TETFund, NEITI sign MoU to strengthen education tax collection
By Uji A. Iliyasu, Abuja
The Tertiary Education Trust Fund (TETFund) and the Nigeria Extractive Industries Transparency Initiative (NEITI) have signed a Memorandum of Understanding (MoU) to enhance data sharing and transparency, aimed at boosting remittances to TETFund from the extractive sector.
Speaking at the signing ceremony in Abuja on Monday, TETFund Executive Secretary,% Sonny Echono, said the agreement would deepen accountability in the oil, gas, and other extractive industries, while aligning with President Bola Tinubu’s Renewed Hope Agenda.
“This will ensure accountability, particularly in the extractive sector. It will ensure that taxes due to TETFund are paid and outstanding amounts recovered. It’s crucial to boosting our revenue so we can realise the President’s goal of revitalising our tertiary institutions,” Echono said.
He added that the partnership would establish a framework for obtaining accurate, up-to-date data, critical for effective tax collection.
Echono noted that while TETFund is committed to prudent spending, it is also focused on strengthening its revenue base. “We’re looking at how to generate more income, expand the tax net, and improve collection efficiency,” he stated.
He revealed that the creation of a Department of Revenue and Investment, approved by TETFund’s Board of Trustees, has significantly improved revenue performance.
“We now have officers in all our zonal offices working with the Federal Inland Revenue Service (FIRS) to ensure compliance. They verify if companies are paying the correct amount and identify those that are defaulting, particularly those operating offshore,” he explained.
Regarding the ongoing tax reforms, Echono clarified that while certain terminologies—such as replacing “education tax” with “development levy”—may change, the financial mechanism remains intact.
“TETFund will still be entitled to 50% of that development levy. The same procedures and parameters will apply, and this MoU will provide a robust framework for monitoring compliance,” he added.
NEITI Executive Secretary, Dr. Orji Ogbonnaya Orji, described the MoU as both timely and significant, highlighting its role in ensuring that revenues from natural resources are managed transparently and used effectively.
“NEITI and TETFund share a common goal: to ensure that revenues derived from Nigeria’s natural resources are transparently managed and efficiently deployed for national development, poverty reduction, and educational advancement,” Orji said.
He disclosed that TETFund received approximately ₦1.024 trillion in revenue accruals between 2019 and 2023, primarily from the extractive sector. However, he noted a distinction between accruals and actual remittances.
“In 2022, revenue accruals stood at ₦322.99 billion, rising to ₦571.01 billion in 2023—the highest on record. From 2019 to 2021, accruals totalled ₦644.19 billion, with ₦624.32 billion disbursed. These figures underscore the extractive sector’s vital role in funding tertiary education,” he said.
Orji added that these funds are drawn from profits of companies in oil, gas, mining, manufacturing, telecoms, banking, and other sectors—many of which are under NEITI’s audit coverage.
He stressed that no country has achieved prosperity by simply exporting crude resources. “By supporting tertiary education, research, and innovation, TETFund is transforming finite mineral wealth into infinite human capital,” he said.
Under the MoU, NEITI will support TETFund by providing timely, evidence-based data and real-time revenue information. This collaboration will ensure prompt remittances and enhance tracking of payments and utilisation.
“Our joint efforts will uplift educational institutions, widen scholarship access, and strengthen research capacity across public tertiary institutions,” Orji said.
Also present at the event was Permanent Secretary of the Federal Ministry of Education, Abel Olumuyiwa Enitan, who commended the initiative as a strategic step towards sustainable development.
“This is a welcome development. Education is the bedrock of national progress, and with limited government resources and increasing demands, this MoU ensures that potential revenue is identified, properly tracked, and used effectively.
“The Ministry supports and applauds this move, especially its emphasis on transparency. It will benefit both present and future generations,” Enitan stated.
The partnership is expected to play a crucial role in enhancing the integrity of education tax administration and ensuring that Nigeria’s natural resources are harnessed to support national development through education.