The administration of President, Ibrahim Babangida mindful of the reality of the situation took measures to arrest the rot.
The Longe Commission recommended among others the funding of higher education through earmarked tax to be borne by companies operating in Nigeria.
This was a homegrown solution to address issues of funding to rehabilitate decaying infrastructure, restore the lost glory of education and confidence in the system as well as consolidate the gains thereto; build the capacity of teachers and lecturers; teacher development; development of prototype designs; etc.
The main source of income available to the Fund is the two per cent education tax paid from the assessable profit of companies registered in Nigeria.
The Federal Inland Revenue Services (FIRS) assesses collects the tax on behalf of the Fund.