What The Education Tax Is Doing in Nigeria’s Public Tertiary Institutions *by Aisha Attahiru Jega

Muhammad Nami, FIRS chairman

Some of the most prevalent challenges confronting public tertiary institutions in Nigeria are funding, management problems, obsolete equipment, poor learning facilities and infrastructure. Chief among these that deals the worst blow is funding. Most of the public tertiary institutions in the country are grossly underfunded. When there were just a few tertiary institutions, Government took up the burden of funding the institutions solely but from the mid 1980’s, there was a massive increase in the number of public tertiary institutions and in students’ enrolment in Nigeria. This increase got to the point where Government openly acknowledged that it could no longer shoulder the responsibility of funding institutions alone. This led to the promulgation of the Education Tax Act No7 in January 1993, alongside other education related Decrees. The Decree imposed a 2% tax on the assessable profits of all companies in Nigeria which was earmarked to fund public tertiary institutions in the country.

The Education Trust Fund (ETF), now Tertiary Education Trust Fund Act (replaced in 2011), is an intervention agency set up to provide supplementary support to all levels of public tertiary institutions, with the main objective of using funding alongside project management for the rehabilitation, restoration and consolidation of Tertiary Education in Nigeria. Initially the Education Tax Act No7 of 1993 mandated the Fund to operate as an Intervention Fund to all levels of public education (Federal, State and Local).

The Federal Inland Revenue Service (FIRS) is today empowered by the Education Act to assess and collect Education Tax. The Tertiary Education Trust Fund (TETFUND) also known as “The Fund” administers the tax imposed by the Act, and disburses the amounts to educational institutions at federal, state and local government levels. It also monitors the projects executed with the funds allocated to beneficiaries. The distribution for tertiary education is shared between Universities, Polytechnics and Colleges of Education in the ratio of 2:1:1. The 1998 amendment changed the disbursement to 50% (Tertiary education); 25% (polytechnics) and 25% (Colleges of Education) with emphasis placed on science and technology due to the expensive nature of training within the country.

The Fund is managed by an eleven (11) member Board of Trustees with members drawn from the six geo-political zones of the country, as well as representatives of the Federal Ministry of Education, Federal Ministry of Finance and the Federal Inland Revenue Service. It is disbursed for the general improvement of education in federal and state tertiary education institutions, in form of annual and special interventions specifically for the provision and/or maintenance of: Essential physical infrastructure for teaching and learning, institutional materials and equipment, research and publications, academic staff training and development and, any other need which, in the opinion of the Board of Trustees, is critical and essential for the improvement and maintenance of standards in the higher educational institutions.

So far, what has the Education Tax done for Nigeria?

Tertiary education tax is imposed on every Nigerian company at the rate of 2.5% (as amended in the 2021 Finance Act) of the assessable profit for each year of assessment. The tax is payable within two months of an assessment notice from the FIRS. In practice, many companies pay the tax on a self-assessment basis along with their Companies Income Tax. Failure to pay education tax comes with a penalty. For a first offence, the fine is N10,000 or imprisonment for a term of three years while for a second or subsequent offence, the fine is N20,000 or imprisonment for a term of five years or it could be both fine and imprisonment.

From 1998-2018, a total of about N1 trillion was disbursed by TETFUND to universities, polytechnics and colleges of education, and as of 2021, 221 institutions were beneficiaries of the fund including 87 universities, 65 Polytechnics, and 69 Colleges of Education. The fund has been used to cater for interventions such as physical development in public tertiary institutions, including construction of physical infrastructure like lecture halls and theatres, laboratories, construction of libraries and academic and non-academic staff offices, procurement of equipment and furniture, procurement of hard and soft copies of books and academic journals, as well as ICT software services/licenses.

Another intervention scheme funded by education tax is library development in tertiary institutions. This is done through the provision of library equipment and e-learning facilities. The fund is also used to support authorship of relevant indigenous academic textbooks for teaching and learning in tertiary institutions and the establishment of 7 academic publishing centers and funding the publishing of academic research journals. Part of the fund is set aside and used to offer Academic staff in Nigerian public tertiary institutions study fellowships, to undertake masters and doctorate degrees. There is also the National Research Fund (NRF) a non-infrastructural special intervention that is aimed at promoting the conduct of applied research and innovation by academics, in public tertiary institutions which focuses on Science, Engineering, Technology and Innovation, Humanities and Social Sciences. As at 2020, the NRF funded 457 projects and this dates back to its inception.

