EXCLUSIVE: Tinubu Reverses 40% IGR Deduction From Universities

President Bola Tinubu has decided to cancel the contentious deduction of 40% of Internally Generated Revenues (IGR) from federal universities nationwide.

Represented by the Minister of Education, Tahir Mamman, Tinubu addressed the issue during the University of Ibadan’s 75th Founder’s Day ceremony on Friday, labeling the policy implementation as “ill-timed.” He emphasized that the current challenges faced by universities make it an inappropriate period for such a deduction.

In his capacity as the university’s Visitor, Tinubu expressed his commitment to reforming the nation’s education sector as a crucial foundation for national development. He stated, “The 40% IGR automatic deduction policy stands cancelled. This is not the best time for such a policy since our universities are struggling.”

The Federal Government, in a letter dated October 17, 2023, titled ‘Implementation of 40% automatic deduction from internally generated revenue of partially funded federal government institutions,’ had previously announced the deduction, scheduled to begin in November 2023.

Signed by the Accountant-General of the Federation, Mrs. Oluwatoyin Madein, and Director of Revenue and Investment, Office of the Accountant-General of the Federation, Felix Ore-ofe Ogundairo, the letter cited the auto-deduction policy of gross IGR in accordance with the Finance Circular issued on December 20, 2021.

Reacting to this, the Committee of Vice-Chancellors of Nigerian Universities has lodged a protest with the Federal Government, urging a reconsideration of the plan to deduct 40% of the Internally Generated Revenues of federal universities.

Prof. Yakubu Ochefu, the Secretary-General of the Committee of Vice-Chancellors, voiced concerns in a phone interview, emphasizing that demanding 40% of university IGR while denying them autonomy is contradictory. He warned that if the government proceeds with the policy, parents would bear the consequences.

Ochefu highlighted the Finance Act of 2020, which specified that 40% could only be sent to the FG if there was a surplus. He argued that universities operate with a lack of funding, receiving user charges from students rather than profits or revenues.

He stated, “If you look at the Act, it didn’t say 40% IGR, but a surplus. So, who determines what is surplus? The Finance Act of 2020 is explanatory, and it is the institution that is supposed to decide and send you the surplus if there is any.”

Furthermore, the Academic Staff Union of Universities (ASUU) has also opposed the requirement for public tertiary institutions to remit 40% of IGR to the FG. In a statement signed by its president, Emmanuel Osodeke, ASUU declared that this decision would further impoverish already struggling public universities.