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FG Enforces 40% Tuition Fee Deductions for All Federal Universities and Institutions

In a pivotal financial development, the federal government has initiated a policy of deducting 40% of internally generated revenues (IGR) from federal universities and partially-funded institutions. This policy, in line with Finance Circular FMFBNP/OTHERS/IGR/CRF/12/2021, dated December 20, 2021, sets restrictions on the annual budgetary expenditures funded by the IGR of partially funded federal government institutions.

The official notification, titled ‘Implementation of 40% Automatic Deduction from Internally Generated Revenue of Partially Funded Federal Government Institutions,’ was conveyed through a letter issued by the Accountant-General of the Federation, Mrs. Oluwatoyin Madein, to the universities. Dated October 17, 2023, the letter addressed the Vice-Chancellors of universities and received approval from the Minister of Finance and Coordinating Minister of the Economy, Wale Edun. It was signed by Felix Ore-ofe Ogundairo, the Director of Revenue & Investment in the Office of the Accountant-General of the Federation.

Ogundairo, in his statement, announced, “I am directed to inform you that the Honourable Minister of Finance and Coordinating Minister of the Economy (HMF&CME) has approved the implementation of a 40% automatic deduction from the Gross Internally Generated Revenue (IGR) of all Partially Funded Federal Government Institutions, in line with the Provision of Section 62 of Finance Act, 2020, effective from November 2023.

“Agencies and parastatals are required to allocate not more than 50% of their gross IGR and remit 100% of the remaining 50% to the Sub-recurrent Account. Furthermore, all statutory revenue lines, such as Tender Fees, Contractor’s Registration Fees, Disposal of Fixed Assets, Rent on Quarters, etc., shall be remitted 100% to the Sub-recurrent Account.

“As a result, all partially funded Agencies/Parastatals must align their budget requirements and ensure full compliance with the provision of Section 62 of Finance Act, 2020, and Finance Circular, 2021.” This policy shift reflects the government’s efforts to streamline financial allocations and promote fiscal discipline in higher education.