TETFund Amendment Bill Summary

What Is This Bill?

The Tertiary Education Trust Fund Act (Amendment) Bill, 2025 (HB. 2047) proposes amendments to the Tertiary Education Trust Fund (Establishment, Etc.) Act No. 16 of 2011 — the principal legislation governing Nigeria’s foremost tertiary education intervention agency. The Bill seeks to expand the institutional scope and funding reach of TETFund by broadening the definition of eligible beneficiary institutions, reforming the tax imposition and collection framework in alignment with recent Finance Act amendments, and strengthening governance and accountability mechanisms. It is one of several concurrent TETFund-related amendments in the 10th National Assembly aimed at closing exclusion gaps and modernising the Fund’s legal architecture to reflect the current structure of Nigeria’s tertiary education landscape.

Who Does It Target?

Public tertiary institutions — universities, polytechnics, and colleges of education — currently benefiting from TETFund interventions Monotechnics and specialised single-discipline institutions currently excluded from TETFund’s statutory beneficiary list Inter-University Centres established by Acts of the National Assembly, including the National Mathematical Centre and the National Institute for Nigerian Languages The Federal Inland Revenue Service (FIRS), which assesses and collects the education tax on behalf of the Fund The TETFund Board of Trustees and executive management responsible for administering, managing, and disbursing the Fund Companies registered in Nigeria subject to the education tax / development levy imposed under the Act Academic and non-academic staff of public tertiary institutions who benefit from TETFund-financed training and capacity-building programmes

What Does It Aim to Achieve?

Expand the statutory definition of eligible TETFund beneficiary institutions to include monotechnics and other excluded categories of public tertiary education providers Align the TETFund Act with Finance Act 2021 and Finance Act 2023, which raised the education tax rate from 2% to 2.5% (2021) and further to 3% (effective September 2023) of assessable company profits Extend TETFund intervention coverage to inter-university centres — nationally established academic institutions that serve the entire university system but have been omitted from the funding framework Strengthen the governance, accountability, and disbursement mechanisms of the Fund to improve transparency and delivery at institutional level Ensure equitable distribution of TETFund resources across all geopolitical zones and institution types, consistent with the Fund’s mandate of rehabilitation, restoration, and consolidation of tertiary education

Key Features

Expanded Beneficiary Scope: Proposes amendment of the Act’s definition of ‘tertiary institution’ to explicitly include monotechnics and other currently excluded institution categories as eligible recipients of Fund disbursements Tax Rate Harmonisation: Aligns the Act with Finance Act 2023, which increased the education tax / development levy to 3% of assessable profits of all registered companies in Nigeria, excluding small companies and non-resident companies Inter-University Centre Inclusion: Companion bill HB. 1754 (Deputy Speaker Kalu et al.) addresses inclusion of Inter-University Centres such as the National Mathematical Centre and Nigerian French Language Village as TETFund beneficiaries Disbursement Ratio Review: The existing distribution ratio of 2:1:1 among Universities, Polytechnics, and Colleges of Education is subject to review to accommodate newly included institution types under the amended Act Governance Reforms: Proposes strengthened reporting, oversight, and accountability provisions for the Board of Trustees, including updated quorum requirements and meeting obligations Institutional Equity: Ensures that specialised, single-discipline institutions — particularly those contributing to forestry, agriculture, environment, and sciences — can access TETFund infrastructure and research grants

Current Status

Legislative Stage: First Reading in the House of Representatives on 6 February 2025 (Order Paper No. 99, 10th National Assembly, Second Session); referred for further progression through Committee and Second Reading Companion Bill: A related bill, HB. 1991 (Hon. Abdulmalik Zubairu), specifically proposing inclusion of Monotechnics as tertiary institutions under the Act, passed Second Reading in the same session on the same date Inter-University Bill: HB. 1754, sponsored by Deputy Speaker Benjamin Kalu and eight co-sponsors, proposing inclusion of Inter-University Centres as TETFund beneficiaries, passed Second Reading in May 2025 and was referred to the Committee on TETFund Tax Reform Alignment: The Nigeria Tax Act 2025 — signed into law on 26 June 2025 — consolidates the education levy into a unified 4% Development Levy, with TETFund allocated 50% of proceeds; the Amendment Bill must be read alongside these reforms Senate Commitment: Senator Yunus Akintunde (Oyo Central) formally pledged on the floor of the Senate in October 2024 to table the monotechnic inclusion issue for consideration, following advocacy by the Federal College of Forestry, Ibadan Funding Context: TETFund has disbursed billions annually since 2011; the Finance Act 2023 tax increase to 3% significantly expanded the Fund’s revenue base ahead of the expanded scope proposed by this Bill

