President Bola Tinubu has ordered the cancellation of the automatic deduction of 40% from the Internally Generated Revenues (IGR) of federal universities.
Tinubu made this known on Friday at the ongoing 75th Founder’s Day ceremony of the University of Ibadan (UI) in Ibadan.
Represented by the Minister of Education, Tahir Mamman, the president 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.”
A memo addressed to the heads of the universities by the Nigerian government and which was allegedly leaked to the public noted that from November, federal universities will have 40% of revenues generated internally and deposited in their accounts 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% 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.