This study sought to determine the effect of the education tax fund (ETF) on Nigeria's higher institutions. The study assessed the influence of education tax revenues on Nigerian postsecondary institutions. One hundred students who are already enrolled in a Nigerian higher institution filled out a questionnaire to collect data. This study was driven by the significant impact that the education tax fund has had on Nigeria's higher education institutions. The statistical method used for analysis was the straightforward percentage technique. The following conclusions were determined by analyzing the responses to the researcher's questionnaire.
BACKGROUND TO THE STUDY
Education has been characterized in a variety of ways by various academics. Okonkwo (1988) described education as a cultural action aimed at inculcating the required attitudes and behaviors for involvement and intervention in one's historical process. According to Okafor in Iwuchukwu (1993) defined education as a process of acculturation through which the individual is helped to acquire the development of his potentials and their maximum activation when necessary according to sound reason and to achieve therefore his ideal self-fulfillment.
According to Uche (1984), education is the training and development of an individual's cerebral capabilities, physical knowledge skills, and character through formal and informal schooling. However, according to Iwuchukwu (2006), the creation of the national strategy on education began in 1847 with the establishment of the British privy council on education. According to the National Policy on Education (1981), tertiary institutions include universities, polytechnics, and colleges of technology, as well as the College of Education, advanced teacher training colleges, correspondence colleges, and other institutions as appropriate.
Over the year, it has been conjectural by education experts that one of the major problems military against the realmation of the objectives of establishing tertiary institutions in Nigeria problem of poor funding on this, therefore Ozurumba (1998) said the best education plan could be easily aborted if not supported by adequate funds. Insufficient funding of the system has contributed to the problem in this country. Authenticating this further Amadi (1999) remarked throughout the oil boom, the current moment of tremendous economic reversals in the petroleum oil sector, financing of education has suffered unimaginable harm.
To this end, tertiary institutions require funding for research in medicine, engineering, education, etc., as well as funds for the training and retraining of lecturers, acquisition of state-of-the-art facilities, and other amenities that can foster student potentials for the overall success of higher education in Nigeria. Moreso, as a result of the job prospects available to graduates and our rising population, there was a need for higher education which led to the government to impose tax to education sector.
A tax fund is a sum of money that has been set aside or made accessible to the government for use in providing public services. Tax fund is utilized by the government to maintain and take care of some specified items in the country. Under current Nigerian law, taxation is enforced by the three tiers of government, i.e. federal, state, and local government, with each having its sphere clearly spelled out in the taxes and levies (approved list for collection) degree 1998. Tax regulations pertaining to foreign and domestic investors are of particular importance at this time.
The importance of tax regulations cannot be overemphasized, as most transactions with any ministry, department, or government agency cannot be concluded without evidence of tax clearance i.e. a tax clearance certificate certifying that all taxes due for the three immediately preceding years of assessment have been settled in full. The following are some of the relevant tax regulations of the country.
Value-added tax (VAT): This was implemented by VAT Decree No. 2 of 1993 to replace the previous sales tax. It is a consumption chain for which the final consumer is responsible. It requires a taxable person upon registering with the federal board of inland revenue to charge and collect VAT at a flat rate of 5% (recently increased to 10%) on all invoiced amount of taxable products and services.
Capital gains tax: This applies to all gains accruing to a tax payer from the sale or lease or other transfer of proprietary right in a chargeable interest that are subject to a 10% capital gains tax. Chargeable assets may be corporate or incorporated, and it does not matter if the asset is located in Nigeria or not.
All enterprises formed in Nigeria are required to pay an education tax equal to 2% of their taxable profits. This tax is considered as a civic obligation imposed on all businesses to ensure that they give their fair share to the development of educational institutions in the nation.
Personal income tax: This tax is based on the requirements of decree (now act) 104 of 1993 (personal income tax decree).
Tax revenue has enabled the government to establish or construct schools, maintain roads, and undertake other citizen-beneficial initiatives. The finance of these higher education institutions was unquestionably the responsibility of the government, which carried this suffocating weight. In addition, the government was required to develop new programs and specialized areas, provide facilities and equipment for teaching and learning, and award students with scholarships and bursaries.
To ease this massive load, the education tax fun (ETF) decree No 7 of 1st January, 1993 was promulgated. In light of this, the purpose of this study is to investigate the impact of the education tax fund on tertiary institutions.
EXPRESSION OF THE PROBLEM
The absence of proper funding for our tertiary institutions has hindered their ability to achieve their intended purpose. Has the situation at our tertiary institution truly changed 14 years after the education tax decree and its subordinate implementation?
Prior to the implementation of this decree, our tertiary institutions were plagued by dilapidated buildings, overcrowded classrooms and dorms, and obsolete texts in our libraries. These issues persist in our higher education institutions. If they still exist, it is necessary to determine how the education tax fund (ETF) has affected our postsecondary school.
OBJECTIVE OF THE STUDY
These are the objectives of this study:
Determine the extent to which the education tax fund has benefited higher institutions.
To investigate the obstacles preventing the disbursement of the fund.
To discover answers to these issues so as to improve tertiary institutions.
THE IMPORTANCE OF THE STUDY
It is anticipated that this study would acquaint the government, students, and society at large with the multiple benefits of the education tax fund (ETF) awards for easing the burden of academic endeavors at our higher education institutions. The findings will inform the public of the different obstacles to the disbursement of this fund since its conception or beginnings.
SCOPE OF THE RESEARCH
This study is limited to the effects of the education tax fund (ETF) on Nigerian postsecondary institutions. Other than the impact of the education tax fund on tertiary institutions, the study is not concerned in explaining or predicting learning outcome variables.
The study's result and conclusion are therefore limited to the specified tax fund, but may be extrapolated to other Nigerian higher schools with educational default.
DEFINITION OF TERMS
Taxes are payments made to the government in order to fund public services.
A fund is a sum of money that has been set aside or made accessible for a specific purpose.
Education: The process of teaching, training, and learning, particularly in schools and colleges, in order to increase knowledge and develop skills.
University: An institution at the highest level of education that offers degree programs.
THE EFFECT OF THE EDUCATION TAX FUND ON NIGERIAN TERTIARY INSTITUTION