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President Tinubu cancels 40% IGR deduction from universities despite ASUU’s disapproval

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President Tinubu cancels 40% IGR deduction from universities despite ASUU’s disapproval

President Bola Tinubu has cancelled the deduction of 40 per cent of Internally Generated Revenues from federal universities in the country despite strong disapproval from the Committee of Vice Chancellors of Nigerian Universities as well as the Academic Staff Union of Universities (ASUU)

The President, represented by the Minister of Education, Tahir Mamman, expressed his view during the 75th Founder’s Day ceremony of the University of Ibadan, citing the policy as “ill-timed” and not appropriate given the current struggles of the universities.

Tinubu, as the visitor to the university, affirmed his commitment to reforming the nation’s education sector for sustainable national development and announced the cancellation of the 40 per cent IGR automatic deduction policy.

READ ALSO: Expert urges transparent, accountable IGR practices to enhance taxpayer compliance

The Federal Government had earlier communicated its intention to implement the deduction in a letter dated October 17, 2023, to partially funded federal government institutions, citing the Finance Circular dated December 20, 2021.

This decision has sparked concern and protest from the Committee of Vice Chancellors of Nigerian Universities, through its Secretary-General, Prof. Yakubu Ochefu.

The committee demanded a reversal of the plan, stating that the universities lacked surplus funds and depended primarily on user charges from students.

In response, the Academic Staff Union of Universities (ASUU) raised concerns about the potential impact of the decision on the financial status of public universities, emphasizing the risk of further impoverishing the institutions.

The government’s decision has continued to elicit strong reactions from stakeholders within the education sector, highlighting the importance and sensitivity of the issue.

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