The Federal Government of Nigeria is set to implement a new funding policy that may significantly reshape the country’s tertiary education system. Under this directive, universities and colleges with fewer than 1,000 enrolled students could lose access to the Tertiary Education Trust Fund (TETFund). The plan comes in response to recent data showing that several federal institutions continue to record alarmingly low admission figures.
Contents
- Overview of the Proposed Policy
- Federal Government’s Position
- Data Reveals Worrisome Admission Gaps
- Examples of Under-Enrolled Institutions
- Experts Raise Alarm Over Low Enrollment
- Analysts Link Low Enrollment to Reputation Bias
- Implications of the Enrollment Crisis
- 1. Economic Waste
- 2. Quality and Sustainability Issues
- 3. Regional Disparities
- TETFund and Its Role in Nigeria’s Education System
- Rationale Behind the New Policy
- Suspension of New University Approvals
- Stakeholder Reactions
- 1. Support from Education Reform Advocates
- 2. Concerns from Affected Institutions
- Potential Impact on Students and Communities
- Ministry’s Call for Institutional Reforms
- Public Perception and Trust Deficit
- Link Between Funding and Institutional Competitiveness
- The Way Forward
- Conclusion
- FAQs
- 1. What is the purpose of TETFund in Nigeria?
- 2. Why is the Federal Government linking funding to enrollment?
- 3. Which institutions are most affected by the new policy?
- 4. When will the new policy take effect?
- 5. Will the policy improve Nigeria’s education quality?
Overview of the Proposed Policy
According to the Ministry of Education, the new funding framework seeks to promote fairness and efficiency in how government resources are distributed. The Ministry’s latest admission report revealed that over 20 federal tertiary institutions admitted fewer than 1,000 students for the 2024/2025 academic session — a figure the government described as “unsustainable and uneconomical.”
The proposed measure, expected to take effect in 2026, will link TETFund allocations to student population levels. This means that institutions with inadequate enrollment may no longer receive grants designed for infrastructural development, research, and staff training.
Federal Government’s Position
Speaking during the 2025 Policy Meeting on Tertiary Education in Abuja, the Minister of State for Education, Professor Suwaiba Ahmad, emphasized the need to ensure that public funds are utilized efficiently. She questioned why schools with fewer than 1,000 students should continue to receive the same level of funding as larger universities with tens of thousands of enrollees.
“It is unfair and financially wasteful to allocate equal TETFund resources to institutions that are barely functional,” she said. “We must encourage these institutions to become more competitive and self-sustaining.”
Professor Ahmad added that schools must demonstrate relevance and impact within the national education system before qualifying for further financial support.
Data Reveals Worrisome Admission Gaps
The Federal Ministry of Education’s 2024/2025 admission data exposed a troubling trend across several federal tertiary institutions. Some schools recorded extremely low enrollment numbers despite millions of candidates applying for the Unified Tertiary Matriculation Examination (UTME) each year.
Examples of Under-Enrolled Institutions
- Federal University of Agriculture, Mubi: 184 students admitted
- Federal Polytechnic, Ohodo: 65 students
- Federal University of Health Sciences, Otukpo: 568 students
- Alvan Ikoku Federal University of Education: 942 students
- Federal Polytechnic, N’yak Shendam: 89 students
- Federal College of Education (Technical), ISU: 38 students
Other institutions in Mongunu, Iwo, and Odugbo also admitted fewer than 600 students each.
Experts Raise Alarm Over Low Enrollment
Education experts and analysts have expressed deep concern over the figures, describing them as alarming for a nation that boasts 278 universities and millions of potential students. According to Joint Admissions and Matriculation Board (JAMB) statistics, more than six million candidates who sat for UTME between 2020 and 2024 failed to secure admission into any tertiary institution.
Analysts Link Low Enrollment to Reputation Bias
Analyst Ayodamola Oluwatoyin attributed the problem to a long-standing preference among students and parents for older, more established universities.
“Most candidates prefer traditional universities like the University of Ibadan or Ahmadu Bello University,” Oluwatoyin noted. “They believe these institutions guarantee better academic quality and job prospects compared to new ones, even if it means facing higher competition.”
This sentiment, according to him, has left many newly established universities struggling to attract sufficient applicants.
Implications of the Enrollment Crisis
The declining enrollment figures present multiple challenges for Nigeria’s tertiary education sector, including inefficient use of government funds, underutilization of academic staff, and a widening gap in educational quality across regions.
1. Economic Waste
Maintaining underpopulated universities drains resources that could otherwise support more productive institutions. Infrastructure, staff salaries, and maintenance costs remain constant even when student numbers are low.
