TETFund Receives ₦1.024 Trillion from Extractive Sector Education Tax Over Five Years
The Tertiary Education Trust Fund (TETFund) has revealed that it received a total of ₦1.024 trillion in education tax contributions from the extractive sector over the last five years, marking a significant investment into Nigeria’s tertiary education system.
The Executive Secretary of TETFund, Sonny Echono, disclosed this during a strategic engagement with stakeholders in Abuja. He attributed the substantial revenue to consistent remittances from companies operating in the extractive industries—primarily oil, gas, and solid minerals—under the guidance of the Federal Inland Revenue Service (FIRS).
According to Echono, the ₦1.024 trillion was generated between 2019 and 2023, forming a major part of the fund’s revenue stream. He emphasized the importance of the education tax, which stands at 2.5% of assessable profit, in driving infrastructure development, research funding, and academic staff training across public tertiary institutions in Nigeria.
“This contribution from the extractive sector is a game-changer for the education sector,” Echono stated. “It shows that with proper collaboration between government agencies and compliance from companies, we can sustainably fund critical areas like education.”
The Executive Secretary of the Nigeria Extractive Industries Transparency Initiative (NEITI), Dr. Ogbonnaya Orji, also lauded the milestone, emphasizing the role of transparency and accountability in tax collection and utilization. He called for enhanced collaboration between NEITI, TETFund, and the FIRS to ensure continued growth in education tax contributions from the sector.
Dr. Orji further encouraged extractive companies to see education tax not as a burden but as a national responsibility that directly impacts the future of Nigeria's workforce.
The education tax is a key component of NEITI’s Extractive Industry Value Chain, and TETFund serves as a central channel for utilizing these funds for the betterment of Nigeria’s public tertiary education institutions.
As Nigeria continues to grapple with underfunding in its education sector, the role of extractive sector contributions through TETFund is becoming increasingly pivotal in closing the funding gap and improving educational outcomes nationwide.
