The Senate Committee on Tertiary Institutions and Tertiary Education Trust Fund (TETFund) has said there is a need to increase tertiary institutions’ tax from 2.5 per cent to three per cent to improve research and development in the country.
Ahmed Baba Kaita, chairman of the Committee, made this submission during its oversight visit to TETFund to ascertain the level of 2021/ 2022 performance of the budget on Wednesday.
Explaining the reason for the oversight visit, the Committee chairman said, ” Upon the enactment of the 2022 Appropriation Act, the Senate of the Federal Republic of Nigeria resolved that Committees should embark on oversight visits on MDAs under their jurisdiction. Following the above, the Committee commenced this oversight with the main Ministry and today TETFund.”
“The fund 2. 5 per cent education tax paid from accessible profit of companies registered in Nigeria has had a massive and sustained impact on the improving tertiary education in Nigeria through several interventions.”
Describing the Executive Secretary of TETFund, Arc. Sonny Echono as Performer extraordinary, the committee expressed hope that Echono would replicate the same vision and mission of transforming the education sector he had while serving as the Permanent Secretary of the ministry in TETFund.
Kaita maintained that Education and Health sectors are two critical sectors that drive development hence the need for an upward review from 2.5percent education tax to three per cent.
To this end, the delegation hoped that the tax would be increased to three per cent in the third Assembly.
Also, while expressing his satisfaction over the reforms and excellent performance of TETFund for the year under review, the Chairman of the Committee used the opportunity to appeal to the Fund to incorporate the Mathematical Centre in its interventions, saying that no country can thrive in the area of, research, science, technology, and innovation without embracing mathematics.
Kaita also urged TETFund to expedite efforts in providing Oxygen generators requested by Kaduna State Polytechnic during COVID- 19 in 2020.
Also, Senator Chukwuka Utazi, a member of the Committee, commended Echono for the robust interventions carried out so far and called on intellectuals to provide a home answer to the COVID-19 response.
” Nigeria is not an inferior country; if research is fully funded, there will be much results from academia in providing COVID- 19 response,” he said.
Utazi also called for entrenching of entrepreneurship in Nigerian universities.
Speaking earlier, Sunny Echono, the Executive Secretary of TETFund appreciated the Committee for its usual support, saying that the harmony between the National Assembly and Education Sector was highly responsible for achievements recorded in the sector since the past seven years.
He expressed gratitude to the National Assembly for considering the passing of the Finance Act last year, which resulted in an increase in the education tax percentage to 2.5, adding that it was done on consultation and shared acceptance of the need to increase funding and investment in education.
The Executive Secretary explained that TETFund engages in establishing, revitalising and support of benefiting tertiary institutions, which are classified as Universities, Polytechnics and Colleges of Education in the area of infrastructure, training and development of academic staff, promoting research and innovation.
He said in 2021, TETFund disbursed N213bn to tertiary institutions. This, according to him, included the take-off grants for establishing new institutions.
” When the federal government establishes new institutions, TETFund is requested to disburse take-off grant. 60percent of this disbursement goes to the universities,” he said.
