President Bola Tinubu has taken a decisive step to stop the immediate implementation of a policy mandating the automatic deduction of 40 percent from the internally generated revenues (IGR) of federal universities.
This decision was announced by the Minister of Education, Tahir Mamman. during the ongoing 75th Founder’s Day ceremony of the University of Ibadan (UI) on Friday.
“The 40 percent IGR automatic deduction policy stands cancelled. This is not the best time for such a policy since our universities are struggling,” President Tinubu stated, highlighting the untimeliness of the policy.
The automatic deduction of 40 percent from the internally generated revenues (IGR) of federal universities was initially scheduled to commence in November. The policy aimed to deduct 40 per cent of internally generated revenues deposited in university accounts through the Treasury Single Accounts (TSA) mechanism.
A document dated October 17, referenced as R&I/2045/T/252 and signed by Felix Ogundairo, the Director of Revenue and Investment Department, outlined the decision affecting all partially funded government agencies and parastatals, including universities.
It cited compliance with Section 62 of the Finance Act 2020 as the basis for the policy implementation.