IMPACT OF EDUCATION TAX FUND IN TERTIARY INSTITUTIONS IN NIGERIA (CASE STUDY OF ALVAN IKOKU FEDERAL COLLEGE OF EDUCATION)
This study is primarily concerned with finding out the impact of education tax fund (ETF) in tertiary institutions in Nigeria. In the course of this study, three research questions were mapped out to guide the researchers and related litures were also reviewed in this study. The research design was descriptive survey method and the population comprises of all the lecturers, students and management staff of Alvan Ikoku Federal College of Education Owerri, Imo State.
The sampling technique used was simple random sampling technique for students with the same sample size of 200 and purposive sampling technique for lecturers and management staff with a sample size of 10. The data generally was analysized with simple percentage and the result showed that education tax fund has not really impacted much on our tertiary institutions as they still have a lot of work to do on meeting its statutory obligations sound internal control system and consideration of students opinion before approving any school project. Based on the findings, the following recommendations were made, that the haring ratio of fund by education tax fund (ETF) should be according to number of students admitted per session and the level of development of a particular institution.
Also, the accounts of education tax fund (ETF) should be audited twice a year, independent corrupt practices commission (ICPC) should always investigate corrupt activities in education tax fund (ETF) and accounts of stewardship of members of board of trustees should be presented to the floor of national assembly once a year.
TABLE OF CONTENTS
Title page – – – – – – – – – – i
Approval page – – – – – – – – – ii
Dedication – – – – – – – – – iii
Acknowledgement – – – – – – – – iv
Abstract – – – – – – – – – – v
List of tables and graphs
Table of contents – – – – – – – – vi
1.1 Background of the study – – – – – –
1.2 Statement of the problem – – – – –
1.3 Purpose of the study – – – – – –
1.4 Research question – – – – – – –
1.5 Statement of hypothesis
1.6 Significance of the study – – – – – –
1.7 Scope of the study – – – – – – –
1.8 Limitations of the study – – – – – –
1.9 Definition of terms – – – – –
2.0 Literature review
2.1 Precursors of education tax degree
2.2 The nature of education tax fund
2.3 Objective of education tax fund
2.4 The structure and management of the fund
2.5 Problem of education tax fund
2.6 Effects of education tax fund
3.0 Research design and methodology
3.1 Introduction – – – – – – – –
3.2 Research design – – – – – – –
3.3 Sources of data/method of data collection – –
3.4 Population of the study and sample size – – –
3.5 Sample techniques – –
3.6 Validity of instrument –
3.7 Method of data analysis – – – – – –
4.0 Presentation and analysis of data
4.1 Introduction – – – – – – – –
4.2 Presentation of data – – – – – – –
4.3 Analysis of data – – – – – – –
4.4 Test of hypothesis
4.5 Interpretation of data
5.0 Summary of findings, conclusion and recommendations
5.1 Introduction – – – – – – – –
5.2 Summary of finding – – – – – –
5.3 Conclusion – – – – – – – –
5.4 Recommendation – – – – – – –
5.5 Suggestion for further studies
Reference – – – – – – – – –
Appendix – – – – – – – – –
1.1 BACKGROUND OF THE STUDY
Funding of education cannot be discussed without the knowledge of education itself therefore education has been defined by various scholars.
According to Okonkwo (2010) education can be defined as “a cultural action directed at creating attitudes and habits considered necessary for participation and intervention in one’s historical process.
In the view of Uche (2013) “education is the process of training and developing the mental, potential, physical knowledge, skills and character of individuals by formal and informal schooling”.
In our own view, education can be defined as a tool, which enables an individual to live effectively and efficiently for him and the society at large. The Nigerian education system comprises of 6-3-3-4 that is the six years in primary school and three years for the junior level of the secondary school, three years in the senior secondary and four years in the tertiary institution (depending on the course of study).
The tertiary institution plays a significant role in the domain of manpower development. According to the national policy on education (1981:5-38), tertiary institutions “are those institutions that cover the post secondary section of our national education system, which is given in universities, polytechnics and colleges of education, the advanced teacher training colleges, correspondent colleges and institutions as may be allied to them”.
Over the years, the tertiary institutions has suffered due to poor finding. According to Ozurumba (2010:106) “the best education could be easily aborted if not supported by adequate funds” inadequate funding has been the contaminating problem in Nigeria.
To this end, testing institutions need finance to carry out research in medicine, engineering, education etc. training and retraining of lecturers acquiring of facilities and other amenities that can improve student potentials to the overall achievements of the aims and objectives of higher education in Nigeria.
In Nigeria education history between 1932 and 1962 there were five higher institutions viz: university of Nigeria Nsukka, University of Ibadan, Ahmadu Bello University, Yeba higher college and University of Lagos. Funding of these institutions was not a problem because our country’s economy was one of the strongest amongst the third world countries.
Compared to the country’s population of 55.65million in 1963, the number of undergraduates were about 8,800, that is to say the country had very few undergraduates, hence, as a result of ample job opportunities for graduates, there came to be increase in demand for higher education.
Uche (2011:134) said that “over sixty tertiary institutions were established nation wide between 1970 and 1982. The funding of this higher institution rested squarely on the government which bore his neck-breaking burden without any compliant. Based on this, it could be observed that the funding of these institutions was principally shouldered by the government.
In support of this, Amadi (2010) pointed out that “during the oil boom the period of large profit in the petroleum oil sector, Nigeria was economically viable and there was boom in the financing of education. Many Nigerians received scholarship and bursary awards to enable them to be trained in various fields of education. New programmes and specialized areas were introduced and facilities for teaching and learning were provided.
The period of oil boom in 1980 was characterized by rapid disbursement of fund to institutions of higher learning as and when due, provision of money for research, oversea scholarship training and retraining of lecturers infrastructure apparatus for our laboratories etc.
However, like a flash in pan, the era of oil doom set in Uche (2014:135) said “by April 1989, there was a dramatic nose driving of the price of our major source of foreign exchange earner (oil). The colossal burden of financing the tertiary institutions become apparently uneasy and extremely unbearable.
To alleviate this gigantic burden president Ibrahim Babangida promulgated the education tax decree no 7 on 1st January 1993. According to Odicha (2012:20) “this decree finally impose education tax of two percent (2%) on all the profits declared by companies registered in Nigeria and established on education fund into which the tax collected shall be paid.
It is in the light of this, that this study has been designed to investigate the impact of education tax fund on tertiary institutions (A.I.F.C.E).