The automatic deduction of forty percent from the Internally Generated Revenues (IGR) of federal universities has been declared by President Bola Tinubu.
At the 75th Founder’s Day event of the University of Ibadan (UI) in Ibadan on Friday, Tinubu announced this.
The President Tinubu, accompanied by the Minister of Education, Tahir Mamman, stated that the timing of the policy’s implementation was inappropriate and mentioned the difficulties facing universities.
As the cornerstone of national prosperity, Tinubu vowed in his speech as a visitor to the institution to change the country’s educational system.
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He said: “The 40 per cent IGR automatic deduction policy stands cancelled. This is not the best time for such a policy since our universities are struggling.
“We know that this law was enacted in 2020, and the circular was issued in 2021, but this is not a good time for such a policy.”
In keeping with the government’s 2030 education vision and the African Union’s 2063 aim, Tinubu reaffirmed his commitment to the education sector.
The President stated that the goal of introducing student loans was to guarantee that no student would be denied an education because of financial hardship.
He said, “The Federal Government is bringing more innovation to reform the entire education sector for curriculum review at all levels from primary to basic education with the reintroduction of skills to attend to out-of-school menace.”
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Remember that the Nigerian government disclosed in a leaked memo to the heads of the universities that starting in November, the government would automatically deduct 40% of the internal revenue generated by the universities and deposited into their accounts through Treasury Single Accounts (TSA).
A copy of the memo from the Revenue and Investment Department of the Office of the Accountant General of the Federation in the Federal Ministry of Finance, addressed to the Office of the Vice Chancellor of the University of Abuja, informed the institution that the government would automatically deduct 40% of its IGR.
The letter, which was signed by Felix Ogundairo, the Director of the Revenue and Investment Department and dated October 17 with reference R&I/2045/T/252, the letter disclosed 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.
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