2023: Senate Seeks 3% Hike in Companies Tax Remittance to Boost Research

Kuni Tyessi in Abuja

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

The committee made the submission during its oversight visit to TETFund to ascertain the level of the 2021/ 2022 performance of budget, on Thursday.

TETFund’s 2. 5 per cent education tax paid from accessible profit of companies registered in Nigeria has obviously had a massive and sustained impact on improving tertiary education in Nigeria through several interventions, said the Senate committee.

Describing the Executive Secretary of TETFund, Sonny Echono, as a performer extraordinary, the delegation led by its chairman, Ahmed Baba Kaita, expressed hope that Echono would replicate the same vision and mission of transforming the education sector he had while he was serving as the Permanent Secretary of the ministry in TETFund.

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 per cent education tax to three per cent.

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.

Kaita also urged TETFund to expedite action on providing an oxygen generator requested by Kaduna State Polytechnic during the COVID-19 pandemic in 2020.

In his remarks, Echono appreciated the committee for its usual support, saying that the harmony between the National Assembly and education sector was highly responsible for the achievements recorded in the sector for the past seven years.

He expressed gratitude to the National Assembly for considering the passing of the Finance Act last year which resulted in the increase in education tax percentage to 2.5, adding that it was done in 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 N213 billion to tertiary institutions.

This, according to him, included the take-off grants for the establishment of new institutions.