nigeria from online activities, such as advertising, movie streaming, online gaming and e-commerce from subscribers in Nigeria, but paid no taxes whatsoever because they did not have a physical base in Nigeria. So now we are no longer relying on the fixed base or physical address criterion.” He added that, “Under the Finance Act, once you have a Significant Economic Presence (SEP) in Nigeria, you are liable to tax. Whether you are a resident here or you are not resident as a company, as long as your economic presence is significant, you are liable to tax. If you are streaming online, advertising using Google adverts, whether you are resident here or not, you are now subject to tax. “So, non-residents who previously had no fixed base and no Nigerian tax liability will now be liable to tax based on the SEP criterion. The Minister of Finance is empowered to issue a regulation defining what Significant Economic Presence means. So, she just defines the scope of what we will be looking out for in terms of Significant Economic Presence.” Osinbajo explained. Nigeria is not alone in this crusade: Nigeria is not the only country trying to tax these technology companies. The European Union have also been coming after them for taxes. 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