JUST-IN: Tinubu Cancels 40% IGR Deduction From universities

• The memo instructed the universities and other affected agencies of the government to align their budgets to the new realities.
• Felix Ogundairo, the letter noted that the decision which affects all partially funded government agencies and parastatals including universities is in line with the provisions of Section 62 of Finance Act 2020.

The automatic deduction of forty percent from the Internally Generated Revenues (IGR) of federal universities has been declared by President Bola Tinubu.

At the 75th Founder’s Day event of the University of Ibadan (UI) in Ibadan on Friday, Tinubu announced this.

The President Tinubu, accompanied by the Minister of Education, Tahir Mamman, stated that the timing of the policy’s implementation was inappropriate and mentioned the difficulties facing universities.

As the cornerstone of national prosperity, Tinubu vowed in his speech as a visitor to the institution to change the country’s educational system.

He said: “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.”

Recall that a leaked memo addressed to the heads of the universities by the Nigerian government noted that from November, universities will have 40 per cent of revenues generated internally and deposited in their accounts will be deducted automatically by the government via the Treasury Single Accounts (TSA).

A copy of the memo addressed to the Office of the Vice Chancellor of the University of Abuja by the Revenue and Investment Department of the Office of the Accountant General of the Federation in the Federal Ministry of Finance, notified the institution of automatic deduction of 40 per cent of its IGR by the government.

Dated October 17 with reference R&I/2045/T/252, and signed by the Director of Revenue and Investment Department, Felix Ogundairo, the letter disclosed that the decision, which affects all partially funded government agencies and parastatals including universities, is in line with the provisions of Section 62 of Finance Act 2020.