President Tinubu has cancelled 40% IGR deduction from universities.
Newsonline Nigeria reports that President Bola Tinubu has announced the cancellation of the 40% deduction from the internally generated revenue of federal universities.
This Nigeria news platform understands that the President said the policy implementation is shelved because it was ill-timed given the economy challenges the country is currently facing.
READ ALSO: Oil Marketers, NNPCL trade words over fuel scarcity in parts of Nigeria
Speaking at the University of Ibadan’s (UI) 75th Founder’s Day ceremony on Friday, Mr. Tinubu’s words were conveyed by the Minister of Education, Tahir Mamman.
“The 40 per cent IGR automatic deduction policy stands cancelled. This is not the best time for such policy since our universities are struggling,” he said.
Meanwhile, Newsonline Nigeria had earlier reported that a letter dated October 17, 2023 directed to university leaders from the Nigerian government reveals the new directive.
Starting this November, the government plans to automatically deduct 40% of the internally generated revenues deposited in university accounts through the Treasury Single Accounts (TSA).
The Revenue and Investment Department of the Office of the Accountant General of the Federation in the Federal Ministry of Finance sent the memo to the University of Abuja’s vice-chancellor, informing the institution about a government decision to automatically deduct 40% of its Internally Generated Revenue (IGR).
The memo reads in part: “It is important to emphasise that this policy of 40 per cent auto deduction of gross IGR is in line with the Finance Circular Reference Number FMFBNP/OTHERS/IGR/CRF/12/2021/ dated 20th December 2021, limiting the budgetary agencies or parastatals to not more than 50 per cent of their gross IGR and the remittance of 100 per cent of the remaining 50 per cent to the sub-recurrent account.
“While all statutory revenue lines like Tender fees, contractors’ registration fees, disposal of fixed assets, rent on quarters, etc, shall be remitted 100 per cent to sub-recurrent accounts.”
