An unprecedented increase in fees for private schools in Abuja is on the horizon as the Minister of the Federal Capital Territory, Nyesom Wike, has decided to raise operation charges for these schools. The new taxation framework, set to take effect from January 2024, involves billing each school based on both the tuition fees charged to students and the number of enrollments.
A memo titled “Review of private school operation charges in FCT,” issued by the Head of Account at the Department of Quality Assurance of the Education Secretariat, Mudi Muhammed, outlined the details of the revised charges. The memo, obtained by our correspondent on Monday, stated that the old rate of charges would cease to be valid as of December 31, 2023, and the new charges would be applicable from January 1, 2024. It emphasized that each school would now have a unique bill calculated based on tuition fees and enrollment numbers, with all applications set at N40,000.
Expressing concerns about the tax review, the National Association of Private School Owners in the FCT, in a letter to the Education Secretariat, argued that such a move contradicted the Federal Government’s promise to eliminate multiple taxes. The association, represented by its Chairperson, Ruqayah Agboola, contended that this tax adjustment would escalate the cost of education, making it unaffordable for many parents and potentially contributing to an increase in the number of out-of-school children. NAPPS also highlighted the added financial pressure on private schools in the FCT, as the tax review would lead to higher operational costs.
In their rejection of the proposal, NAPPS members cited economic challenges, outstanding bank loans, unpaid fees from parents, numerous levies payable to local governments and other agencies, and the need to cover teacher salaries, staff payments, and infrastructure maintenance. The association urged the Education Secretariat to use its influence to secure a 50 percent reduction in the existing annual dues, collaborating with them to recover outstanding dues.
Additionally, a member of the association, speaking anonymously, revealed plans to write to Minister Nyesom Wike and inform the Parents-Teachers Association about the newly imposed tax, underscoring the challenges faced by private schools in the current economic climate.
