Following the blacklash that greeted the planned policy, President Bola Tinubu has swiftly cancelled the 40 per cent automatic deductions from internally generated revenues (IGR) of federal universities.
Tinubu announced the cancellation on Friday at the ongoing 75th Founder’s Day ceremony at the University of Ibadan (UI)
According to him, the policy is inappropriate at this period of time.
President Tinubu who was represented by the Minister of Education, Tahir Mamman, pledged his commitment to the reform of the education sector as the base for national development.
He said, “The 40 per cent IGR automatic deduction policy stands cancelled. This is not the best time for such policy since our universities are struggling.”
Meanwhile, earlier in his welcome address, the UI Chancellor and Sultan of Sokoto, Sa’adu Abubakar, had condemned the policy, citing the multidimensional challenges confronting the universities.
Abubakar urged the authorities to abrogate the decision, saying the policy had the potential of jeopardising the university system.
Recall that a leaked memo addressed to the heads of the universities by the government had disclosed that commencing from November, universities will have 40 per cent of revenues generated internally and deposited in their accounts will be deducted automatically by the government via the Treasury Single Accounts (TSA).
A copy of the memo addressed to the office of the vice-chancellor of the University of Abuja by the Revenue and Investment Department of the Office of the Accountant General of the Federation in the Federal Ministry of Finance, notified the institution of automatic deduction of 40 per cent of its IGR by the government.
Dated 17 October with Reference R&I/2045/T/252, and signed by the Director of Revenue and Investment Department, Felix Ogundairo, the letter noted that the decision which affects all partially funded government agencies and parastatals including universities is in line with the provisions of Section 62 of Finance Act 2020.
