…Says FG owes agency N323bn since 2011
Mr Sonny Echono, the Executive Secretary of the Tertiary Education Trust Fund (TETFund) on Tuesday said the Federal Government is owing the Fund the sum of N323 billion and clarified that there was no missing fund as being alleged in some quarters
Echono made this known at a public hearing on the alleged missing N2.3 trillion in TETFUND organised by an Ad hoc Committee of the House of Representatives.
The House of Representatives had last week set up the Committee, headed by Hon Busayo Oluwole Oke to investigate the alleged abuse of N2.3 trillion generated from the TETFund from 2011 to 2023.
However the Executive Secretary, who appeared before the Ad hoc Committee on Tuesday, said the allegation was not true.
He however, said the actual sum generated from education tax from 2011 to 2022 was N2.476 trillion out of which the Federal Inland Revenue Service (FIRS) retained N99 billion as cost of collection.
Echono noted that the Federal Government since 2013 had borrowed N371.3 billion from the Fund out of which it had paid N48 billion so far.
He said,“We do have challenges but these challenges have nothing to do with fraud. They are basically issues of governance and I would start by explaining what the challenges are so we can have a clear picture of what we are talking about.
“From the year 2011 to 2022 total education tax collected by the FIRS as presented to us in their documentations, as confirmed from the statements we received from the Central Bank of Nigeria (CBN) which we have also attached for the Committee to peruse is N 2, 476, 733, 181, 679.75.
“Out of this amount, a total sum of 99 billion was retained by FIRS as cost of collection leaving a balance of 2.37 trillion. So the total fund that had hit education pool account at the CBN is 2.3 trillion from 2011 to date
“However, the FG over time in the course of governance and to meet pressing needs has borrowed funds from these accounts. The total borrowing is approximately N371.339 billion. These borrowings happened over time and most of the borrowings started in 2013.
“The federal Government acknowledges that it was borrowing and we’ve full documentation of this and all the correspondence that accompanied it. Other borrowings since then are being tabulated and given to you. We did secure presidential approval for the refund of this borrowing since 2015 and the FG has been refunding albeit in piecemeal.
“To date total borrowing is over N371 billion. But total repayment to this date is about N48 billion. Last year 12.8 billion was given to us, this year another 12.89 billion was given to us. They are just paying. God knows how long this will take to defray the principal amount.”
He called on the Ad hoc Committee to assist the Fund in recovering the money.
He also noted that consultations are ongoing to suspend foreign scholarships as a result of the current exchange rate.
He said that the tax accruable to the fund is generated by Federal Inland Revenue Service (FIRS) and the fund’s account is domiciled in the Central Bank of Nigeria (CBN).
Echono said that some of the tax comes in foreign currencies to CBN but when it is time to pay fees for scholars abroad, the apex bank insists on TETFUND source forex by itself.
He said, “We operate a system where our forex is being sold on our behalf at an official rate and we apply like anybody else to get it, sometimes it leads to additional cost,” he said.
He urged the committee to intervene and compel the CBN to allow TETFUND access to forex to pay fees as at when due.
“Currently as I speak, we’re in consultations with all our stakeholders to suspend foreign training for a year or two. This is because of the recent exchange rate adjustments, we are unable to continue based on our disbursement guideline. The money we allocated in naira cannot cover the dollar requirement for training.Those who are currently there, we now need more naira to pay for the dollar that is required for their annual fees. We are trying to put a hold.”
He said they had earlier decided that only limited courses where they do not have capacity in Nigeria Institutions will qualify for foreign sponsorship.
“Most of our training now will be done locally through our experienced, first-generation universities and other specialized universities based here. This way we can retain our resources in house and cope with the change of foreign exchange variation,” he said.
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