By Awwal Umar Kontagora The Coalition of Northern Groups (CNG) Student Wing has strongly opposed the Federal Government's proposed Tax...
By Awwal Umar Kontagora
The Coalition of Northern Groups (CNG) Student Wing has strongly opposed the Federal Government's proposed Tax Reform Bill, citing its potentially devastating impact on education in Northern Nigeria.
In a statement by its National Coordinator, Hassan Adamu, the group described the reform as a deliberate attempt to undermine an already fragile education sector. "The proposed Tax Reform Bill is designed by enemies of the state to paralyze our education institutions further, erasing any progress made in the sector," Adamu said. He vowed that Nigerian students would resist the bill.
According to Adamu, the reform will significantly affect the Tertiary Education Trust Fund (TETFUND), which is currently funded by a 3% tertiary education tax on companies’ annual assessable profits. Under the proposed reforms, TETFUND’s share of the levy will drop to 50% by 2025 and then to 66% by 2029, before eventually being eliminated by 2033. The coordinator warned that this would lead to the collapse of TETFUND, crippling Nigeria’s tertiary education system.
Adamu also expressed concern about the bill’s preference for NELFUND (National Education Loan Fund), emphasizing its long-term negative implications. He argued that the shift towards student loans would trap Nigerian youth in financial bondage and transform educational institutions into mere revenue-generating agencies.
The coordinator noted that the coalition had actively supported the Federal Government’s student loan scheme by raising awareness among students, parents, and the public. However, after analyzing the disbursement statistics provided by NELFUND, the group raised concerns about regional disparities. Adamu revealed that while 82,951 students from 45 institutions in the northern region had benefited from the scheme, out of the 234 cleared tertiary institutions nationwide, only 96 were from the North. Fifty-one northern institutions are still awaiting disbursement.
He also highlighted operational challenges faced by students and institutions, such as delayed disbursements, discrepancies between tuition fees and loan amounts, and pressure from institutions setting payment deadlines. These issues, Adamu warned, have contributed to a significant dropout rate in Northern institutions, estimated at 60%.
The CNG Student Wing has called on tertiary institutions to fully refund tuition fees paid by loan beneficiaries or provide clear communication for partial refunds. The group also urged institutions to halt tuition fee hikes and avoid enforcing payment deadlines, given NELFUND’s commitment to disbursing loans.
Adamu stressed that failure to address these issues would exacerbate the struggles of indigent students, leading to more withdrawals and further eroding the quality of education in the region. The coalition has vowed to continue its advocacy to protect the rights of students and ensure equitable access to education.
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