Private School Owners In Abuja Fumes, Reject New Tax Regime By Nyesom Wike

The proprietors of Abuja-based private schools have rejected the decision of the Minister of Federal Capital Territory, Nyesom Wike, to increase their operation charges in the FCT.

 

The school owners noted that if the decision was not reversed, it would amount to an unprecedented increase in tuition fees which would affect the students and their wards.

 

According to a memo on Monday from the Education Secretariat’s Head of Account, Department of Quality Assurance, Mudi Muhammed, the development will take effect in January 2024.

 

The memo was titled: “Review of private school operation charges in FCT,” and it read: “ Following the approval of the Honourable Minister of the FCT for a review of operational charges (annual charge, accreditation, application, re-accreditation, commencement and recognition) payable by private schools in the FCT.

 

“You are by this letter informed that the old rate of charges cease to be valid as of 31/12/2023 and the new rate of charges effective 1/1/2024.

 

“Under the new rate, each school is billed according to the tuition charged and the number of enrollments. As a consequence, each school has its peculiar bill. You should also note that all application(s) are now N40,000.”

 

Meanwhile, in a letter to the Education Secretariat, the National Association of Proprietors of Private Schools (NAPPS) stated that such a tax review at a time when the Federal Government promised to eliminate multiple taxes would only raise the cost of education beyond the reach of many parents, increasing the number of out-of-school children.

 

In a letter signed by its Chairperson, Ruqayah Agboola, NAPPS stated that the tax revision would put further pressure on private schools in the FCT by increasing their operating costs.

 

The association said, “Unfortunately, our members rejected the proposal in its entirety. They cited the hard economy, the huge bank loans outstanding in their books, the unpaid fees by many owing parents, the many levies payable to local government and other agencies, and more importantly payment of their teachers’ salaries, other staff as well as maintenance of our infrastructure.

 

“Our members, therefore, plead that you use your good office to effect a 50 per cent reduction in the existing annual dues to enable your office to recover the outstanding dues. We will partner with you to achieve this.”

 

The new tax regime proposed by Wike would assess each institution based on student tuition and enrollment figures.