President Bola Tinubu has announced a reversal of the Federal Government’s plan to deduct 40 percent from the Internally Generated Revenue of higher institutions of learning in the country.
Tinubu while speaking Friday at the 75th Founder’s Day ceremony of the University said the policy has been cancelled.
“The 40 per cent IGR automatic deduction policy stands cancelled. This is not the best time for such policy since our universities are struggling,” said Minister of Education Tahir Mamman who stood in for President Tinubu.
Last week a leaked memo from the Revenue and Investment Department of the Office of the Accountant General of the Federation in the Federal Ministry of Finance notified the institutions of the government’s automatic deduction of 40 per cent of its IGR from November.
The letter dated 17 October with reference R&I/2045/T/252, and signed by the Director of Revenue and Investment Department, Felix Ogundairo, noted that the decision, which affects all partially funded government agencies and parastatals, including universities, was in line with the provisions of Section 62 of Finance Act 2020.
Reacting to the development, both the Academic Staff Union of Universities, ASUU, and its counterpart, the Colleges of Education Academic Staff Union, COEASU, have issued official statements asking the Federal Government to remove their institutions from the list of agencies expected to remit 40 per cent of their Internally Generated Revenue.
The Committee of Vice Chancellors of Nigerian Universities has also written a protest letter to the Federal Government, demanding that the government rescind the plan to deduct 40 per cent of the Internally Generated Revenues of federal universities.
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