President Bola Tinubu has decided to cancel the contentious 40% Internally Generated Revenue (IGR) deduction from federal universities across the country.
The President, represented by the Minister of Education, Tahir Mamman, made this announcement on Friday during the 75th Founder’s Day ceremony at the University of Ibadan.
Describing the policy implementation as “ill-timed,” Tinubu emphasized that the current struggles faced by universities make it an inappropriate moment for such deductions.
Pledging commitment to the reform of the nation’s education sector, Tinubu stated, “The 40% IGR automatic deduction policy stands cancelled.”
The Federal Government had initially communicated its intention to implement the 40% deduction in a letter dated October 17, 2023. The letter, signed by the Accountant-General of the Federation, Mrs Oluwatoyin Madein, and Director of Revenue and Investment, Felix Ore-ofe Ogundairo, cited a Finance Circular from December 20, 2021.
Reacting to this development, the Committee of Vice Chancellors of Nigerian Universities expressed their dissatisfaction by writing a protest letter to the Federal Government. The committee, through its Secretary-General, Prof. Yakubu Ochefu, argued that the government’s demand for 40% of varsities IGR was unjust, especially considering the lack of autonomy granted to these institutions.
Ochefu highlighted the contradiction with the Finance Act of 2020, which specifies that 40% could only be remitted to the federal government if there was a surplus. He pointed out that universities, relying solely on user charges from students, were grappling with funding challenges rather than enjoying surpluses.
In response to the potential consequences, Ochefu warned that parents might bear the brunt of the decision. He stated, “If they insist, it means they want to ground the universities to a halt. Or we will be forced to add the 40% to what we are charging the end users, and these end users are complaining already.”
Meanwhile, the Academic Staff Union of Universities (ASUU) also opposed the requirement for public tertiary institutions to remit 40% of IGR to the federal government, adding another layer of resistance to this controversial policy.
