EDUCATION TAX DECREE (NOW TERTIARY EDUCATION TRUST FUND ACT)
Act · Education
Policy date: 2011-01-01
An Act imposes a 2% tax on companies' assessable profits to support tertiary education. It targets companies paying income tax and channels funds to universities and colleges via the Tertiary Education Trust Fund. This ensures ring-fenced funding for educational development.
EDUCATION TAX DECREE (NOW TERTIARY EDUCATION TRUST FUND ACT)
What Is This Policy?
The original decree imposing a 2% education tax on the assessable profits of all companies in Nigeria, now administered by the Tertiary Education Trust Fund (TETFund) which continues the levy under an updated statutory framework.
Who Does It Target?
All companies paying Companies Income Tax in Nigeria Federal Inland Revenue Service (FIRS) collecting the levy TETFund as the disbursing body (successor) Universities, polytechnics, and colleges of education
What Does It Aim to Achieve?
Generate dedicated, ring-fenced funding for tertiary education institutions through a statutory levy on corporate profits, supplementing the annual government budget for education.
Key Features
2% Education Levy: Imposes a 2% tax on the assessable profits of all companies, payable alongside CIT. Dedicated Fund: Revenue goes directly to TETFund for allocation to tertiary education institutions. Institutional Distribution: Funds shared among universities, polytechnics, and colleges of education for capital projects. Accountability: TETFund publishes annual reports on collection and disbursement to institutions.
Current Status
Rollout Stage: Superseded — TETFund Act 2011 now governs; the 2% levy continues Coverage: All companies in Nigeria Beneficiaries: Tertiary education institutions; students Funding: 2% corporate profit levy
How to Access
Companies remit the 2% education tax with CIT returns through FIRS Tertiary institutions apply to TETFund for project funding allocations Application method: Pay levy to FIRS; institutions apply at https://www.tetfund.gov.ng
Important Terms
The 2% levy continues under the TETFund Act 2011 TETFund funds must be used for approved capital projects only Non-payment of the education levy attracts the same penalties as CIT default
Official Resources
Website: https://www.tetfund.gov.ng Contact: Tertiary Education Trust Fund (TETFund) / FIRS
Legal Framework
The Education Tax Decree (now the Tertiary Education Trust Fund Act 2011) was originally enacted as a Military Decree and is recognized under Section 315 of the 1999 Constitution as an existing law. The TETFund Act 2011 provides the current statutory basis, operating under the Companies Income Tax Act (on the 2% education levy), the 1999 Constitution (Third Schedule — TETFund as a federal executive body), and the National Universities Commission Act.