How to Access

Public Tertiary Institutions: Continue applying for TETFund intervention grants through the standard annual needs-based assessment process managed by the Board of Trustees; await expanded eligibility criteria post-enactment Monotechnics: Upon enactment, newly eligible institutions must register with TETFund and submit project proposals for infrastructure, research, and staff development funding in line with Board guidelines Inter-University Centres: Following passage of HB. 1754, centres such as the National Mathematical Centre should formally engage TETFund to access intervention funding for research and academic programmes Companies / Taxpayers: Continue paying the education tax / development levy through FIRS; the Finance Act 2023 rate of 3% applies; TETFund receives 50% of the consolidated Development Levy under the Nigeria Tax Act 2025 Legislative Tracking: Track bill progression via the National Assembly website (nass.gov.ng); engage the House Committee on TETFund for submissions during public hearing stage Contact: Tertiary Education Trust Fund — No. 6 Zambezi Crescent, Off Aguiyi Ironsi Street, Maitama, Abuja | tetfund.gov.ng | House Committee on TETFund: nass.gov.ng

Important Terms

TETFund: Tertiary Education Trust Fund — Nigeria’s statutory intervention agency established under Act No. 16 of 2011 to provide supplementary funding for public tertiary institutions via education tax proceeds Education Tax / Development Levy: A statutory levy imposed on the assessable profits of companies registered in Nigeria; currently consolidated at 4% under the Nigeria Tax Act 2025, with 50% allocated to TETFund Monotechnic: A single-discipline, specialised tertiary institution (e.g. Federal College of Forestry) currently excluded from TETFund’s beneficiary list and a primary subject of this Amendment Bill Disbursement Ratio: The current 2:1:1 ratio distributing TETFund resources between Universities, Polytechnics, and Colleges of Education; subject to revision to accommodate newly included institution types Inter-University Centre: Institutions established by Acts of the National Assembly to serve the entire university system (e.g. National Mathematical Centre, Abuja); proposed as new TETFund beneficiaries under HB. 1754

Impact & Metrics

TETFund has been one of the most impactful institutional frameworks in Nigeria’s education sector since 2011, funding infrastructure, equipment, staff training, and research across hundreds of public tertiary institutions The Finance Act 2023 raised the education tax to 3% of assessable profits, significantly expanding TETFund’s annual revenue base; the Nigeria Tax Act 2025 further consolidates this into a 4% Development Levy with TETFund receiving 50% Monotechnics such as the Federal College of Forestry, Ibadan, have been excluded from TETFund funding for over a decade, slowing research output and infrastructure development in critical sectors including forestry, environment, and agriculture If enacted, the Amendment Bill would extend TETFund’s reach to an entirely new category of public tertiary institutions, addressing longstanding equity gaps in Nigeria’s higher education funding architecture

Official Resources

Website: tetfund.gov.ng | nass.gov.ng | firs.gov.ng Bill Reference: Tertiary Education Trust Fund Act (Amendment) Bill, 2025 — HB. 2047 — available via the National Assembly, Abuja Contact: Tertiary Education Trust Fund (TETFund), No. 6 Zambezi Crescent, Off Aguiyi Ironsi Street, Maitama, Abuja, FCT Nigeria Summary prepared using the Policy Summary Template | Source: NASS Order Paper No. 99 (6 Feb 2025), TETFund Act No. 16 of 2011, Finance Acts 2021 & 2023, Nigeria Tax Act 2025, BusinessDay, Tribune Online, Wikipedia | March 2026

Legal Framework

Introduced under the legislative powers of the National Assembly vested by Section 4 of the 1999 Constitution (as amended) as an amendment to the Tertiary Education Trust Fund (Establishment, Etc.) Act No. 16 of 2011, which is the principal statute. The education tax is collected under the Companies Income Tax Act (CITA). Aligns with the National Policy on Education, the Universal Basic Education Act, and the National Universities Commission Act.