President Bola Tinubu has announced the immediate cancellation of the automatic deduction of 40% from the internally generated revenues of federal universities, citing the ill-timed nature of the policy.
The president’s announcement was conveyed by the Minister of Education, Tahir Mamman, during his speech at the ongoing 75th Founder’s Day ceremony of the University of Ibadan, on Friday.
“The 40 per cent IGR automatic deduction policy stands cancelled. This is not the best time for such policy since our universities are struggling,” Tinubu said.
The policy was originally to commence in November.
Universities will have 40 percent of revenues generated internally and deposited in their accounts will be deducted automatically by the government via the Treasury Single Accounts.
Dated October 17, 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.