It is a known fact that the foundation of education is frail when education is not well funded, and the products of such foundation are weak intellectuals. The Education Tax has impacted positively in Nigeria’s educational development with particular focus on public tertiary institutions. It is no gainsaying that without the Education Tax, earmarked for the transformation of education in Nigeria, the nation’s public tertiary institutions would be a backwater compared to its counterparts in other climes. It is not surprising however, that there is the conspicuous stamp of “TETFUND” on most of the infrastructure in our public tertiary institutions today, and this is courtesy of the taxes we pay.

How Robbers Raided Socialite Olabisi Akanbi's Labo Autos for Three Hours, Stole Cars Worth N200m

 

 

Labo Autos, a car sale mart owned by Lagos socialite, Olabisi Akanbi, was penultimate week, raided by a gang of armed robbers.

 

The car lot located at Gowon Estate, Egbeda in Alimosho area, Lagos, was reportedly vandalized by the robbers who reportedly wore masks and cars which prices were estimated at about N200 million stolen.

 

The robbery operation which was recorded by the CCTV mounted at the lot showed the night guard named Ibrahim being assaulted and ordered at gunpoint to open the exit gate at the back of the shop

According to the Labo Autos CEO, the cars were burgled with their chassis taken away and valuable items, including windshields and side mirrors.

 

During the incident that lasted about three hours, the guard was reportedly chained to the inner gate and covered with waste bin bag.

 

The incident has been reported at the area police division, we learnt.

Trade Expert, Adekunle Ayoola, Seeks Deeper Poland-Nigeria Relations

 

An expert in international trade and Chief Executive Officer of Afro Euro Investment, Prince Adekunle Adebayo Ayoola has called for a closer Poland-Nigeria bilateral relationship.

 

Prince Ayoola revealed that he was very confident that a stronger Poland-Nigeria bilateral cooperation would translate to greater prosperity for the two nations.

 

He said given how naturally endowed the two countries are, the desire of the two nations to be partners in progress would no doubt bring with it great economic gains and leave open several widows of opportunities.

 

Ayoola made this disclosure while speaking on the imperatives of the working visit of the President of Poland, Andr...Duda to the country.

Ayoola

 

The international trade expert who is based in Poland has however urged the Nigerian government to use the occasion of this visit to demand a comprehensive renewal of the trade relationship that will help the country create opportunities for its agricultural commodities to make inroads into Europe through Poland.

 

He said the country could also benefit in the area of technology transfer, shipbuilding, and cooperation on security among others.

NANS Asks Police to Arrest 'President-Elect', Umar Faruk *he's an impostor

 

The Convention Planning Committee of the National Association of Nigerian Students has released the list of the winners of the Saturday elections of the student body.

 

The committee also asked security operatives to arrest impostors parading themselves as new leaders of the association.

 

One Umar Faruk Lawal had earlier declared himself as the president-elect.

 

However, the election committee in a communique signed by its chairman, Bappare Muhammad and clerk, Adeyemi Azeez named Barambu, a student of the Federal University, Dutse as new president of the association.

 

According to the committee, Barambu polled 292 votes to defeat his rival, Lawal, who polled just eight votes.

 

Former NANS JCC Ondo chairman, Akinteye Babatunde Afeez, is the Vice President, External Affairs.

 

 

 

Akinteye polled 245 votes to defeat his only rival, Dan Fodio who polled 43 votes.

 

Below is the list of the new elected officers;

1. Usman Umar Barambu
President Elect
2. Attah Nnalue Felix
Senate President Elect
3. Usman Baba Kankia
Secretary General Elect
4. Victor W C Ezenagu
VP National Elect
5. Akinteye Babatunde
VP External Elect
6. Suleiman Muhammad Sarki
VP Special Duties Elect
7. Giwa Yisa Topnotch
National PRO Elect
8. Chinyelu Chinelo Okolie
National Treasurer Elect
9. Vanessa Egbeahie
Vice President Campus Affairs Elect
10. Mohammed Shehu
Ex-Officio 2 Elect
11. Ossai Chika
Assistant Secretary General Elect
12. Godwin Asuquo
Financial Secretary Elect
13. Salawudeen Kamorudeen
Director of Travel and Exchange Elect
14. Umar Afkhawa
Sports Director Elect
15. Ekundina Segun Elvis
Deputy Senate President Elect
16. Olatunji Baki
Clerk Elect

 

 

Kidnapped Zamfara Worshippers Working in Bandits' Farm as Labourers

 

The 44 worshippers abducted from a mosque in Zamfara community last Friday have been subjected to physical labour on armed men’s farmlands.

