The National President of the Academic Staff Union of Universities, ASUU, Emmanuel Osodeke, has warned against any increment in the Value Added Tax, VAT, as proposed in the controversial tax reform bills.
Speaking during an interview on Channels TV, Mr Osodeke lampooned the federal government and members of the National Assembly for supporting the bill without consulting critical stakeholders.
He said there are many things included in the bill that were not supposed to be there.
Mr Osodeke explained that a VAT increment would compound the woes of many Nigerians, who are still battling the negative effects of fuel subsidy removal and floatation of the Naira if it is increased in 2025 and subsequent years as proposed.
“I think what we’re supposed to look at in this bill is how it is going to affect the ordinary Nigerians. I’ve heard people from various regions say,
“We support this, we disagree, and what have you. Meanwhile, they have not bothered to look at the bill. I will just mention one, VAT.
“VAT is a tax on consumers, which is Nigerians. So, if you increase the VAT today, it’s not affecting producers; it’s going to affect those who are going to consume because what the producer will do is drop it on the cost of sale,” he said.
The ASUU president also cautioned the federal government against phasing out the Tertiary Education Trust Fund, TETFund, in favor of the newly introduced Nigerian Education Loan Fund, NELFUND, warning that such a move could severely damage Nigeria’s public university system.
“TETFund has been instrumental in transforming tertiary education across Nigeria for over 30 years.
“Scrapping it would devastate public universities and deny access to education for children from low-income families,” he said.
“TETFund is the product of our struggle as educators. The government cannot unilaterally decide to dismantle it without engaging those who understand its importance,” Mr Osodeke emphasised.
The lecturers’ union leader proposed that the government explore alternative funding mechanisms for NELFUND, such as allocating a percentage of Value Added Tax,VAT, rather than repurposing TETFund’s consolidated revenue from corporate taxes.
“We are not opposed to NELFUND. But the government must find a new source of funding without dismantling the existing framework that has sustained our universities,” Mr Osodeke added.
