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What the education tax is doing in Nigeria’s public tertiary institutions

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By Aisha Attahiru Jega

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 per cent 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 per  cent (Tertiary education); 25 per cent (polytechnics) and 25 per cent (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 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 per cent (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.

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U.S. army sets deadline for troop withdrawal from Niger

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The United States has initiated the withdrawal of its military forces from Niger Republic, following directives from the West African nation’s military leadership.

The withdrawal process, slated to be completed by September 15, 2024, marks the end of an era of American military presence in the country.

According to a press release jointly issued by the National Council for the Safeguarding of the Homeland and the US Department of Defense on Sunday, discussions between the two parties, held from May 15 to 19, 2024, in Niamey, Niger, aimed to ensure the orderly and safe withdrawal of US forces from the region.

Led by high-ranking officials such as Assistant Secretary of Defense for Special Operations and Low-Intensity Conflict, Christopher Maier, and the Chief of Staff of the Nigerien Army, Colonel-Major Mamane Kiaou, the discussions emphasised transparency and mutual respect.

The withdrawal encompasses troops stationed at key bases, notably the strategically significant $110 million drone base in Agadez.

“Representatives of the U.S. Department of Defense and the Department of National Defense of the Republic of Niger met from May 15 to 19, 2024, in Niamey, Republic of Niger, as part of a Joint Disengagement Commission, to coordinate the orderly and safe withdrawal of U.S. forces from Niger.

“These discussions between the militaries were conducted in complete transparency and with perfect mutual respect between the two parties.

“The U.S. Department of Defense delegation was led by the Assistant Secretary of Defense for Special Operations and Low-Intensity Conflict, Mr. Christopher Maier; and the Director of Joint Force Development in the Joint Chiefs of Staff, Lieutenant General Dagvin Anderson. The delegation of the Ministry of National Defense of Niger was led by the Chief of Staff of the Army, Colonel-Major Mamane Sani Kiaou,” the statement read in part.

Despite the military disengagement, both nations affirmed their commitment to ongoing diplomatic dialogue and cooperation in areas of mutual interest, including counterterrorism efforts.

“The U.S. Department of Defense and the Ministry of National Defense of Niger have reached a disengagement agreement to effect the withdrawal of U.S. forces, which has already begun. It is therefore agreed that this disengagement will end no later than September 15, 2024.

“Both delegations confirmed the guarantees of protection and security to the American forces during their withdrawal. The delegations also established procedures to facilitate the entry and exit of U.S. personnel, including overflight and landing clearances for military flights.

“The U.S. Department of Defense and the Nigerien Ministry of National Defense recall the joint sacrifices of Nigerien and U.S. forces in the fight against terrorism and commend each other’s efforts to build up the Nigerien Armed Forces. The Parties undertake to continue cooperation in areas of common interest.

“The withdrawal of U.S. forces from Niger does not affect the continuation of U.S.-Niger development relations. The United States and Niger are committed to ongoing diplomatic dialogue to define the future of their bilateral relations,” it added.

The US initially established a military base in Niger to combat armed groups aligned with al-Qaeda and ISIL operating in the Sahel region, which includes Burkina Faso and Mali. The primary airbase in Agadez, located about 920km from the capital Niamey, has been a crucial site for both manned and unmanned surveillance flights and other military operations.

On April 19, 2024, the US announced plans to withdraw its troops from Niger due to the West African nation’s growing alignment with Russia and its distancing from Western powers. Consequently, the US Department of State agreed to pull out approximately 1,000 troops from the country, which has been under military rule since July 2023.

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Reps seek more financial investment for federal teaching hospitals

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The House of Representatives Committee Chairman on Health Institutions, Amos Magaji, has called for a sustained financial investment in the federal teaching hospitals across the country.

He said this will be in line with the Renewed Hope agenda of the President Bola Tinubu-led administration for the betterment of the citizenry.

Magaji disclosed this during an oversight visit of members of his committee to the Federal University of Health Sciences Teaching Hospital, Otukpo.

He stressed the need to allocate more funds in health sector, considering the primary responsibility of health institutions in the country.

Magaji appreciated the Chief Medical Director, CMD, and his management staff for showing interest in the growth of the teaching hospital, considering the tremendous achievements recorded within a period of one year.

He assured that he would work with his members to ensure that more funds are made available to develop the needed infrastructure including the medical equipment to meet up with the expectations of the people.

“We are glad to be in Otukpo today to see things for ourselves. We don’t want to depend on second hand information on the true condition of the Federal University Teaching Hospital Otukpo,” he said.

He assured the management of full support of the Federal House of Representatives as appropriate incentives would be given through interface with other critical stakeholders in Abuja.

The committee chairman enjoined the staff, whom he described as foundation staff to work as team despite the working condition, “we have seen how the environment is looking and we will continue to monitor the progress.

“So, as foundation staff, you all have the opportunity to write your name in gold.”

While welcoming the committee, the CMD, Prof Silas Ochejele, appreciated the federal government for the establishment of the teaching hospital in Otukpo which has drastically changed the medical services narratives in the state.

Ochejele thanked the House of Representatives Committee on Health Institutions for the pains to come down to Otukpo and believed that the visit has made them to see things themselves, which would go a long way in repositioning the hospital for the betterment of the people.

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JUST IN: Helicopter carrying Iran’s President crashes

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A helicopter carrying Iranian President, Ebrahim Raisi, has been involved in an incident while he was visiting neighbouring Azerbaijan, Iran’s semi-official Tasnim news agency reported on X on Sunday according to CNN.

“Some of the president’s companions on this helicopter were able to communicate with Central Headquarters, raising hopes that the incident could have ended without casualties,” it added.

It is unclear what the exact status is of Raisi’s helicopter, CNN reports.

The helicopter was part of a convoy of three helicopters. Two of those helicopters were carrying ministers and officials who arrived at their destination safely, according to Tasnim.

“Seyyed Mohammad-Ali Al-Hashem, Tabriz’s Friday Prayer Imam, and Foreign Minister Hossein Amirabdollahian were also reportedly on the helicopter with the president,” Tasnim said on X. BREAKING: Helicopter carrying Iran’s President involved in an accident

A helicopter carrying Iranian President, Ebrahim Raisi, has been involved in an incident while he was visiting neighbouring Azerbaijan, Iran’s semi-official Tasnim news agency reported on X on Sunday according to CNN.

“Some of the president’s companions on this helicopter were able to communicate with Central Headquarters, raising hopes that the incident could have ended without casualties,” it added.

It is unclear what the exact status is of Raisi’s helicopter, CNN reports.

The helicopter was part of a convoy of three helicopters. Two of those helicopters were carrying ministers and officials who arrived at their destination safely, according to Tasnim.

“Seyyed Mohammad-Ali Al-Hashem, Tabriz’s Friday Prayer Imam, and Foreign Minister Hossein Amirabdollahian were also reportedly on the helicopter with the president,” Tasnim said on X.

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