The Pro-Chancellor of Achievers University in Owo, Ondo State, Professor Bode Ayorinde, has issued a strong appeal to the Federal Government. He is calling for universities and other educational institutions to be completely exempted from paying various taxes.
A Heavy Burden on Education
Professor Ayorinde made this urgent appeal during the institution's 15th convocation ceremony. He argued that multiple taxes are placing a crippling financial burden on schools. He detailed how levies like company income tax, Value Added Tax (VAT), education tax, and development levies are harming the sector.
According to his analysis, these government charges consume a significant portion of university funds. Over 40 percent of tuition fees, which tax authorities classify as institutional revenue, is eaten up by these payments. Ayorinde stressed that this model treats vital educational bodies as mere commercial companies, which he believes is a fundamental error.
Education as an Investment, Not a Business
In a lecture titled 'Rethinking taxation in the education sector: Why educational institutions should not be taxed,' Ayorinde laid out his core argument. He stated that education is a critical public good and an investment in human capital, not a business enterprise designed for profit.
"What are we producing? Education is not merely a social service; it is an investment in human capital," he said. He pointed to nations that have strategically supported their educational systems and reaped rewards in productivity, innovation, and economic growth.
He emphasized that private universities in Nigeria exist primarily to complement government efforts and bridge the massive admission gap, not for commercial gain. Therefore, he believes they should be supported, subsidised, and incentivised, not taxed.
Dire Consequences and a Call to Action
The professor warned of severe consequences if the current tax regime continues. He said it could force universities to take drastic measures that would directly hurt students. These include withdrawing scholarship programmes, ending free-tuition initiatives, and inevitably increasing school fees. This would deny many qualified young Nigerians access to higher education.
Ayorinde directed a pointed message to the country's leadership. "President Bola Tinubu and the National Assembly should please be informed and guided that an attempt to impose taxes on educational institutions is to tax knowledge, enlightenment, opportunities, and the future of young Nigerians," he stated. He labeled such a policy as counter-productive and out of step with global best practices.
His concrete recommendation is for the government to enact urgent policy reforms. He wants a directive issued to the Federal Inland Revenue Service (FIRS) and state internal revenue boards to grant full tax exemption to all educational institutions, with a special focus on universities. He concluded that universities must be seen as partners in national development, not as sources of government revenue.
During the same convocation event, Professor Ayorinde also addressed the graduating students. He urged them to be worthy ambassadors of Achievers University and to avoid social vices like drug abuse. He expressed hope that they would become leaders of integrity who contribute to building a prosperous Nigeria.
