A Guide To The Tertiary Education Tax In Nigeria

Understanding the financial structure of tertiary education tax in Nigeria is crucial for students, educators, and policymakers. One significant aspect of this structure is the Tertiary Education Tax.

This article explores the Tertiary Education Tax in Nigeria, its implications, and its significance in Nigeria, shedding light on its role in the country’s educational landscape.

education tax in nigeria

What Is Tertiary Education Tax In Nigeria

Tertiary Education Tax in Nigeria refers to the tax imposed on the profits of companies operating in Nigeria, to fund tertiary education.

The Tertiary Education Trust Fund (TETFund) administers the tax and utilizes the funds for providing essential infrastructure and facilities in public tertiary institutions, as well as for improving the quality of education in Nigeria.

The Tertiary Education Tax plays a crucial role in supporting and enhancing the educational system in Nigeria, ensuring that tertiary institutions have the necessary resources to deliver quality education and research opportunities.

The Importance of the Tertiary Education Tax in Nigeria

The tertiary education tax in Nigeria plays a crucial role in the development and sustenance of the country’s higher education system. This tax is important for several reasons.

Firstly, the infrastructure and facilities of tertiary institutions across Nigeria are funded by the revenue generated from the tax. This funding is essential for maintaining a conducive learning environment and providing students with access to quality resources such as libraries, laboratories, and modern technology.

Additionally, the tertiary education tax contributes to the improvement of academic programs and the overall quality of education. It supports research initiatives, faculty development, and curriculum enhancements, which are vital for ensuring that Nigerian universities and colleges offer relevant and competitive education in a global context.

Furthermore, the tax plays a significant role in promoting access to higher education for students from diverse socio-economic backgrounds. By allocating funds for scholarships, grants, and financial aid programs, the tertiary education tax helps to make education more affordable and accessible, thereby increasing the overall level of education in the country.

Moreover, the tertiary education tax is essential for fostering innovation and entrepreneurship. It provides resources for the establishment and growth of incubation centers, technology transfer offices, and other initiatives that support the development of innovative ideas and the commercialization of research findings.

In conclusion, the tertiary education tax in Nigeria is indispensable for the advancement of the country’s higher education sector. Its impact is far-reaching, influencing the quality of education, accessibility, research, and innovation, and ultimately contributing to the overall development of the nation.

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Frequently Asked Questions about the Tertiary Education Tax in Nigeria

What is the rate for the Tertiary Education Tax?

Companies registered in Nigeria are charged a 3% tax on their profits for tertiary education.

Who is to pay Tertiary Education Tax?

The Tertiary Education Tax is payable by Nigerian companies subject to the Income and Petroleum Profit Tax.

Do Non-Resident Companies Pay Tertiary Education Tax?

No, only companies registered in the country pay the Tax.

Who Administers the Tax?

The Federal Inland Revenue Service is charged with the responsibility for the assessment and collection of the tax.

What is the primary objective of the Education Tax?

Education tax is intended to achieve restoration, rehabilitation, consolidation and development of tertiary education in Nigeria.

Which Act Imposes the Tertiary Education Tax?

The tax law that imposes the Tertiary Education Tax is the Tertiary Education Trust Fund (Establishment, Etc.) Act No 16, of 2011

How is the Tertiary Education Trust Fund Distributed?

The fund is distributed in the ratio of 2: 1: 1 as between Universities, Polytechnics and Colleges of Education respectively.

What are the Due Dates for Filing TET Returns?

When it comes to filing your taxes for Tertiary Education, it’s usually done at the same time as your Company or Petroleum Income Tax. For companies in the petroleum industry, the due dates are as follows:

a) You need to file an estimated tax return within 2 months after the start of each accounting period, which means on or before February.

b) The final return should be filed within 5 months after the end of the accounting period, so on or before May.

For companies not in the petroleum industry, the due dates are:

a) If your company is newly registered, you need to file within eighteen (18) months from the date of incorporation or six (6) months from the end of the company’s first accounting year, whichever comes first.

b) For existing companies, the deadline is within six (6) months from the end of the company’s accounting year.

What is the penalty for failure to pay the tax due within the specified time?

The unpaid tax plus a sum which is equal to 5 percent of the tax.


The Tertiary Education Tax in Nigeria is crucial for the development of the country’s higher education system. It funds infrastructure, supports academic programs, promotes accessibility, and fosters innovation.

For companies in Nigeria, fulfilling tax obligations directly impacts tertiary education quality and accessibility.

Ultimately, the Tertiary Education Tax is a key component in ensuring that Nigeria’s educational institutions can provide a high standard of education and research opportunities for the benefit of the nation.