Controversy Surrounds FG's Plan to Deduct 40% from University Revenues
The federal government, as outlined in a letter dated October 17, 2023, titled "Implementation of 40% automatic deduction from internally generated revenue of partially-funded Federal Government institutions," plans to initiate this deduction starting from November 2023.
AKACHI NOEL 
The Federal Government's recent decision to automatically deduct 40% from the Internally Generated Revenue (IGR) of Nigerian universities has sparked controversy. The Academic Staff Union of Universities (ASUU) and the Committee of Vice Chancellors of Nigerian Universities strongly oppose this move, considering it an attack on the university system. The federal government, as outlined in a letter dated October 17, 2023, titled "Implementation of 40% automatic deduction from internally generated revenue of partially-funded Federal Government institutions," plans to initiate this deduction starting from November 2023.
The letter, signed by the Accountant-General of the Federation, Mrs. Oluwatoyin Madein, and the Director of Revenue and Investment at the Office of the Accountant-General of the Federation, Felix Ore-ofe Ogundairo, cites the auto-deduction policy of gross IGR as in line with a Finance Circular dated December 20, 2021. However, ASUU contends that universities primarily collect user charges rather than IGR and believes that deducting 40% from these subsidised charges could destabilize the financial stability of the institutions.
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ASUU National President, Prof. Emmanuel Osodeke, finds it disheartening that the government intends to collect from subsidised charges on student ID cards, hostel accommodation, lab coats, and more. He argues that universities are not revenue-generating agencies and emphasizes the need for increased government funding. Osodeke calls upon parents, students, and the Nigerian public to unite against what he perceives as an attack on the universities.
The Secretary-General of the Committee of Vice-Chancellors of Nigerian Universities, Prof. Yakubu Ochefu, highlights that universities typically charge user fees, not IGR. He states that universities are already operating at a deficit, and a 40% deduction would further endanger their financial stability. Ochefu questions the government's definition of IGR in the context of universities and calls for clear clarification from the Accountant-General of the Federation.
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ASUU and the Committee of Vice Chancellors of Nigerian Universities insist that if the federal government wishes to deduct 40% from university-generated revenues, it should fully fund these institutions. They view universities as service providers rather than profit-making entities and fear that the deduction could have severe financial consequences for the universities. