Abuja private school owners seek Wike’s intervention over 5% tax regime

The National Association of Proprietors of Private Schools (NAPPS), Federal Capital Territory (FCT) chapter has rejected the new tax regime imposed on its members by the Department of Quality Assurance (DQA) under the FCT Education Secretariat.

In a letter of appeal by NAPPS which was made available to Tribune Online signed by its Chairperson, Rukayat Agboola and addressed to the Minister FCT Minister, Nyesom Wike, the association said the new regime will lead to increase in the number of children that will drop out of school and add to the already large numbers.

According to NAPPS chairperson, the newly implemented tax system, as outlined by the Directorate of Quality Assurance (DOQ), has inadvertently put a heavy burden on private schools their locations within the FCT notwithstanding.

The Head of Account, Department of Quality Assurance of the Education Secretariat, Mudi Muhammed, in a memo which he signed and titled: ‘Review of Private School(s) Operation Charges in the FCT’ read, “Following the approval of the Minister of the FCT for a review of operational charges (annual charge, accreditation, application, re-accreditation, commencement and recognition), 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.”

However, the school owners, in their letter, expressed worries about the financial strain and tax regime on schools as well as the parents who will bear the brunt of the additional and accrued costs which they argued will lead to increase in the number of out-of-school children within the FCT and environs adding that except the Minister stops the Department of Quality Assurance from implementing the 5 percent charge, drastic review of school fees is imminent.

“Charging or increasing any fee in the education sector amounts to waging economic war on the parents who obviously will bear the burnt of any additional levy on private schools.

“It is very funny that the FCT Education secretariat is introducing a new tax at a time when the presidential committee on tax reform has promised investors that it will harmonise multiple taxes in order to bring about the ease of doing business in Nigeria.

“In our previous engagement with the DOQ, we highlighted the adverse effects of this tax on parents and schools, emphasizing the potential rise in the out-of-school children population due to economic hardships faced by families.

“Despite our efforts to advocate against the tax, we were disheartened to learn of its approval, as conveyed through a circular by the Head of Accounts.

“Honorable Minister, the burden of taxes and levies on FCT private schools has become overwhelming, leading to the frustration and closure of many institutions.

“Considering the current economic challenges, we earnestly appeal for your kind intervention to protect private school proprietors as essential partners in the quest for mass education in the FCT,” the letter read.