The Education Tax Fund is a Trust Fund
established under the Education Tax Act no 7 of 1993 and amended by Act No 40
of 1998 with the objective of using funding with project management to improve
the quality of education in Nigeria (ETF a Glance, Volume, 3:1).
The fund was established in the
realization that private sector as the main beneficiary of the product of
education have to take sharing the burden of its finance.
Equally, government can not shoulder the
responsibility of educational finance alone, hence
“two good heads they say is
better than one”
Peretomede (1995) identifies that the
Education Tax Degree of 1993 provides for the following:
(1) That companies are to pay 2% of their profit to the
education.
(2) That the fund is to be managed and disabused by
special tax Board of Trustees of the Federal Inland Revenue Department.
(3) That the fund would be used to finance development of
workhouse, procurement of books and library facilities, purchase and
maintenance of equipment.
(4) That 50% of the fund would go to tertiary institution.
Out of the 50% for tertiary institution, 25% would be
shared by polytechnics and colleges of education on pro rata basis. Then, the
remaining 50% of the fund would be shared among primary and post primary
institutions. Primary institution would take 2/8 of the fund.
The above features of education tax fund
not withstanding, the questions that needed to be asked and answered are; prior to the inception of
education tax fund, has there been a positive change in the Nigerian education
sector? What has been the fate of schools in Nigeria?
Education Tax Fund has a vision, which is
meaningfully stated thus;
“Education Tax Fund is a world- class public sector
agency with a solid reputation for relativity, excellence and responsiveness;
and a strong commitment to accountability, Transparency, and efficient service
delivery”.
(Education Tax Fund at a Glance (Project cycle) Volume
3:1)
Really, the above stated mission of the
fund – ETF has always reflected in all its operations. Indeed, ETF is dedicated
to his roles in the development of Nigerian education sector.
According to former minister of Education,
Prof. Fabian Obuji in Sunday Vanguard, August 24th, 2003:4,
“ETF is a pillar to the growth of education system and
has made a great impact in the system”
To further clear the doubt on the roles
of ETF New Vol. 1:6, that;
“ On the whole ETF has performed every creditably and
has certainly responded exemplarity to the yearnings
of its proponents and founding father,”
So, it is not a overstatement to state
categorically, that Education Tax Fund deserves an applause when it comes to
the roles the fund has played in the development of the Nigeria Education
sector.
Although, some schools have been against
the establishment of Education Tax Fund. As recorded in the daily champion, May
18, 200:17, a renowned economist, Prof. Sam Aluko once stated.
“My committee, the National Economic Intelligence
Committee (NEIC), looked recommended that a board like
ETF should not be set up….”
The expert advice of Aluko must have been
mesmerized by the justified roles of Education Tax Fund.
According to Peter or Agogo while reacting
to question as in an interview recently in ETF News, Vol. 1:7, stressed that
without Education Tax Fund most institutions of learning in Nigeria would have
had difficulty with funding as the states and federal government would not been
able to bear the responsibility alone. Actually, funding of education in
Nigeria would not have been easier if allowed in the hands of states and
federal government alone.
SUMMARY
Generally, the financing of education in
Nigeria experienced chequered history, as could be observed right from
pre-colonial, colonial and the postcolonial era.
Based
on the dynamic educational administration in Nigeria, many sources have been
used for the proper financing of education. And those sources could be
categorized into: Traditional and alternative sources. The traditional sources
include;
Budgetary allocation, school fees, levies
on PTA members, endowment and donations, education rate etc. while alternative
sources involve; earmarked revenue, international aid, assistance from old
students’ Association, etc.
Education
Tax Fund as one of the earmarked revenue sources and one of the loci of
education finance in Nigeria was equally treated in the revenue of related
literature.