The House of Representatives will look into TETFUND' s use of N2.3trn in income. On Tuesday, the House of Representatives set up an ad ...
The House of Representatives will look into TETFUND's use of N2.3trn in income.
On Tuesday, the House of Representatives set up an ad hoc committee to look into how N2.3 trillion from the Tertiary Education Tax that went into the Tertiary Education Trust Fund (TETFUND) between 2011 and 2013 may have been wasted.
Tuesday, the lower legislative chamber passed the resolution during a plenary session. The vote came after Olusola Fatoba, David Fouh, and Zakari Nyanpa put forward a move to do so.
The tertiary education tax was put in place as a special business levy to fund higher education in Nigeria, including capital projects, research and development, and other things.
The Tertiary Education Trust Fund (TETFUND) was set up by the Tertiary Education Trust Fund (TETFUND) Act of 2011. The fund is in charge of collecting, managing, and distributing the tax to Nigeria's public tertiary schools.
Public companies that do business in the country have to give TETfund 2.5% of their profits as an education tax.
The Tertiary Education Trust Fund Establishment Act took the place of the Education Tax Act in 2011. This was brought up in the House on Tuesday. After that, the Finance Act of 2021 changed the rate of the Tertiary Education Tax from 2% to 2.5%.
The House said it was aware that since the Tertiary Education Trust Fund was set up in 2011, it has brought in trillions of Naira in income. But it showed that there were a lot of financial problems with how the Fund ran, how contracts were given, and how projects were done.
The House pointed out that the Standard Operating Procedure for the Fund is flawed because it doesn't have the right tools for tertiary schools to keep an eye on projects. Money is given out without enough tracking, and contractors are paid even when they don't reach the needed milestones.
According to the move, "the House further notes that these abuses, actions, inactions, and violations have led to about 2.3 Trillion Naira worth of stolen funds and unjust enrichment."
"The House is worried that the Tertiary Education System will continue to get worse if serious steps aren't taken to look into these claims.
This could lead to strikes, schools that aren't up to par, a loss of trust in the system, the brain drain of talented young people, and the collapse of the Education System as a whole. This is all because of the gross misuse of a good special intervention program and the President's desire to give young people good opportunities for tertiary education.
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