Business
What The Education Tax Is Doing in Nigeria’s Public Tertiary Institutions
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% 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% (Tertiary education); 25% (polytechnics) and 25% (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 eleven (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% (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.
Written by Aisha Attahiru Jega
Business
Union Bank’s Union Cares Initiative Celebrates Academic Excellence at Pacelli School for the Visually Impaired Graduation
Union Bank of Nigeria proudly participated in the graduation ceremony of the Pacelli School for the Visually and Partially Sighted on 23 July 2025, honouring the resilience and academic achievements of visually impaired students.
The event, held on the school premises, highlighted the importance of inclusivity and determination in education.
As a 108-year-old institution committed to social responsibility, Union Bank’s involvement reflects its enduring support for Persons With Disabilities (PWD) and its dedication to fostering equitable access to education.
The Bank’s Chief Brand and Marketing Officer, Olufunmilola Aluko, expressed her admiration for the graduating students:
“Union Bank proudly stands as a champion of inclusiveness and equitable representation. Through our UnionCares corporate social responsibility initiative, we are committed to supporting vulnerable and underrepresented communities.
We celebrate the incredible achievements of these students and reaffirm our dedication to empowering them to reach their full potential.”
UnionCares is Union Bank’s CSR Arm focused on creating sustainable social impact in key areas, including:
• Support for Vulnerable Groups: Empowering persons with disabilities and other marginalised communities through inclusive initiatives.
• Education and Skill Development: Facilitating access to education and practical skills that promote self-reliance and opportunity.
• Community Well-Being: Enhancing the overall quality of life of communities through health, education, and social welfare projects.
Union Bank remains honoured to collaborate with institutions dedicated to uplifting less-recognised members of society. The Bank remains dedicated to championing initiatives that inspire positive change, and foster a more inclusive, enlightened community across Nigeria.
Kevin Ugwuoke, Executive Director and Chief Risk Officer of Fidelity Bank Plc, has formally assumed office as President of the Chartered Risk Management Institute of Nigeria (CRMI).
His leadership promises a reform-focused era anchored on policy advocacy, ethical standards, and digital innovation to deepen risk governance across sectors in the country.
Speaking during the presidential handover ceremony in Lagos over the weekend, Ugwuoke — who also doubles as acting President of the Federation of African Risk Management Associations (FARMA) — described his election as “a call to action.”
He pledged to reposition CRMI as a thought leader and institutional partner in shaping the future of risk management in Nigeria’s national development.
“Our mission is more than just certification; it’s about strengthening the culture of risk governance across sectors. We will collaborate with regulators, raise awareness, and provide practical tools to help organizations embed risk discipline at all levels.”
Ugwuoke outlined a five-pronged strategy to guide his administration: strengthening professional education and certification; deepening policy and regulatory engagement; accelerating digital transformation; integrating ESG and climate risk into corporate strategies; and mentoring the next generation of risk practitioners.
He explained that CRMI will align its initiatives with key policy institutions — including the Nigerian Economic Summit Group, the National Assembly, and sub-national governments — to help embed robust risk frameworks into economic development plans.
“We must integrate risk thinking into how we plan, govern, and invest. We will advocate for more inclusive regulations to empower small and medium enterprises, improve macroeconomic stability, and foster institutional resilience.”
Ugwuoke also announced plans to revise the Institute’s curriculum, introduce specialized certifications to reflect emerging risks, and implement a new National Risk Observatory to provide real-time risk data to both the public and private sectors.
“Digital innovation will be central to how CRMI operates going forward. We are automating our backend, delivering more virtual training, and employing technology to scale our impact across the country and beyond.”
In his remarks, the outgoing President of CRMI, Ezekiel Oseni, challenged the new leadership to consolidate on the achievements made under his tenure — from securing chartered status and strengthening partnerships to gaining greater international recognition — and take the Institute to the next level.
Also speaking on the occasion, Chukwuma Nweke, deputy managing director of United Bank for Africa (UBA), delivering a goodwill message on behalf of Group Managing Director, Oliver Alawuba, described Ugwuoke as a worthy successor. “As Professor Oseni hands over the baton to Kevin Ugwuoke — a well-respected leader in the risk management ecosystem — we are assured CRMI is poised for greater achievements under his watch.”
Nweke stressed that growing economic uncertainties — from inflation and exchange rate volatility to growing debt — underscore the need for a more strategic view of risk. “Risk must be recognized not as a compliance obligation or a cost center but as a key enabler of resiliency and growth. Institutions that embed risk into their strategies will absorb shocks more effectively, unlock value, and inspire investor confidence.”
