Emmanuel OchayiPresident Bola Tinubu has scrapped the controversial automatic deduction policy slashing 40% from federal universities’ internally generated revenues (IGR).
The cancellation, announced during the 75th Founder’s Day ceremony at the University of Ibadan, came as a relief to many within the academic community.
“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,” declared Tinubu through Minister of Education, Tahir Mamman, setting a new trajectory for financial operations within the academic sphere.
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The policy, outlined in a dated 17 October directive (reference R&I/2045/T/252) signed by Director Felix Ogundairo, had sent an uproar through the higher education sector.
It mandated a sizable deduction from the universities’ internally generated revenues through the Treasury Single Accounts (TSA), slated to commence in November.
Tinubu’s rationale for the abrupt cancellation highlighted the precarious situation of universities already grappling with various challenges.
“This decision,” stated the President, “will alleviate some of the financial pressures our universities are facing.”
The move reflects a responsive approach by the government to address the concerns raised by stakeholders, emphasizing the need for a more considerate and conducive financial framework to support the academic institutions’ growth and stability.
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