A fresh debate has emerged over Nigeria’s higher education funding, with calls for private universities to be included in TETFund interventions. Proponents cite their growing contributions to national development, while public university unions argue the fund was meant to address decades of neglect in public institutions, writes DEBORAH TOLU-KOLAWOLE
A renewed debate over the funding of Nigeria’s tertiary education system has reignited calls for the inclusion of private universities in Tertiary Education Trust Fund interventions, with stakeholders sharply divided over whether the policy should be revised.
Some academics and education policy experts argue that private universities deserve access to the fund due to their growing contributions to national development, while labour unions representing public university staff maintain that the intervention was originally designed to address decades of neglect in publicly owned institutions.
Although this controversy has persisted for over two decades, recent increases in TETFund revenue and the rapid expansion of private universities have intensified the discussion.
Established under the TETFund Act of 2011, the fund provides supplementary financing for public tertiary institutions across Nigeria, including federal and state universities, polytechnics, and colleges of education. The fund is primarily financed through a statutory education tax of two per cent on the assessable profits of companies operating in Nigeria, collected by the Federal Inland Revenue Service.
Despite their growing role in the sector, private universities remain excluded from the intervention. Nigeria now has more than 250 universities, with private institutions accounting for the largest share following a surge in licensing by the National Universities Commission in recent years. Proprietors and administrators of private universities have repeatedly argued that their exclusion represents a structural imbalance in the nation’s higher education financing system.
The debate has been further fueled by the increasing volume of education tax accruing to TETFund. Data from the Nigeria Extractive Industries Transparency Initiative show that the fund received about N1.024tn between 2019 and 2023 from education tax contributions across various sectors. Audit figures indicate that TETFund collected N322.99bn in 2022 and a record N571.01bn in 2023, marking its highest annual inflow since inception.
The bulk of these funds comes from companies in industries such as oil and gas, manufacturing, telecommunications, banking, and mining. The growing inflow has prompted some stakeholders to question whether the existing framework should be expanded to include other categories of tertiary institutions.
Recently, the Vice-Chancellor of Chrisland University, Professor Oyedunni Arulogun, and the Chancellor of Lead City University, Professor Gabriel Ogunmola, renewed calls for the extension of Tertiary Education Trust Fund (TETFund) interventions to private universities. They made the appeal at a colloquium held in honour of Professor Jide Owoeye on his 70th birthday, where stakeholders discussed the evolving role of the private sector in Nigeria’s higher education system.
Speaking on the theme, “Intervention Opportunities in Higher Education – Is the Private Sector Left Out?”, Arulogun argued that if higher education is truly the engine of national transformation, funding mechanisms must be inclusive.
“If higher education is the engine of national transformation, intervention must be designed to serve all — both public and private universities,” she said. She emphasized that private universities contribute significantly to access, infrastructure development, and manpower training, yet remain excluded from funding that could strengthen research, innovation, and quality assurance. Arulogun added that extending TETFund support to accredited private institutions would enhance research output, improve facilities, and reduce pressure on public universities overwhelmed by rising enrolment.
Corroborating her stance, Ogunmola said education funding should prioritise national interest over ownership structures. “The money must serve the interest of all, both private and public universities,” he stated, stressing that sustainable national development requires strengthening the entire tertiary ecosystem. He noted that many private universities meet regulatory standards yet operate with limited access to intervention funds, and that inclusion would promote competitiveness and elevate overall academic quality.
Speaking to The , former Executive Secretary of the National Universities Commission, Professor Peter Okebukola, said the demand was not new, tracing back to the early 2000s when private universities first sought assistance from the former Education Trust Fund.
“My straightforward answer is ‘yes’. Of course, this will require an amendment to the TETFund law,” he said. “In 2003, two years into my tenure at NUC, proprietors and management of private universities made repeated representations to the then Education Trust Fund seeking support similar to that provided public universities. This push has not abated; in fact, it has intensified over the past decade.”