As part of the day’s ceremonies, 11 distinguished practitioners were conferred with the Fellow of Chartered Risk Manager (FCRMI) award, while 21 new members were formally inducted as Chartered Risk Managers (CRM).
Furthermore, a new Governing Council was inaugurated to oversee the affairs of the Institute for the 2025–2027 term, marking a decisive step forward in institutional renewal and policy direction.
L-R: Registrar/Chief Executive, Chartered Risk Management Institute of Nigeria (CRMI), Victor Olannye; Divisional Head, Risk Management Securities and Exchange Commission (SEC), Grace Abioye; Immediate Past President, CRMI, Ezekiel Oseni; President, CRMI and Executive Director/Chief Risk Officer, Fidelity Bank Plc, Kevin Ugwuoke; Director, Enterprise Risk Management, Nigeria Deposit Insurance Corporation (NDIC), Amal Haruna; and Rep. Keynote speaker, Deputy Group Management Director, United Bank of Africa (UBA), Chukwuma Nweke; at the CRMI Conferment Handover/Sent-Forth ceremony, held in Lagos recently.
One of Africa’s leading financial institutions, Zenith Bank has reaffirmed its dedication to employee welfare by announcing the promotion of over 4,000 staff members and implementing salary increases ranging from 20% to 30% across various employee grades.
This bold initiative, under the leadership of Managing Director/CEO Dame Adaora Umeoji, its aimed at boosting staff morale and productivity.
With over 8,000 employees, this significant investment in human capital reflects Zenith Bank’s belief that its workforce is its most valuable asset. The salary adjustments, effective January 1, 2025, aim to reward performance, alleviate financial pressures, and ensure enhanced customer service delivery. Promotions for top management are also expected as part of the bank’s ongoing commitment to excellence and growth.
Dr. Umeoji emphasized the importance of maintaining a motivated workforce, stating that the bank’s dedication to its employees will translate into superior service experiences for customers. She highlighted the organization’s commitment to setting industry benchmarks through innovative solutions and exceptional service delivery.
Zenith Bank’s continued leadership in the Nigerian financial sector is underscored by numerous awards, including Best Bank in Nigeria 2024 by Global Finance and recognition as the Biggest Bank in Nigeria by Tier-1 Capital in 2024 by The Banker. These accolades complement its reputation for innovation, sustainability, and corporate governance.
By prioritizing employee welfare during challenging times, Zenith Bank not only strengthens its internal operations but also sets a standard for other financial institutions in the region, reinforcing its position as a leader in Africa’s banking landscape.
As a major player in Nigeria’s financial landscape, under its managing director/chief executive officer, Adaora Umeoji, the bank has embraced a holistic approach to growth that integrates environmental, social and governance (ESG) principles with its core business objectives.
At the heart of Zenith Bank’s strategy is a focus on buoying economic inclusion, supporting small and medium-sized enterprises (SMEs) and driving technological innovation to enhance customer experiences. The bank’s proactive investments in renewable energy, sports, digital transformation and impactful community initiatives exemplify its dedication to creating long-term value for its stakeholders while addressing global sustainability challenges.
Zenith Bank’s continued success is driven by a combination of strong financial performance and an unwavering commitment to its stakeholders.
Zenith Bank’s growth trajectory is underpinned by a robust expansion strategy. With operations in several countries, including the UK, UAE, China, and most recently, France, the bank continues to expand its geographical footprint.
As usual, the bank’s efforts in 2024 did not unnoticed as the lender clinched several local and international awards in recognition of its outstanding performance.
In 2024, the bank won the Best Bank in Nigeria at the annual Global Finance award in Washington, DC, NY.
The bank also emerged the Biggest Bank in Nigeria by Tier-1 Capital, 2024 by The Banker; Best Commercial Bank, Nigeria 2024 – World Finance; Best Corporate Governance, Nigeria 2024 – World Finance; Most Sustainable Bank, Nigeria 2024 – International Banker; Bank of the Year, 2024 – Business Day; Retail Bank of the Year, 2024 – Business Day; Bank of the Year 2024- The Banker.
It also clinched the Most Responsible Organization in Africa 2024 – SERAS; Best in Gender Equality & Women Empowerment 2024 – SERAS and Best in Transparency & Reporting 2024 – SERAS
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