How Kogi State’s Tax Rule Could Deny Indigent Students Access to Tertiary Education

In a move generating widespread criticism, the Kogi State Internal Revenue Service (KGIRS) has introduced a policy requiring students of state-owned tertiary institutions to present tax clearance certificates (TCC) as a condition for registration. The directive, issued via a circular dated November 26, 2023, titled “Enforcement of Tax Clearance as a Condition for Student Registration”, was signed by Sule Salihu Enehe, the chairman of KGIRS.

The policy, which was initially test-run at the Federal University Lokoja in 2023, aims to enforce tax compliance and boost state revenue. Proposed three years ago by the Secretary to the State Government (SSG), it is said to derive its legitimacy from section 24(f) of Nigeria’s constitution, which mandates citizens to declare income and pay taxes promptly. It also references section 85(4)(v) of the Personal Income Tax (PIT) Act, which allows ministries, departments, and agencies (MDAs) to request TCCs for specific transactions. However, the PIT Act does not explicitly include access to public education as one of those transactions.

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Critics Decry the Policy as Harsh and Discriminatory

The requirement has sparked backlash from rights activists, education stakeholders, and analysts who argue that it could deny access to education for indigent students and those from low-income families or outside the state. Critics highlight that the policy shifts the responsibility of parental or guardian tax compliance onto students, many of whom are adults or self-sponsoring their education.

“This policy assumes all students have accessible, tax-compliant parents or guardians, which is simply not the reality. It disregards students from estranged families, abusive homes, or orphaned and self-sponsoring individuals,” said Miliki Abdul, Executive Director at the Conscience for Human Rights and Conflicts Resolution.

Some view the measure as coercive and discriminatory, arguing that tying education to tax compliance could be unconstitutional and a violation of the right to education. Critics also stress the systemic problem of low tax compliance in Nigeria, which stems from distrust in government accountability and lack of a robust tax registry, should not be passed onto students.

Justification for the Policy

Defending the policy, Muhammad Idris, KGIRS’ Corporate Affairs Head, stated that it aims to justify the government’s subsidy on tertiary education and ensure parents or guardians fulfill their tax obligations.

“This policy is not about forcing anyone to pay extra money. It simply requires proof of tax compliance by whoever is responsible for the student’s upkeep—parents, guardians, or sponsors. Non-indigenes can even present TCCs from their home states,” Idris said.

According to him, the state gave ample time for institutions to sensitize stakeholders about the policy after the SSG’s circular was issued three years ago. He further noted that the policy applies to all state-owned institutions, including the state university, college of education, school of nursing, and school of health technology.

While the state government has not disclosed the exact amount of subsidies provided to tertiary institutions, it typically includes fee waivers, infrastructure development, and direct funding.

Revenue Targets and Enforcement Challenges

Kogi State’s quarterly budget reports for 2024 reveal that the government has achieved 78.7 percent of its projected N14.2 billion PIT revenue, collecting N11.3 billion by the third quarter. The government believes policies like the TCC rule are crucial for meeting revenue targets and shoring up state finances.

However, tax experts have pointed out the legal and ethical dilemmas of enforcing tax compliance through access to essential services. Oluwatoyin Ajilore-Chukwuemeka, an education policy expert, criticized the lack of stakeholder consultation, calling it an overreach.

“Tax compliance and education should not be connected. Students shouldn’t be penalized for their parents’ failings, especially in a country struggling to improve access to education,” she said.

Activists and Legal Pushback

Activists like Arome Odoma are preparing to challenge the policy’s legality in court, with a pre-action notice already filed against Governor Usman Ododo. The National Human Rights Commission (NHRC) has also warned the state government against infringing on citizens’ right to education under the guise of enforcing tax compliance.

Conversely, some tax lawyers argue that the policy is legally sound. Theophilus Emuwa stated, “Citizens must prove tax compliance to access government services, and students are no exception. This is a standard enforcement mechanism.”

Broader Implications for Education Equity

If the policy succeeds, it could set a precedent for other states to adopt similar measures, potentially altering the social contract between citizens and governments in Nigeria. Critics warn that such policies could exacerbate educational inequity, disproportionately affecting students from low-income or fractured families.

The impact on Kogi’s education sector remains to be seen, but the controversy surrounding the TCC rule underscores the complex interplay between revenue generation, tax compliance, and access to fundamental human rights.