Reps to Investigate Reckless Use of N2.3trn Tertiary Education Tax

Cursory: The House of Representatives plans to investigate alleged N2.3 trillion abuse in TETFund between 2011 and 2013. Concerns include financial abuses, mishandling of operations, and project executions.

The House of Representatives has announced its intention to investigate the alleged misappropriation of N2.3 trillion in tertiary education tax by the Tertiary Education Trust Fund (TETFund) from 2011 to 2013. This resolution was passed during the plenary session on Tuesday after a motion was co-sponsored by Olusola Fatoba, David Fouh, and Zakari Nyanpa.

The tertiary education tax was introduced as a specialized corporate levy aimed at providing dedicated funding for higher education in Nigeria, including initiatives such as capital projects, research, and development.

Under the Tertiary Education Trust Fund Act of 2011, TETFund was entrusted with the responsibility of imposing, managing, and distributing the tax to public tertiary institutions in Nigeria. Additionally, public companies operating in the country are required to pay 2.5 percent of their profits as education tax to TETFund.

During the motion, Fatoba, the lead sponsor, emphasized that since its establishment in 2011, TETFund has generated significant revenue in the form of trillions of naira.

He alleged that the “fund is reputed for numerous financial abuses in its operations, award of contracts and execution of projects”.

“The standard operating procedure within the fund is porous and does not create a platform for proper supervision of projects domiciled with tertiary institutions, with disbursements of funds happening without tracking and payments being made despite the failure of contractors to achieve milestones required for such payments,” he said.

“These abuses, actions, inactions and infractions have resulted in the misappropriation of funds and unjust enrichment of funds worth about N2.3 trillion.”

The lawmaker said if urgent steps were not taken to investigate the allegations, the “decay of the tertiary education system” will continue to increase”.

This, he said would continue to lead to “strikes by academic workers, substandard institutions, lack of faith in the system, migration of talented youths and total collapse of the education system arising from gross abuse of laudable special intervention programmes and aspiration of the president to provide opportunities to young people through quality tertiary education”.

The motion was adopted when it was put to a voice vote by Tajudeen Abbas, the speaker.The house set up an ad hoc committee to investigate the allegations and report back within four weeks for further legislative action.

Source: Thecable

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