President Bola Tinubu yesterday announced the cancellation of the controversial deduction of 40 per cent from the internally generated revenues of federal universities.
Speaking at the 75th founder’s day ceremony of the University of Ibadan, the president who was represented by the minister of education, Mr Tahir Mamman, said it was not the best time for the implementation of such a policy the universities are struggling.
Tinubu described the policy implementation as “ill-timed” and as a visitor to the university, pledged his commitment to the reform of the nation’s education sector which he described as “the bedrock for national development.”
“The 40 per cent IGR automatic deduction policy stands cancelled. This is not the best time for such a policy since our universities are struggling.”
A leaked memo addressed to the heads of the universities recently by the Nigerian government noted that commencing from November, universities will have 40 per cent of revenues generated internally and deposited in their accounts will be deducted automatically by the government via the Treasury Single Accounts (TSA).
Recall that a memo addressed to the office of the vice chancellor of the University of Abuja by the revenue and investment department of the office of the accountant general of the federation in the federal ministry of finance, had notified the institution of automatic deduction of 40 per cent of its IGR by the government.
The memo marked R&I/2045/T/252, dated 17 October and signed by the director of revenue and investment department, Mr Felix Ogundairo, the letter noted that the decision which affects all partially funded government agencies and parastatals including universities is in line with the provisions of Section 62 of Finance Act 2020.
“It is important to emphasise that this policy of 40 per cent auto deduction of gross IGR is in line with the Finance Circular Reference Number FMFBNP/OTHERS/IGR/CRF/12/2021/ dated 20th December, 2021, limiting the budgetary agencies or parastatals to not more than 50 per cent of their gross IGR and the remittance of 100 per cent of the remaining 50 per cent to the sub-recurrent account.
“While all statutory revenue lines like Tender fees, contractors’ registration fees, disposal of fixed assets, rent on quarters, etc, shall be remitted 100 per cent to sub-recurrent accounts,” it read in part.
The memo instructed the universities and other affected agencies of the government to align their budgets to the new realities.
