President Bola Tinubu has announced the cancellation of the automatic deduction of 40 per cent from the Internally Generated Revenues (IGR) of federal universities.
Tinubu made this known on Friday at an ongoing 75th Founder’s Day ceremony of the University of Ibadan (UI) in Ibadan.
President Tinubu, who was represented by the Minister of Education, Tahir Mamman, said the policy implementation is ill-timed, adding that universities are struggling.
In his speech as a Visitor to the university, Tinubu pledged his commitment to the reform of the nation’s education sector as the bedrock for national development.
He said: “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.
We know that this law was enacted in 2020, and the circular was issued in 2021, but this is not a good time for such a policy.”
Tinubu reiterated its commitment to the education sector in line with the 2030 education agenda of the government and African Union goal 2063.
The President noted that the introduction of student loans was to ensure that no student was left out of education due to poverty.
He said, “The Federal Government is bringing more innovation to reform the entire education sector for curriculum review at all levels from primary to basic education with the reintroduction of skills to attend to out-of-school menace.”
Recall that a leaked memo addressed to the heads of the universities by the Nigerian government noted that 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).
A copy of the 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 notified the institution of automatic deduction of 40 per cent of its IGR by the government.
Dated October 17 with reference R&I/2045/T/252, and signed by the Director of Revenue and Investment Department, Felix Ogundairo, the letter disclosed 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.
