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This research work is on the Impact of Tertiary Education Trust Fund on the Development of some selected Tertiary Institutions. Education in Nigeria has been facing a lot of challenges and problems which affect the standardization of the sector for many years. Despite the effort of the past administrations to overcome the problems facing the sector, they still manifest in our tertiary institutions. These problems are among others on the funding mechanism which leads to poor structure poor library and laboratory equipments, staff training, research programmes, poor teaching and reading aids etc. TET-FUND is now the current agency established by the government to solve the problem of poor funding in the education sector, but despite the efforts of the TET- FUND these problems still manifest, why? It also showed how TET-FUND identifies areas of weakness and intervenes to solve the problems. The research work covered the period of 2005 – 2010. It used both primary sources of data which includes interview, questionnaire and observation and secondary data which includes relevant literature as text books, journals, hand books etc Random sampling and systematic sampling technique were adopted. Simple percentage and highest mean score were used in data analysis. It was discovered that TET-FUND made good effort to overcome the problem of funding in the education sector but more are needed from the agency. The study also established that TET-FUND uses only 2% assessable profit of Limited Liability Company and some special grant from the government as its sources. It was gain discovered that TET-FUND makes flat system of allocation to all universities, flat to all polytechnics and flat to all colleges. The work recommended that TET-FUND should continue with some adjustments and amendments to suit the dynamic nature of the society. Also the study recommended that 2% assessable profit should be increased to at least 5%. Also, allocation should be made based on needs to the institutions. Conclusively, a local fund management committee (LFMC) in each beneficiary institution should be set up to ensure viability and completion of project. The research work also recommended for further studies in related areas.



1.1 Background of the Study

Education is regarded as the sine-quo-non for societal development. Nigerian educational system is constituted by primary, secondary and tertiary education. In order to enhance the quality and standard of education particularly at the tertiary level, the Tertiary Education Trust Fund (TET-FUND) was primarily established to ensure adequate funding of the sector particularly at the tertiary level as a pre-requisite in providing quality and standard education background for the people by solving the problem. This problem include poor structure, inadequate library and laboratory equipments, poor infrastructural/facilities, poor innovative and creative approach to learning, poor scientific information and technological literacy, inefficient allocation of the meager resources available to the sector etc.

Development of the educational sector means the development of all other sectors of the society. All people need training, development, upgrading and certification to engaging in various sectors of the economy. We need strong educational system and standard operational system to be able to improve economic, political, social and psychological nature of people in the society.

It is a pre-requisite for national development because it affects all other sectors and consequently, a neglect of the education sector translates to significant malfunctioning of other sectors of the country. The sector suffers a lot of problems ranging from lack of proper supervision and monitoring, inadequate funding, mismanagement and misallocation of resources etc. Many policies have being put in place by different administration to address the aforementioned problems in Nigeria. (TET-FUND at a glance. 2010).

Tertiary Education Trust Fund (TET TUND) came into being at a time when the education sector had suffered many years of neglect by successive governments which resulted in large-scale decay of institutional facilities, physical structures, academic, teaching and research equipments etc. In addition, teacher morale has been dampened and genuine interest in teaching and learning has been eroded in our educational system

This poses a lot of challenges in the management of the fund to meet the number of problems facing the sector; the funding situation in these institutions, mostly the state-owned tertiary institutions is very alarming, because of poor structure, poor library and laboratory equipments etc. Consequently, the Tertiary Education Trust Fund (TET- FUND) is being looked upon by the education sector as the alternative source of funding to run the system. Despite these demands, TET-FUND largely depends on resources/revenues from the profits of companies which are not doing well due to several years of government neglect. The real challenges therefore are: The ability to equitably manage the available funds to meet the yearnings of stakeholders, the ability to impact on the sector to encourage taxpayers to continue to support the programme, ability and capability to ensure the judicious use of the meager resources, ability to make influential decisions to enhance and boost the teachers morale to such a level as to positively rekindle interest in teaching and learning, ability to sufficiently sensitize and collaborate effectively with the federal Inland Revenue service to ensure and build maximum revenue from the tax collected.

In order to ensure the availability of functional qualitative and dynamic education in the country all stakeholders, national and international must pool resource together and engage in concerted efforts to achieve these goals.

The importance of education to the development of any nation cannot be over emphasized. It is this realization that prompted the UNESCO to recommend a base line of 26% budget allocation to education for member states. Over the years, the Nigerian education system has being confronted with number of problems, the most critical of which is funding.

The Tertiary Education Trust Fund (TET-FUND) was established by the government as an intervention mechanism to reduce the problem of funding in the sector. However, critics in the educational sector amount to inadequate funding and failure of the TET-FUND in carrying out its mandates for the provision of adequate intervention in the sector due to poor revenue base. While supporters of the TET-FUND initiative have absolved TET-FUND free from any negligence and have in fact, scored it high in the deliverance of services, it should be stated that there have not been any independent assessment of the fund with a view of setting the records straight.


1.2 Statement of the Problem

Education in Nigeria has been faced with so ninny problems including funding which has resulted in the decay of physical structures, poor library and laboratory equipments, poor touching and learning aids, poor innovative and creative approaches to modern education system, poor research and book development, poor staff/lecturers training etc. In the light of these problems, government after the past attempts failed to solve the existing problems decided to introduce Tertiary Education Trust l\md to TET-FUND to overcome the above slated problems in order lo standardize the education system.

Ideally. Tertiary Education Trust Fund (TET-FUND) is supposed to act as an iiik’i’wnlitmisl agency lo provide funding lor the educational facilities and infrasiructural development so thai the decay in the sivueluval and infrasliuclural decay would, be solved in the Nigerian tertiary institutions, to promote creative and innovative approaches to educational learning and teaching, to ensure library and laboratory development and to champion new literacy-enhancing programmes such as scientific mfonnalion and technological literacy. But despite the establishment of’Tertiary Education Trust Fund (TET-FUND) from inception to date, the staled problems still exist, why? There is a gap between the expected result and the reality and there must be reasons for that.

The emergence of TET-FUND vva.s expected to be the starting point of solving the myrad of problems facing the tertiary education in Nigeria. But there is a discrepancy between the expectation from the agency and its performance. Even though researches have shown that the gap is due to mismanagement of the available funds other researches argued that is becausc of political interference, some maintained that corruption is the basis and some argued on poor monitoring and supervisions. There must be reasons as to the low performance of the Tertiary Education Trust Fund towards solving (he problems facing the Education system especially at tertiary level. In line with ‘this, the following research questions were designed for further analysis.

1.3. Research Questions

(I)To what extent has TET-FUND made effort towards the development of tertiary institutions in Nigeria?

What has been the level of funding by TET-FUND in relation to resource allocation and its sources?

(3) What are the ways forward to improve the performance of TET-FUND towards developing the tertiary education in Nigeria?

1.4. Objectives of the study

I he study seeks lo:-

  • Find out the extent to which TKT-FUND made effort towards the development of tertiary institutions in Nigeria.
  • Investigate the level of funding by T1T1 -FUND in relation lo resources allocation and its sources of revenue.
  • Find out the ways forward lo enhance the performance of TET-FUND towards developing the tertiary education in Nigeria.


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