MTN, 15 Others Remit N54bn in Education, Police Taxes

Sixteen listed companies on the Nigerian Exchange remitted a combined N54.97bn in education tax and N81.33m in Nigerian Police Trust Fund levy to the Federal Government in the first half of 2025, a sharp rise from N32.52bn in education tax and N15.13m in police levy recorded in the same period of 2024, an analysis by The PUNCH of their financial statements has shown.

The data, obtained from the unaudited financial statements of 16 companies for the six months ended 30 June 2025, filed on the Nigerian Exchange Limited, show the scale of contributions from leading corporations. These include MTN, Seplat, Lafarge Africa, BUA Cement, Nestle Nigeria, Presco Plc, Transcorp Hotels Plc, Beta Glass Plc, Fidson Healthcare, Ikeja Hotel, UPDC Plc, Geregu Power Plc, Conoil, Totalenergies, Nigerian Aviation Handling Company Plc, and Nascon Allied Industries Plc.

According to a report by PwC titled ‘Companies operating in Nigeria to pay a new Police Fund Levy’, the Nigerian Police Trust Fund Act (the “Act”) was passed by the National Assembly in April 2019 and signed into law by the President on June 24, 2019. The Act establishes a Fund, the proceeds from which will be used to train police personnel and procure security machinery and equipment. The Act imposes a levy of 0.005 per cent of the “net profit” of companies operating business in Nigeria.

According to the Federal Inland Revenue Service, the Education tax is now governed by the Tertiary Education Trust Fund (Establishment, Etc.) Act 2011 imposed on all companies registered in Nigeria. The rate of the tax is two per cent of assessable profit due date for filing the tertiary education tax returns is the same as that of CIT and PPT. The tax is an allowable deduction in computing the assessable profits of companies engaged in petroleum operations(Upstream). Funds derived from the tax are used for rehabilitation, restoration, and consolidation of tertiary education in Nigeria by the Tertiary Education Trust Fund.

In the period under review, MTN Nigeria Communications Plc led contributions among major companies, remitting a total of N20.19bn to the Federal Government in the first half of 2025. This comprised N20.16bn in education tax and N31m in Nigerian Police Trust Fund levy, compared with zero contributions in the same period of 2024, representing a significant jump.

Seplat Energy Plc followed closely with N17.49bn, including N17.46bn in education tax and N28m in police levy, up from N4.76bn in education tax and N11m in police levy in the corresponding period of 2024. This translates to a year-on-year growth of 267 per cent. Lafarge Africa Plc contributed N6.77bn, with N6.76bn in education tax and N6.63m in police levy, rising sharply from N1.55bn in education tax and N1.46m in police levy in the first half of 2024. The company’s remittances reflect a 336 per cent year-on-year increase.

BUA Cement Plc paid N3.59bn, including N3.58bn in education tax and N10.74m in police levy, up from N991.16m in education tax and N1.08m in police levy in the same period of 2024, representing a significant growth of 262 per cent. Nestle Nigeria Plc remitted N2.35bn in education tax, compared with N1.59bn last year, marking a 48 per cent increase, alongside N3.48m in police levy.

Presco Plc contributed N1.74bn in education tax, up from N1.40bn in the previous year, reflecting a 24 per cent rise, while no police levy was recorded. Transcorp Hotels Plc paid N365.77m in education tax, rising from N319.54m in the first half of 2024, showing a growth of 14 per cent, with no police levy recorded.

Beta Glass Plc contributed N828.13m in education tax, compared with N109.40m in the first half of 2024, representing a 657 per cent increase. The company did not remit any police levy during the period. Fidson Healthcare Plc remitted N269.77m in education tax, up from N67.72m in the corresponding period of 2024, reflecting a 298 per cent rise, with no police levy recorded.

Ikeja Hotel paid N126.13m in education tax, up from N65.14m last year, a 94 per cent increase, with no police levy contribution during the period. UPDC Plc contributed N60.19m in education tax, rising sharply from N3.72m in the first half of 2024, reflecting a 1,518 per cent increase, while its police levy increased to N106,000, up from N7,000, representing a 1,414 per cent rise.

Geregu Power Plc paid N412.54m in education tax, down from N1.14bn in 2024, representing a 64 per cent decline, while its police levy fell to N1.32m, compared with N1.51m in the previous year. Conoil remitted N34.41m in education tax, down from N255.47m in the same period last year, indicating an 87 per cent decline. Its police levy also dropped to N57,000, compared with N511,000 previously, reflecting an 89 per cent fall.

TotalEnergies contributed N120.91m in education tax, compared with N1.03bn last year, showing an 88 per cent decrease, while its police levy recorded a negative adjustment of N84, down from N1.53m in 2024. Nigerian Aviation Handling Company Plc paid N6.07m in education tax, compared with N637.09m last year, representing a sharp 99 per cent decline, while no police levy was recorded.

Nascon Allied Industries Plc contributed N698.38m in education tax, up from N216.93m in the first half of 2024, representing a 222 per cent increase, with no police levy recorded.

Commenting on this, the Executive Chairman, Centre for Anti-Corruption and Open Leadership, Debo Adeniran, faulted the Federal Government and public institutions over the lack of accountability in the utilisation of billions of naira contributed by quoted companies on the Nigerian Exchange through the Tertiary Education Trust Fund and the Nigerian Police Trust Fund levy.

