The Federal Government of Nigeria has announced a new policy that tertiary institutions enrolling fewer than 1,000 students will no longer qualify for funding from the Tertiary Education Trust Fund (TETFund) starting in 2026. This decision, revealed by the Minister of State for Education, Prof. Suwaiba Ahmad, at the 2025 Policy Meeting in Abuja, aims to optimise the use of public resources by restructuring the funding framework to favour institutions with larger student populations.
Prof. Ahmad questioned the fairness of distributing equal funds to schools with vastly different enrollment sizes, urging institutions to increase their student numbers to meet the minimum benchmark to continue accessing TETFund support. The government had initially set the minimum enrollment threshold at 2,000 students earlier in 2025 but reduced it by 50% following pressure from institutional leaders.
The policy has caused anxiety among smaller institutions, especially those with very low enrollments, such as the Federal Polytechnic Ohodo in Enugu State, which reportedly has just 65 undergraduate students. Many of these institutions rely heavily on TETFund, which accounts for over 80% of their infrastructural and academic development funding.
In response to the policy, federal institutions have been mandated to publish key data, including student population figures, on their websites to ensure transparency. However, questions remain about how the policy will apply to institutions owned by state governments or other subnational entities.
Stakeholders warn that the funding cut could threaten the financial stability and academic programmes of smaller schools, as many owners have deferred infrastructural development responsibilities to TETFund. Conversely, some view the move positively, believing it will compel underperforming or complacent institutions to improve or face defunding.
This policy shift comes amid broader reforms in Nigeria’s tertiary education sector, including increased budget allocations to TETFund and a focus on maintaining existing infrastructure rather than new construction. The government is also pushing institutions to raise admission standards and improve academic quality, signaling a drive toward more efficient and accountable use of education resources nationwide.