Business
Extending TETFund Intervention To Critical Infrastructure
Analysts observe that
the crises of funding the education sector gave birth to the establishment of Education Tax Fund in 1993 which later metamorphosed to Tertiary Education Trust Fund (TETFund).
“In the beginning, the fund was saddled with the responsibilities of revamping, rehabilitating and revatilising infrastructural facilities in tertiary institutions.
“The mandate later covered other areas of need in the universities, polytechnics and colleges of education sectors,’’ analysts observe.
They note that although the fund is mandated to concentrate its interventionist services on the enumerated areas, it should extend its interventions beyond infrastructural development to other service areas.
The fund derives its revenue from the two per cent Education Tax via the Federal Inland Revenue Services that remits the amount collected to the account of the fund.
In the distributing of the fund, 41 per cent of it goes to the universities, 30 per cent to the polytechnics while colleges of education take 29 per cent.
The distributions are essential in the provision of physical infrastructure and equipment, library development, academic staff training and development.
Irrespective of the scope of TETFund intervention, the Vice-Chancellor of Federal University of Technology, Akure, Prof. Adebiyi Daramola, insisted that the fund should extend its intervention in tertiary institutions to critical infrastructure.
According to him, capital votes for the development of critical infrastructure such as roads, optic fibre for internet and hydro-power plant projects from government are inadequate and there is need for TETFund’s intervention in that regard.
He insisted that the fund should take its interventions beyond infrastructure that had direct bearing on teaching and learning.
“We are saying that those infrastructure are very important, we don’t even have enough of them; but at the same time some critical infrastructure are needed to boost the existing ones.
“We need power to run any decent university; we need investment in water provision for the environment to be decent enough, we need fibre optic for internet access and, of course, we need good roads,’’ he said.
The Vice-Chancellor, in an interview, stressed the need for the provision of such critical infrastructure to boost teaching and learning.
“Since every university is a community on its own, it would also be helpful if TETFund could help with the provision of students’ accommodation,’’ he said.
He, nonetheless, admitted that tertiary institutions in the country would not function well without interventions from TETFund.
However, the Vice Chancellor, Federal University, Oye-Ekiti, Prof. Isaac Asuzu, said contractors handling projects for the new universities were contributing to inadequate infrastructure in tertiary education sector.
He said in an interview that contractors handling various projects had been delaying by giving excuses in spite of the huge money released to them by TETFund.
Asuzu urged the Federal Government to increase TETFund’s budget and advised TETFund to ensure effective implementation of its projects.
But the Executive Secretary of TETFund, Prof. Suleiman Bogoro, insisted that the fund had its mandate and could not function contrary to it.
He said “the fund is commissioned to financially empower higher institutions in Nigeria to fulfil their mandate through the provision of essential physical infrastructure for teaching and learning.
“Provision of instructional materials and equipment, research, book development and publication, academic staff training and development.
“Other needs essential for the improvement of quality and maintenance of standards in the educational institutions.’’
He further noted that since the TETFund Act was amended in 2011, it had invested hundreds of billions of naira in tertiary institutions across board — universities, polytechnics and colleges of education.
“Through these funds, we have been able to rehabilitate and upgrade laboratories of 51 federal and state polytechnics.
“We have constructed micro-teaching laboratories in 58 federal and state colleges of education.
“We have trained and developed close to 10, 000 academic staff both locally and internationally and supported 29 institutions to develop and publish research journals both locally and internationally,’’ he said.
He observed that the Nigerian education system was often characterised by decrepit infrastructure, deteriorating equipment and facilities, under-equipped laboratories, inadequate textbooks and other teaching materials.
He insisted that the academic institutions had an important role to play, especially in light of the heightened expectations for federal and state tertiary institutions.
“It is clear, of course, that simply investing more money into the system is not itself an answer; how that money is spent matters greatly in creating a strong and vibrant education sector.
“In 2013, TETFund allocations to universities, polytechnics and colleges of education stood at N31.338 billion, N12.950 billion and N12.550 billion respectively.
“These are supposed to complement their Capital Allocations and Internally Generated Revenue.
“Somehow, TETFund intervention funds have remained the guaranteed source of capital allocations in public tertiary institutions in the past two decades,’’ he said.
He observed that availability of funds had never solved all the problems and challenges in tertiary institutions.
“Our recent experiences have shown that the challenges of quality of governance, political interference, corruption and moral degeneration and unethical practices have emerged as very serious issues that all of us, including the various unions in our institution must address,’’ he said.
All in all, he insisted that key stakeholders must be convinced that inclusive and qualitative education reinforced by responsible management in our educational institutions are in dispensable.
Dore is of the News Agency of Nigeria (NAN).
Nysom Dore
Business
SMEs Dev: Firms Launch N100m Loan Scheme
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
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