The Tertiary Education Trust Fund (TETFund) was originally established as Education Trust Fund (ETF) by the Act No 7 of 1993 as amended by Act No 40 of 1998 (now repealed and replaced with Tertiary Education Trust Fund (Establishment, Etc.) Act No. 16 of 2011). It is an intervention agency set up to provide supplementary support to all levels of public tertiary institutions with the main objective of using funding alongside project management for the rehabilitation, restoration and consolidation of Tertiary Education in Nigeria.
The main source of income available to the Fund is the 2 percent education tax paid from the assessable profit of companies registered in Nigeria. However, the Tax was reviewed upwards to 2.5 percent by the Finance Act 2021 and further increased to 3 percent by the Finance Act 2023, effective September 2023.
The funds are disbursed for the general improvement of education in federal and state tertiary education institutions specifically for the provision or maintenance of:
- Essential Physical Infrastructure for teaching and learning;
- Instructional material and equipment;
- Research and Publications;
- Academic Staff Training and Development; and
- Any other need which, in the opinion of the Board of Trustees, is critical and essential for the improvement and maintenance of standards in the higher educational institutions.
The Fund is managed by a thirteen (13) member Board of Trustees with members drawn from the six geo-political zones of the country as well as representatives of the Federal Ministry of Education and Federal Ministry of Finance.
The Board of Trustees has the following responsibilities as stated in the Act:
- Monitor and ensure collection of Education Tax by the Federal Inland Revenue Service and ensure transfer of same to the Fund;
- Manage and disburse the Tax imposed by the Act;
- Liaise with the appropriate ministries or bodies responsible for collection or safe keeping of the Tax;
- Receive requests and approve admittable projects after due consideration;
- Ensure disbursement of funds to various public tertiary educational institutions in Nigeria;
- Monitor and evaluate execution of the projects;
- Invest funds in appropriate and safe securities;
- Update the Federal Government on its activities and progress through annual and audited reports;
- Review progress and suggest improvement within the provisions of the Act;
- Do such other things that are necessary or incidental to the objectives of the Fund under the Act or as may be assigned by the Federal Government;
- Make and issue guidelines, from time to time, to all beneficiaries on disbursement from the Fund on the use of monies received from the Fund; and
- Generally to regulate the administration, application and disbursement of monies from the Fund under the Act.
The Board of Trustees shall administer, manage and disburse the tax imposed by the Act on the basis of:
- Funding of all public tertiary educational institutions;
- Equality among the six-geo political zones of the Federation in the case of special intervention; and
- Equality among the States of the Federation in the case of regular intervention.
The distribution of funds shall be in the ratio of 2:1:1 as between Universities, Polytechnics and Colleges of Education.
The Board of Trustees shall have power to give due consideration to the peculiarities of each geo-political zone in the disbursement and management of the Tax imposed by the Act between the various levels of tertiary education.
