President Bola Tinubu has taken a significant step by announcing the cancellation of the automatic deduction of 40 percent from the Internally Generated Revenues , IGR, of Federal universities.
This bold decision was disclosed by the Minister of Education, Tahir Mamman, representing President Tinubu, during the ongoing 75th Founder’s Day ceremony at the University of Ibadan ,UI.
President Tinubu emphasized the inappropriateness of the policy in the current period, signaling a commitment to reforming the education sector for the sake of national development.
The move is seen as a proactive measure to address concerns and create a conducive environment for the growth and development of Federal universities in the country.
“The 40% IGR automatic deduction policy has been cancelled,” he said. Because our universities are struggling, such policies are not appropriate at this time.”
Earlier in his welcome address, Sa’adu Abubakar, Chancellor of the University of Ibadan and Sultan of Sokoto, had condemned the policy, citing the multifaceted challenges confronting universities.
Abubakar urged the authorities to abrogate the decision, saying the policy had the potential of jeopardising the university system.
Recall that a leaked memo addressed to the heads of the universities by the Nigerian government noted that from November, 40 percent of revenues generated internally and deposited into federal universities account will be deducted automatically by the government via the Treasury Single Accounts.
A copy of the memo addressed to the Office of the Vice Chancellor of the University of Abuja by the Revenue and Investment Department, Office of the Accountant General of the Federation in the Federal Ministry of Finance, notified the institution of automatic deduction of 40 percent 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.
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