The Academic Staff Union of Universities (ASUU) has raised alarm over the federal government’s proposed student loan scheme, warning that it could spell the end of crucial infrastructure development in Nigeria’s tertiary institutions. According to ASUU, the government’s new push to prioritize the Nigeria Education Loan Fund (NELFund) over the well-established Tertiary Education Trust Fund (TETFund) could undermine the nation’s educational infrastructure and leave millions of students with an unreliable and untested loan scheme.
In a strongly worded statement delivered at a press briefing on Thursday, the Zonal Coordinator of ASUU, Raphael Amokaha, expressed deep concern over the Nigeria Tax Bill of 2024, which he said could lead to the abrogation of TETFund. Established in 2011, TETFund has been instrumental in the construction of lecture halls, laboratories, and student clinics across Nigerian universities, polytechnics, and colleges of education. It has also played a vital role in faculty development and the provision of teaching materials.
However, the Tax Bill seeks to replace TETFund with NELFund, a student loan scheme designed to provide loans to students for their tuition and other academic needs. While the initiative is framed as a solution to the issue of rising education costs, ASUU argues that it is far from being a viable or sustainable alternative.
“The idea of replacing TETFund with NELFund is deeply concerning,” Amokaha said. “TETFund has been crucial in the development of our universities, and it has been functioning well for the past 30 years. Now, to replace it with a scheme that is not tested and whose benefits will only reach a fraction of Nigerian students is nothing short of a disaster.”
ASUU’s warning comes after the Nigeria Tax Bill 2024 was introduced, raising the prospect of diverting TETFund’s resources to NELFund. The union has vehemently opposed this move, stating that it could lead to the destruction of the agency’s capacity to fund educational infrastructure.
Amokaha explained that the student loan scheme under the NELFund is structured in such a way that less than half of Nigerian students are likely to benefit from it. In contrast, TETFund’s mandate to develop infrastructure in universities has impacted the entire student body. “How can anyone in their right mind suggest that we abandon an institution that has served us well for an unproven loan scheme?” he questioned.
The ASUU leader also pointed out that the student loan scheme would place an unnecessary financial burden on students and their families, particularly the middle and lower classes, who would find it difficult to repay the loans after graduation. “This is a scheme that will benefit the wealthy few, leaving the majority of Nigerian students struggling to make ends meet. It’s an unfair system that we cannot support,” Amokaha added.
While ASUU acknowledges the challenges that the Nigerian education sector faces, it insists that a much-needed solution is not to dismantle TETFund, but to increase government funding for universities. “Our universities are underfunded, and we need more intervention from the government, not less,” said Amokaha. He emphasized that government funding for education should not be limited to loans but should include adequate and sustainable investment in infrastructure, research, and faculty development.
The union’s stance is grounded in the belief that TETFund is a critical tool for addressing the infrastructural deficiencies that plague Nigerian universities. Over the years, the agency has funded the construction of state-of-the-art lecture halls, modern laboratories, and student hostels, all of which have contributed to improving the learning environment in many Nigerian universities. TETFund also plays a key role in faculty training, ensuring that lecturers are continually upgraded in their fields of expertise.
“For many years, TETFund has been the backbone of our educational system. It has helped us build the physical and academic structures that our universities need to function,” said Professor Okechukwu Okoro, a senior lecturer at the University of Nigeria, Nsukka. “To strip the funding from this vital agency in favor of a poorly conceived student loan scheme is to jeopardize the future of higher education in Nigeria.”
The ASUU meeting also included an open call for the Nigerian National Assembly, particularly the leadership of the Senate and the House of Representatives, to protect TETFund from being dismantled. “We are calling on the National Assembly to intervene and ensure that TETFund continues to operate,” Amokaha said. “We cannot stand by and watch this important agency be wiped out for an idea that has not been thoroughly tested.”
Furthermore, the union warned that the proposed shift in funding priorities could make higher education even more inaccessible to Nigeria’s working class. With skyrocketing tuition fees in both public and private institutions, students and their families are already grappling with financial pressures. ASUU fears that the introduction of student loans would only exacerbate this crisis by imposing additional debt on students who are already burdened by the costs of their education.
“The government must understand that education is a right, not a privilege,” Amokaha said. “We must not allow this decision to undermine the education of our youth and future leaders.”
ASUU’s campaign to defend TETFund has already garnered significant support from various academic and political stakeholders. University administrators, faculty members, and even some students have rallied behind the union’s call to protect the agency and prevent the government from cutting off its funding. Political figures from both sides of the aisle have also spoken out against the potential harm the Nigeria Tax Bill could inflict on higher education.
While the Tax Bill continues to move through the legislative process, ASUU’s resistance is likely to increase as the union seeks to rally public opinion against the proposed changes. “We are prepared to fight for the survival of TETFund,” Amokaha concluded. “We cannot allow the government to dismantle a system that has worked for so long and replace it with something that is unproven and unreliable.”