Okebukola explained that the case for inclusion rests on three pillars: equity, relevance, and historical precedent. He highlighted the equity argument, noting that TETFund’s revenue is largely derived from taxes paid by private sector companies.
“What TETFund collects comes mainly from the private sector — the goose that lays the golden egg enjoyed by public universities. Equity demands that private universities should also benefit. Currently, it is a classic case of ‘monkey dey work, baboon dey chop.’ If the private sector contributes to the fund, private universities should share in its benefits alongside public institutions,” he said.
He further pointed out that graduates of private universities contribute to the Nigerian economy just as their counterparts from public institutions do.
Okebukola also highlighted the growing influence of private universities in shaping Nigeria’s human capital.
“Graduates of private universities make significant contributions to the economy and society. Pan-Atlantic University graduates are in high demand across management sectors; Lagos Business School’s MBA programme ranks among less than two per cent globally with dual accreditation from AACSB and the Association of MBAs. Covenant University, Afe Babalola University, Redeemer’s University, Babcock University, Crawford University, and Bells University of Technology are producing graduates who are shaping commerce, technology, and public service nationally and globally.”
He argued that extending TETFund support would further enhance these institutions’ capacity to contribute to national development. Okebukola proposed several models for inclusion, such as applying the same funding formula used for public universities, performance-based funding tied to research and graduate output, differentiated funding formulas, eligibility restricted to financially stable institutions, or long-term low-interest loans through the fund.
“Whatever model is adopted, one thing is clear: the continued exclusion of private universities from TETFund intervention is neither equitable, historically defensible, nor in the national interest. The time for an amendment to the TETFund Act is now,” he concluded.
The first female Vice-Chancellor of Gregory University Uturu, Abia State, Professor Cele Njoku, also urged the federal government to extend TETFund interventions to private tertiary institutions. She argued that since private institutions complement government efforts by providing opportunities for citizens to pursue higher education amid limited vacancies in public universities, they should not be excluded from the fund.
Professor Njoku noted that TETFund has played a critical role in bridging infrastructural gaps in public tertiary institutions. She emphasized that extending similar support to private universities is now imperative and would serve the broader interests of society.
However, the Academic Staff Union of Universities (ASUU) has consistently opposed the proposal. The union maintains that TETFund was created specifically to address decades of underfunding and infrastructural decay in public universities. ASUU leaders argue that private universities are profit-driven ventures established by individuals, corporate entities, or religious organizations, and therefore should not benefit from public education taxes.
Union officials have also warned that diverting a portion of TETFund to private universities could further weaken already struggling public institutions. Over the years, ASUU has insisted that the federal government should instead increase direct budgetary allocations to public universities rather than dilute the existing intervention framework. According to the current ASUU president, Professor Chris Piwuna, TETFund — popularly regarded as the union’s brainchild — was established as a lifeline for public institutions that rarely receive sufficient government attention.
Concerns over infrastructure gaps
Nigeria’s public universities continue to face challenges, including poor infrastructure, overcrowded lecture halls, and inadequate research funding. Many campuses rely heavily on TETFund projects for buildings, laboratories, research grants, and staff development programmes. The fund has financed thousands of projects across federal and state institutions, including lecture theatres, hostels, libraries, laboratories, and academic training programmes. Experts note that without such interventions, the infrastructural deficit in Nigeria’s public tertiary institutions would be far worse.
Analysts say the debate highlights a broader challenge in Nigeria’s higher education financing model. Private universities have become a significant component of the system, helping to absorb the growing demand for university admission. Yet public universities remain the backbone of the nation’s research and training ecosystem, producing the majority of graduates.
Education policy analysts suggest that any move to extend TETFund support to private universities must be carefully structured to avoid undermining public institutions. Some have proposed creating a separate intervention window for private universities, focusing on research collaboration, innovation, and staff development.
The Director of Policy at Reform Education Nigeria, Ayodamola Oluwatoyin, emphasized the need for a sustainable funding model. “Whether public or private, there is a need for a sustainable funding model. Institutions must be able to think inwards when it comes to matters of funding,” she said.