In a move to secure autonomy for all Nigerian institutions, the Federal Government has commenced the implementation of a 40 percent deduction of Internally Generated Revenues (IGRs) of Federal Universities and other partially funded institutions across the country.
It was gathered that the auto-deduction policy of gross IGR is in line with the Finance Circular, dated December 20, 2021, whereas the circular limits the annual budgetary expenditure from IGR of the partially funded federal government.
This was contained in a letter dated October 17, 2023, and titled: Implementation of 40% automatic deduction from internally-generated revenue of partially-funded federal government institutions by the Accountant-General of the Federation, Mrs. Oluwatoyin Madein, to the universities, signed by director of Revenue and Investment, Office of the Accountant-General of the Federation, Felix Ore-ofe Ogundairo.
The letter referred to varsities vice-chancellors, which was assented to by the Minister of Finance, Wale Edun, stated: I am directed to inform you that the Hon. Minister of Finance and Coordinating Minister of the Economy has approved the implementation of a 40% auto-deduction from the Gross Internally-Generated Revenue (IGR) of all partially-funded Federal Government institutions, in line with the Provision of Section 62 of Finance Act, 2020 with effect from November 2023.
Ogundairo said, Agencies/parastatals to not more than 50% of their gross IGR and the remittance of 100% of the remaining 50% to the Sub-recurrent Account. All statutory revenue lines like Tender Fees, Contractors Registration Fees, Disposal of Fixed Assets, Rent on Quarters, etc. shall be remitted 100% to the Sub-recurrent Account.
Consequently, all partially funded Agencies/Parastatals must align their budget requirements and ensure total compliance with the provision of Section 62 of Finance Act, 2020 and Finance Circular, 2021.
Earlier, the Federal Government, through the Minster of Education, Tahir Mamman, said it was giving varsities full autonomy to explore sources of financing their activities.
