The Federal Government, FG, has commenced the deduction of 40 percent Internally Generated Revenues, IGR, of Federal Universities and other partially funded institutions across the country.
The auto-deduction policy of gross IGR is in line with the Finance Circular with reference number FMFBNP/OTHERS/IGR/CRF/12/2021 dated December 20, 2021.
The Federal Government has initiated a policy to deduct 40 percent of Internally Generated Revenues , IGR, from Federal Universities and other partially funded institutions across the country.
This policy, which aligns with the Finance Circular issued on December 20, 2021, aims to regulate the use of IGR by partially funded federal institutions.
In a letter dated October 17, 2023, titled ‘Implementation of 40% automatic deduction from internally generated revenue of partially funded Federal Government institutions,’ the Accountant-General of the Federation, Mrs. Oluwatoyin Madein, informed universities’ vice-chancellors about the implementation of this policy.
The letter was signed by the Director of Revenue and Investment at the Office of the Accountant-General of the Federation, Felix Ore-ofe Ogundairo, and received approval from the Minister of Finance, Wale Edun.
The policy involves the deduction of 40 percent of the Gross Internally Generated Revenue from these institutions, starting from November 2023.
The remaining 60 percent is to be used to finance their budgetary requirements and other expenditures. All statutory revenue lines such as Tender Fees, Contractor’s Registration Fees, Disposal of Fixed Assets, Rent on Quarters, etc., should be fully remitted to the Sub-recurrent Account.
The policy is in accordance with the provisions of Section 62 of the Finance Act, 2020 and the Finance Circular.
It reflects the government’s commitment to regulate and manage the IGR of these institutions while granting them autonomy to explore other financing sources.
Crediblenews.ng
