Following strong resistance from various stakeholders, President Bola Tinubu has ordered the immediate cancellation of a policy empowering the Federal Government to automatically deduct 40% from the internally generated revenues (IGR) of federal universities.
The policy was scheduled to commence in November 2023. Critics had deemed it detrimental to the financial stability of public universities.
Citing wrong timing and multidimensional challenges confronting federal universities, President Tinubu intervened to halt the implementation of the policy.
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“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 at the 75th Founder’s Day ceremony of the University of Ibadan (UI) on Friday.
The president was represented at the event by the Minister of Education, Tahir Mamman.
The Academic Staff Union of Universities (ASUU) had kicked against the policy, saying the decision would impoverish already struggling public universities.
Speaking after the National Executive Council (NEC) meeting of ASUU Monday, the union’s president, Emmanuel Osodeke, said: “NEC reviewed the implications of the recent directive to Federal Universities to remit forty percent (40%) of their Internally Generated Funds (IGF) to the coffers of government.
“NEC condemns the directive in its entirety because it would further impoverish and emasculate the Nigeria university system.
“For the avoidance of doubt, universities are not revenue generating agencies because the obligatory fees paid by students are to provide the necessary tools for them to be properly educated.”