Private schools based in Abuja are set to experience an unparalleled rise in fees, driven by the recent decision of Federal Capital Territory Minister, Nyesom Wike, to escalate operational charges for educational establishments in the city.
As part of the new tax regulations, schools are slated to be invoiced according to a formula that factors in both student tuition and enrollment count, adding a layer of complexity to the billing structure.
A memo authored by Mudi Muhammed, the Head of Account at the Department of Quality Assurance in the Education Secretariat, obtained on Monday, outlines that the implementation of this development is on track for 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.’
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Meanwhile, the National Association of Private School Owners in the FCT, articulating their apprehensions in a letter to the Education Secretariat, expressed skepticism about a tax reassessment at a time when the Federal Government vowed to eradicate multiple taxes.
They asserted that such a move could heighten the economic barrier to education for many parents, potentially exacerbating the prevalence of out-of-school children.
NAPPS, in a letter endorsed by Chairperson Ruqayah Agboola, pointed out that the tax reassessment would heighten the financial burden on private schools in the FCT, leading to an escalation in their operational expenditures.
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.’
Speaking confidentially with journalists, a member of the association disclosed the association’s strategy to draft a letter to Minister Nyesom Wike of the FCT while also apprising the Parents-Teachers Association of the recently enforced tax.