2. Quality and Sustainability Issues
Schools with limited students often struggle to sustain academic programs, research projects, and collaborations. This further diminishes their reputation and attractiveness to prospective candidates.
3. Regional Disparities
The data reveals that most under-enrolled institutions are located in rural or less developed areas, suggesting a deeper socio-economic divide in access to education.
TETFund and Its Role in Nigeria’s Education System
The Tertiary Education Trust Fund (TETFund) was established to provide financial support to public tertiary institutions for infrastructure, research, and academic development. It is funded through a 2% tax on the profits of registered companies in Nigeria.
However, critics argue that TETFund allocations have become uneven and inefficient, with some institutions receiving funds far beyond their capacity to utilize them effectively.
Rationale Behind the New Policy
According to Ministry officials, the proposed reform will ensure equitable resource distribution and performance-based funding. By linking TETFund allocations to enrollment numbers, the government aims to reward institutions that attract more students and demonstrate stronger operational efficiency.
The government also plans to use enrollment data as one of the key benchmarks for evaluating institutional performance.
Suspension of New University Approvals
In a related development, the Federal Ministry of Education announced a temporary suspension on the creation of new universities. Minister of Education Dr. Tunji Alausa warned that approving new institutions without addressing existing inefficiencies could lead to “academic redundancy and financial strain.”
He emphasized that government focus should now be on consolidating and strengthening the capacity of existing universities to deliver quality education.
Stakeholder Reactions
The announcement has drawn mixed reactions from stakeholders across the education sector.
1. Support from Education Reform Advocates
Several education reform groups have praised the decision, describing it as a step toward accountability and efficient governance. They argue that tying funding to performance will compel institutions to improve recruitment, academic programs, and infrastructure.
2. Concerns from Affected Institutions
On the other hand, administrators of smaller federal schools fear that losing TETFund support could lead to further decline. They argue that low enrollment often stems from factors beyond their control, such as inadequate facilities, poor location, and limited program options.
Potential Impact on Students and Communities
The withdrawal of funding from under-enrolled institutions could have ripple effects across local economies. Many of these universities serve as major employers and development anchors in their host communities.
Without TETFund support, such schools may face difficulty maintaining facilities or hiring qualified staff, indirectly affecting students’ learning experience.
Ministry’s Call for Institutional Reforms
The Ministry of Education has urged affected schools to review their academic structures and enhance marketing efforts to attract more students. Institutions are encouraged to diversify programs, adopt digital learning systems, and forge partnerships with industries to boost relevance.
Professor Ahmad stressed that “institutions must evolve and innovate to survive in today’s competitive education landscape.”
Public Perception and Trust Deficit
Experts believe that rebuilding public trust is crucial. Many parents view new federal universities as “experimental” and lack confidence in their academic credibility. Addressing this perception will require consistent quality assurance, accreditation improvements, and visible success stories from graduates.
Link Between Funding and Institutional Competitiveness
The proposed policy is expected to make universities more accountable. By tying funding to enrollment performance, institutions will have stronger incentives to deliver value and attract students through quality education, innovative research, and improved facilities.
This competitive approach could gradually raise the overall standard of tertiary education in Nigeria.
The Way Forward
While the policy’s intention is commendable, experts warn that its success will depend on fair implementation. They advise the government to consider contextual factors such as regional inequality, security challenges, and resource limitations before enforcing funding cuts.
Investments in digital infrastructure, student loans, and academic partnerships could also help balance the system and support growth in smaller institutions.
Conclusion
The Federal Government’s plan to cut TETFund allocations to under-enrolled tertiary institutions signals a new phase in Nigeria’s education reform. While the move aims to promote accountability and efficiency, it also highlights deeper structural challenges within the sector — including public perception, resource imbalance, and uneven access to quality education.
For the policy to yield meaningful results, both the government and institutions must collaborate to create a balanced framework that prioritizes quality, fairness, and inclusivity.
FAQs
1. What is the purpose of TETFund in Nigeria?
TETFund provides financial support to public tertiary institutions for infrastructure, research, and academic staff development using a 2% tax from company profits.
2. Why is the Federal Government linking funding to enrollment?
The government wants to ensure efficient use of public funds and encourage institutions to attract more students through quality and innovation.
3. Which institutions are most affected by the new policy?
Smaller federal universities, polytechnics, and colleges with fewer than 1,000 students are most at risk of losing TETFund support.
4. When will the new policy take effect?
The implementation is expected to begin in 2026, after a review and consultation process with stakeholders.
5. Will the policy improve Nigeria’s education quality?
If properly implemented, the policy could enhance accountability and competitiveness, leading to stronger academic standards across institutions.
