Taxing universities stifles access to quality education – Pro-chancellor

Pro Chancellor of Achievers University, Dr Bode Ayorinde

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The Pro-Chancellor of Achievers University, Owo, Ondo State, Prof. Bode Ayorinde, has urged the Federal Government to exempt universities and other educational institutions from paying taxes, arguing that education should be supported and subsidised rather than treated as a commercial enterprise.

Ayorinde made the call on Saturday at the institution’s 15th convocation ceremony, where he warned that multiple taxes imposed on educational institutions are stifling access to quality education and undermining national development.

Speaking in a lecture titled “Rethinking taxation in the education sector: Why educational institutions should not be taxed,” he said levies such as company income tax, Value Added Tax, education tax, development levy, billboard and radio taxes, as well as personal income tax on proprietors, place a heavy burden on universities.

“These taxes eat deeply into over 40 per cent of the tuition fees that tax authorities classify as revenues of educational institutions tagged as ‘companies.

“What are we producing? Education is not merely a social service; it is an investment in human capital. Nations that have made deliberate efforts to nurture their educational systems have reaped abundantly in productivity, innovation and economic growth,” he said.

Ayorinde argued strongly that education should not be taxed under any circumstances.

“I stand here to argue strongly that education should never be taxed. Instead, it should be supported, subsidised and incentivised as a critical sector for national transformation.

“Education is a public good, not a business enterprise to be taxed. Private universities in Nigeria are not established for profit-making in the commercial sense, but to complement government efforts and help close the admission gap,” he said.

According to him, taxing educational institutions could force universities to withdraw scholarships, end free-tuition programmes and increase fees, thereby denying many qualified students access to education.

“Mr President and the National Assembly should please be informed and guided that an attempt to impose taxes on educational institutions is to tax knowledge, tax enlightenment, tax opportunities, and tax the future of young Nigerians,” he said, adding that such a policy would be “counter-productive and contrary to global best practices.”

He appealed to the Federal Government to implement urgent policy reforms: “The government should, as a matter of urgency, direct the Federal Inland Revenue Service and the various state boards of internal revenue to grant full tax exemption to all educational institutions, especially universities.”

Ayorinde, who served as a member of the House of Representatives between 2015 and 2019, said universities should be treated globally as development partners rather than revenue-generating entities.

Addressing graduating students, he urged them to be good ambassadors of the institution and to shun social vices, including drug abuse.

“Achievers University has equipped you with knowledge and character. May you rise as leaders with integrity who will make your families proud and help build the prosperous Nigeria we all dream of,” he said.

Earlier, the Vice-Chancellor, Prof. Oyesoji Aremu, disclosed that 72 students graduated with first-class honours out of 705 graduands at the ceremony.

He said 653 students earned first degrees, while 49 completed postgraduate programmes, including postgraduate diplomas, master’s degrees and one Doctor of Philosophy.

Aremu added that over 1,000 students were newly matriculated in the current academic session, noting that the university expects enrolment to rise further in the 2025/2026 session.

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