Prof. Bode Ayorinde, Pro-Chancellor, Achievers University, Owo
In most countries around the world, the education sector is treated as a national asset and regarded as the backbone of any nation. However, in Nigeria, universities are struggling under a mountain of taxes that threaten the quality of learning. At the 15th convocation of Achievers University, Owo, Ondo State, the Pro-Chancellor, Prof. Bode Ayorinde, made a passionate call for educational institutions to be exempted from all forms of taxation.
Speaking on the theme, “Rethinking taxation in the education sector: Why educational institutions should not be taxed,” Ayorinde revealed that levies such as company income tax, VAT, education tax, development levy, billboard and radio taxes, and personal income tax on proprietors gulp more than 40 per cent of tuition fees. He warned that this drains universities of the resources needed to offer scholarships, maintain free-tuition programmes, and make education accessible to all.
“Education is not just a social service; it is an investment in human capital,” he stressed. “Nations that deliberately invest in education reap productivity, innovation, and economic growth.” According to him, treating education like a business undermines the nation’s future.
Globally, the story is different. In Germany, for instance, public universities are fully funded and tuition-free, because education is regarded as a public good that drives social and economic development. “The finds come from the state governments,” said one expert. “This is to remove barriers to education for citizens and ensure the quality of education remains high,” he concluded. Germany, Finland, and Norway also provide strong state support, ensuring that universities focus on research, skills development, and innovation rather than chasing funding. Analysts say these models show that investing in education pays big dividends for nations in terms of global competitiveness.
Ayorinde cautioned that Nigeria risks moving in the opposite direction if the tax burden continues to rise. “Taxing universities inflates tuition, limits access, and stifles research and talent development,” he said. He noted that private universities in Nigeria exist to complement government efforts, not to make profits.
Policy experts agree. Around the world, governments treat universities as partners in national development. Taxing them runs counter to best practices and undermines the push to build a knowledge-driven economy. “To tax education,” Ayorinde warned, “is to tax enlightenment, opportunities, and the future of young Nigerians.”
As Nigeria battles an education gap, the call for tax-free universities is urgent and strategic. With thousands of students graduating every year from universities and private institutions that help bridge access gaps, what is needed are supportive policies to turn Nigeria’s universities into engines of national transformation, as in advanced countries. By treating education as an investment, not a business, Nigeria can groom talent, spark innovation, and build a nation where knowledge truly drives progress.
