Effect of Education Tax Revenue on the 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
3 ekwemike@yahoo.com

This study evaluates the effect of Education Tax Revenue on the development of Tertiary
Education in Nigeria. 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 1999 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. This study 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.
Keywords: Education tax revenue, Physical infrastructure, Research engagements,
Human resource development, Library and laboratory facilities, Conference

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