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Home Education

TETFund debate deepens over private universities funding divide

Quadri Olaitan by Quadri Olaitan
March 17, 2026
in Education
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TETFund

TETFund tertiary education reform

Debate over TETFund private universities inclusion intensifies as stakeholders clash over equity, funding priorities and public university needs

A renewed debate over Nigeria’s tertiary education funding has intensified, as academics, policymakers and labour unions remain sharply divided over whether TETFund private universities should be included in intervention support.

Also read: ASUU demands probe of VCs over TETFund mismanagement

The controversy, which has persisted for over two decades, has gained fresh momentum amid rising revenues to the Tertiary Education Trust Fund and the rapid expansion of private universities across the country.

Established under the TETFund Act of 2011, the fund provides supplementary financing for federal and state universities, polytechnics and colleges of education, drawing from a two per cent education tax on company profits. Private universities, despite their growing presence, remain excluded from the scheme.

Nigeria now has more than 250 universities, with private institutions accounting for the largest share following increased licensing by the National Universities Commission. Proprietors argue that their exclusion from TETFund interventions creates a structural imbalance in higher education financing.

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Recent figures have further sharpened the debate. Data indicate that TETFund received about N1.024 trillion between 2019 and 2023, with annual collections rising to N322.99 billion in 2022 and a record N571.01 billion in 2023.

At a recent colloquium held in honour of Professor Jide Owoeye, Vice-Chancellor of Chrisland University, Professor Oyedunni Arulogun, called for a more inclusive funding model.

“If higher education is the engine of national transformation, intervention must be designed to serve all — both public and private universities,” Professor Oyedunni Arulogun said, stressing that private institutions contribute significantly to access, infrastructure and manpower development.

Chancellor of Lead City University, Professor Gabriel Ogunmola, echoed the position, arguing that education funding should prioritise national interest rather than ownership structures.

“The money must serve the interest of all,” Professor Gabriel Ogunmola said, noting that many private universities meet regulatory standards but operate without access to intervention funds that could strengthen research and innovation.

Former Executive Secretary of the National Universities Commission, Professor Peter Okebukola, described the case for inclusion as compelling, citing equity, relevance and historical precedent.

“What TETFund collects comes mainly from the private sector,” Professor Peter Okebukola said, adding that private universities should benefit from a fund largely financed by taxes paid by private companies.

He proposed several models, including performance-based funding, differentiated allocation frameworks and restricted eligibility tied to institutional capacity.

However, the Academic Staff Union of Universities has maintained strong opposition. The union insists that the intervention was specifically designed to address decades of underfunding and infrastructural decay in public institutions.

ASUU President, Professor Chris Piwuna, warned that extending TETFund support could weaken already strained public universities, many of which rely heavily on the fund for critical infrastructure, research grants and staff development.

Public universities across Nigeria continue to grapple with overcrowded lecture halls, inadequate facilities and limited research funding, challenges that stakeholders say underscore the original purpose of the intervention.

Analysts note that while private universities play an increasingly vital role in absorbing demand for higher education, public institutions remain the backbone of Nigeria’s research and training ecosystem.

Some policy experts have suggested a cautious middle ground, including the creation of a separate intervention window focused on research collaboration and innovation, rather than direct infrastructure funding.

Director of Policy at Reform Education Nigeria, Ayodamola Oluwatoyin, emphasised the need for a sustainable and balanced approach.

“Whether public or private, there is a need for a sustainable funding model,” Ayodamola Oluwatoyin said, underscoring the broader challenge confronting Nigeria’s higher education system.

Also read: FG orders report on TETFund unutilised funds

As the debate over TETFund private universities inclusion grows more intense, the question facing policymakers is whether expanding the framework can be achieved without undermining the fragile gains recorded in public tertiary institutions.

Quadri Olaitan
Quadri Olaitan

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