Residents said that the bandits had called to tell relatives that the captives were with them and working on their millet and sorghum plantations but had yet to demand ransom.

 

“Our millet plantations are due for harvest and the captives must do the work for us,” one of the bandits was quoted as saying by a resident, Abubakar Bukkuyum.  

 

Last Friday, bandits abducted dozens of worshippers from a central Juma’at Mosque in Zugu community of Bukkuyum Local Government Area of Zamfara State. 

 

Residents said the armed men hid their guns inside their clothes and stormed the mosque when the Imam was about to start delivering sermons and they asked those on the premises of the mosque to get inside. 

 

“No one saw them with guns and many people mistook them as worshippers. Nobody paid attention to them because they hid their guns.

 

 “However, shortly after they moved inside the mosque they brought out the rifles and fired some shots as a warning.

 

 “They herded the congregants into the bush but some of the worshippers managed to scramble out of the mosque to safety. The muezzin was among those kidnapped but the Imam was able to escape the assault.

 

 “Some those who were outside the mosque were also abducted.

 

When contacted for an update, the spokesman of the police in the state, SP Muhammad Shehu, said search and rescue operation had already commenced.

Tourism And Hospitality Industry Drives Entertainment -Jamiu Ojediran, CEO, Climax Travels & Tours

 

 

 

 

In recent years, many Nigerians in disapora have been inspired to utilise human and material resources within their reach to establish businesses across various industries in Nigeria which have empowered people and brought about improvement on the economy in terms of exploiting available opportunities to build the gross domestic product of the economy. Among such is Mr. Jamiu Abiodun Ojediran, the Managing Director and Chief Executive Officer of Climax Travel and Tours and Climax Entertainment and Events that has been adding immense values to the growth of the Nigerian Travels, Tours and Hospitality Industry, as well as the Entertainment Industry.

 

 

 

With his individual competence, academic acquisitions, and as a professional armed with a degree in travels, tourism and hospitality and his practical business experience gathered in the process of running both organisation he established, he has demonstrated his competence as someone who understands his onions and has what it takes, thereby both organisations he led has demonstrated excellence across the years.

 

 

 

Climax Travel and Tours has grown to be a notable organisation in the areas of various visa application categories to various countries including study abroad visa and temporary work permit for which the company is highly respected. In his view, the MD/CEO of the organisation made it known that to sustain organisational success in Study Abroad and other visa categories, honesty, integrity and understanding what the business entails are very important.

 

 

 

Speaking on this, he stated that, “I focused on specific international travel programmes and assisted clients, then I started travelling abroad, precisely to the United Kingdom, after which I took the necessary step to proceed for further education by acquiring a degree in International Tourism and Hospitality Management from the University of Sunderland in UK”.

 

 

 

With about one and a half decade of existence, Climax Travel and Tours which was conceived as a passion transformed into a legitimate business entity operating within the ambits of the law and professionalism, to create employment and solutions for clients on visa application, consultations, air-ticketing and hotel reservations and study abroad programmes. Their services also cover other visa application categories such as visits, family visits, settlement, temporary work permits and others.

 

 

 

While explaining the relationship between Climax Travel and Tours and Climax Entertainment and Events, Mr Jamiu Abiodun Ojediran stated that Climax Entertainment and Events is a build-up on the achievements made with Climax Travels and Tours and also because Travels and Entertainment are interwoven.

 

 

His enviable arrays of clients are made up of notable celebrities in the music, films and entertainment industry.

