EDUCATION TAX REVENUE AND DEVELOPMENT OF TERTIARY EDUCATION IN NIGERIA

EDUCATION TAX REVENUE AND
DEVELOPMENT OF TERTIARY
EDUCATION IN NIGERIA
Basil Chinemerem Amauwa 1 , John U.
Ihendinihu 2 , & Michael C. Ekwe 3
Department of Accounting, College of
Management Sciences
Michael Okpara University of Agriculture,
Umudike
1
basilgreat72@gmail.com,
2
ihendinihu.john@gmail.com
ekwemike@yahoo.com
3
ABSTRACT
The
paper evaluates
the
effect
of Education Tax
Revenue
on the
development of Tertiary Education in Nigeria
since the establishment of Tertiary EducationBook of Abstract
Trust Fund (TETFund) in 2011. The Fund was
set up to administer and disburse to Federal
and State Tertiary educational institutions
revenue accruing from 2% Education Tax on
the assessable profits of registered companies
in Nigeria. The mandate of the Fund is to
rehabilitate, restore and consolidate higher
educational institutions, and the extent to
which these noble goals have been met given
the dilapidated state of higher educational
institutions in the country has become a
recurring subject matter for enquiry. The
purpose of the study is to determine whether
a causal link exists between Education Tax
Revenue and the
developmental
interventions by TETFund on Physical
infrastructure, Research
engagements,
Human resource development, Library and
laboratory
facilities,
and
Conference
attendance in Nigeria’s tertiary institutions.
Data on education tax revenue and each of the
five intervention
areas specified for
investigation from 2011 to 2018 were
collected from the Bulletins of the National
Bureau of Statistics, and the Tertiary Education
Trust Fund, and analyzed using simple
regression technique. Results indicate that
education tax revenue has made significant
and positive impact on physical infrastructure,
human resource development and library and
laboratory facilities, while interventions in
research engagements and conference
attendance were not significantly impacted.
The paper noted the educational implications
of these shortfalls and inadequacies in the
light of the mandate and need to advance
research and innovation in tertiary
institutions, and proposed remedial actions
targeted at encouraging government and
other stakeholders in the education subsector
to prioritize research efforts in tertiary
institutions to improve the global visibility of
Nigeria’s
tertiary
institutions,
their
competitiveness in innovation and institutional
ranking.
Accounting and Finance Research Association
Keywords: Education tax revenue, physical
infrastructure, research engagements, human
resource development, library and laboratory
facilities, conference attendance

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