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TETFund: Senate seeks increase in companies tax remittance to boost research

The Senate Committee on Tertiary Institutions and Tertiary Education Trust Fund, (TETFund) has advocated an increase in tertiary institutions tax from 2.5 percent to 3 percent to improve research and development in the country.

The Chairman of the committee Senator Ahmed Baba Kaita stated this during its oversight visit to TETFund, on Wednesday, in Abuja to ascertain the level of the 2021/ 2022 performance of budget.

Senator Kaita said the fund’s 2.5 per cent education tax paid from accessible profit of companies registered in Nigeria has had a massive and sustained impact on improving tertiary education in Nigeria through several interventions.

The Committee maintained that Education and Health sectors are two critical sectors that drive development hence the need for an upward review from 2.5 percent education tax to three percent.

To this end, the delegation hoped that in the next Assembly the tax would be increased to three per cent.

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.

The Executive Secretary of TETFund Sonny Echono expressed gratitude to the National Assembly for considering the passing of the Finance Act last year which resulted in to increase in 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, and promoting research and innovation.

According to him, in 2021, TETFund disbursed N213bn to tertiary institutions, this included the take-off grants for the establishment of new institutions.

Reporting by Daniel Adejo; Editing by Abdullahi Lamino