President Bola Ahmed Tinubu has reversed the controversial policy of automatically deducting 40% from the internally generated revenues (IGR) of federal universities.
The decision, deemed ill-timed by the President, was disclosed during the 75th Founder’s Day ceremony of the University of Ibadan, with the Minister of Education, Tahir Mamman, representing President Tinubu.
President Tinubu, serving as the Visitor to the University, expressed his dedication to reforming the nation’s education sector, emphasizing the current challenges faced by universities. He declared, “The 40% IGR automatic deduction policy stands cancelled. This is not the best time for such a policy since our universities are struggling.”
Multiple sources at the event, including the Lagos Zonal Coordinator of the Academic Staff Union of Universities (ASUU), Adelaja Odukoya, confirmed the development.
Earlier, Sultan of Sokoto and Chancellor of the University, Sa’adu Abubakar, had criticized the policy, warning of its potential to disrupt the university system.
The controversial policy, revealed through a leaked memo from the Nigerian government, outlined the automatic deduction of 40% of IGR from universities’ accounts through the Treasury Single Accounts (TSA). Dated October 17, the memo cited the Finance Act of 2020, urging affected agencies to align their budgets with the new directive.
Reacting to the policy, ASUU President Emmanuel Osodeke questioned the definition of IGR in universities, arguing that universities globally are not revenue-generating institutions but rather incur costs for services and items provided to students. He described the policy as an attempt to “strangle the poor” and emphasized the universities’ struggles in providing basic amenities despite meager government funding.
Leaders from other unions, including the National President of the Senior Staff Association of Nigerian Universities (SSANU), Mohammed Ibrahim, and the National President of the Congress of Nigerian Universities’ Academics (CONUA), Niyi Sunmonu, strongly opposed the decision. They highlighted the detrimental impact on the already financially strained university system, calling for collective resistance against the policy.