 

 

 

Having worked with various top artistes and celebrities, and with the combined efforts and synergy among the two organisations that he sits atop, Mr Jamiu Abiodun Ojediran has successfully initiated and partnered with others to host music and entertainment events in United Kingdom, South Africa, United Arab Emirates and Turkey. He explained, “come to think of it, the same set of artistes, celebrities and public figures we served in Climax Travels and Tours make up a sizeable number of those patronising Climax Entertainment and Events, if we had not built effective customer relations with them in the travels and tourism sector, will they be patronising us in the entertainment and events sector?”

 

 

 

Within a short entrance of Climax Entertainment and Events the company have gained grounds and patronages and the CEO says this is largely due to how the company has been handling her clients, “In business you need to learn how to build effective customer relations, no business marketing skill builds more loyal clients than effective customer relations because, people do not care how much you know, they are concerned with how much you care? Therefore, you need to be caring and concerned about your customers to give them the best”.

 

 

 

Mr Jamiu Abiodun Ojediran strongly believes that the Nigerian Travels, Tours and Hospitality Industry as well as the Entertainment Industry can greatly add to the country’s foreign exchange and GDP just like the British Royal family which generates about 500 million British pounds for UK tourism each year through tourist visits to Buckingham palace, Windsor Castle, Tower of London and other monarchy heritage attractions.

 

 

 

“Nigeria has the likes of Osun Osogbo, the Kano Durbar, Ofala, the Argungun Fishing festival and many other fascinating events and tourism sites that can attract visitors and patronage from various parts of the world. So if the travels, tourism and hospitality industry is well organised with government’s strong backing you can imagine how much we stand to make”, he stated.

 

 

 

Having travelled across different continents including Africa, Europe, North America and Middle East, Mr Jamiu Abiodun Ojediran has been able to successfully transform his international travels experience and exposure into building both Climax Travel and Tours with Climax Entertainment and Events into enviable brands.

How Primate Ayodele Prophesied William Ruto’s Victory as Kenyan Next President Against All Odds

It’s definitely not a good time for the former prime minister of Kenya, Raila Odinga following his unsuccessful bid to overturn William Ruto’s election victory at the Supreme Court of Kenya.

Raila Odinga had failed to accept the election result that saw William Ruto winning against all odds and decided to seek legal means to nullify the election or declare him as the rightful winner of the election.

Odinga in his voluminous petition submitted to the Supreme Court alleged that the election was not fair enough and that the portal of the IEBC was opened for Ruto’s camp to manufacture numbers to favour them.

However, the supreme court of Kenya has thrashed the case, stating that there was no evidence to prove the allegations especially for the fact that the IEBC was able to prove its credibility in court.

This development has no doubt fulfilled the prophecy of famous Nigerian prophet, Primate Elijah Ayodele which he released a few days after the election. The man of God who prophesied the victory of William Ruto gave a warning to Raila Odinga, urging him to accept the result of the election instead of going to court.

This warning was published on top Kenya news website, Kenyans.co.ke, and these were his words

"His Excellency, Raila Odinga should accept the result of the election in good faith, his time has elapsed and trying to compromise will only dent his image. Attempts to upturn what God has done will only lead to crisis," (https://www.kenyans.co.ke/news/78604-nigerian-prophet-primate-ayodele-who-predicted-rutos-win-warns-uhuru).

Few days later, the man of God warned Odinga again not to waste time going to court because God has given William Ruto his victory. This was published on top Nigerian news website, Daily Post and these were his words

“My message to Raila Odinga is that he shouldn’t waste his time any longer, William Ruto’s victory is sealed, court or no court, God has given him the victory.Stop dragging Kenya backwards; God has great plans for Kenya under the administration of William Ruto; the country should not be dragged backwards against the wish of God with battles from parties that lost the election, victory has been sealed already.” (https://dailypost.ng/2022/08/22/presidential-election-dont-go-to-court-god-behind-ruto-primate-ayodele-warns-odinga/)

As the man of God warned, Raila Odinga failed attempts to upturn the victory of Ruto has indeed shown that the time of Odinga to become president of Kenya has elapsed. Odinga should have listened to the warnings of the man of God, maybe he would not have faced a second defeat like this.

Long before the election, Primate Ayodele had warned Odinga not to accept the endorsement of President Uhuru Kenyatta because it would be a dent to his victory in the election but he never listened. He had thought, just like everyone else,that the backing of the incumbent president will have a positive impact on his election but as it played out in the election, Odinga was described as the president’s project and this was a factor that led to his loss in the election.