The stakeholder, who spoke in a phone interview with The PUNCH about the recent disclosures of remittances by blue-chip companies, questioned why Nigerian public universities still lack livable hostels and basic facilities despite the huge inflows.

He said, “There is no reason why a country like Nigeria, with its natural and industrial resources, should not be able to fund tertiary education institutions. Most students still pay for hostels, courses, and other services directly and indirectly, while billions contributed by companies are not properly accounted for.”

According to him, over 60 per cent of released funds often end up in private pockets due to systemic corruption, while essential areas like security and tertiary education remain underfunded. He stressed that TETFund allocations should go directly to tertiary institutions, while police levies should strengthen national security.

He further accused the government of operating under a veil of secrecy, noting that funds released are rarely traced or reported transparently. “Our security is so important, and significant contributions have been made by these blue-chip companies. The government should be compelled to account for these monies through the Freedom of Information Act,” he added.

The stakeholder also said private sector players are often intimidated into silence and rarely question the utilisation of their contributions, while some institutions have resorted to selling landed properties despite receiving TETFund allocations. He called on Civil Society Organisations to intensify efforts in tracking the flow and application of the funds to ensure transparency, accountability, and adequate service delivery.

Also, in a WhatsApp chat with The PUNCH, the Country Director of Accountability Lab, Friday Odeh, raised concerns over weak oversight and poor policy enforcement in the utilisation of billions of naira remitted by companies into the Tertiary Education Trust Fund and the Nigerian Police Trust Fund.

The expert said that despite significant contributions from corporate Nigeria, systemic gaps continue to undermine the impact of these funds. “The disconnect lies mainly in ineffective oversight mechanisms and poor enforcement of policies. Funds are remitted, yet challenges remain because of limited coverage, private universities, for instance, are excluded from TETFund benefits, inefficient allocation, mismanagement with personal or political undertones, and a lack of inclusiveness in funding policies,” he explained.

According to the expert, there is a need for improved public disclosure through platforms such as the Open Government Partnership, stronger oversight mechanisms, and strict enforcement measures to tackle mismanagement and corruption.

“Private sector involvement is crucial and should actively push for reforms that prioritise transparency, performance accountability, and inclusive, open disbursement of statutory levies. This is essential to ensure that funds collected translate into tangible improvements in the education and police sectors.”

Also, the Executive Director of the Rule of Law and Accountability Advocacy Centre, Okechukwu Nwanguma, has criticised the Federal Government over the poor utilisation of billions of naira remitted annually by companies into the Tertiary Education Trust Fund and the Nigerian Police Trust Fund, saying the problem lies in weak governance and lack of accountability rather than inadequate resources.

Nwanguma, in a WhatsApp chat with The PUNCH, noted that despite the huge remittances, public universities continue to suffer dilapidated infrastructure while the police force remains underfunded.

He identified three major gaps: weak transparency, leakages and mismanagement, and poor monitoring and evaluation. According to him, there is little clarity on how funds are allocated and disbursed, while political interference and corruption divert resources away from intended projects. Even where funds are deployed, he added, there is little tracking of outcomes to ensure value for money.

“The issue is not a lack of resources but a lack of accountability, prioritisation, and independent oversight to guarantee impact,” he said. On the balance between statutory levies and corporate social responsibility, Nwanguma observed that companies are in a difficult position. He explained that while firms are compelled by law to pay statutory levies, many still commit additional resources to CSR projects in education and security because of the limited impact of government spending.

He added that some companies treat statutory levies as compliance costs and direct CSR to meet immediate community needs, while others align CSR projects with national priorities such as scholarships, ICT labs, or community policing support to complement government interventions.

“Ultimately, CSR cannot substitute for effective governance of statutory funds. For real impact, there has to be greater transparency and collaboration between government, corporate contributors, and civil society so that statutory funds deliver, and CSR plays a complementary, catalytic role,” he said.

Commenting further, the Executive Director Civil Society Legislative Advocacy Centre, Auwal Rafsanjani, urged the Federal Government to ensure proper utilisation of revenues generated from the Nigerian Police Trust Fund, saying misallocation and corruption have weakened the country’s policing system.

Speaking on the need for accountability, the source said the lack of transparency has hindered improvements in both education and security sectors, noting that funds meant for public services are often diverted, leaving institutions underfunded and services ineffective.

“The money generated is not properly applied because of misallocation, corruption, and looting. This is why, despite huge budgets, the quality of education and policing remains poor,” he said. He specifically criticised the police, saying inadequate funding has contributed to unprofessional conduct and public extortion. “When you deprive the police of proper funding, it affects their efficiency. A well-funded police force would act professionally, but currently, officers often extort the public and create inhumane conditions,” he added.

The stakeholder called for greater accountability in the application of police levies, warning that inadequate utilisation tarnishes the country’s image and undermines public trust. “It is important that these taxes be properly applied so that Nigeria can have a competent, professional police force. Right now, streets are often barricaded with tyres, and officers extort citizens, which is a disgrace to the nation,” he said.

He emphasised that improved transparency and proper allocation of funds could enhance policing, reduce public abuse, and restore integrity in Nigeria’s security institutions.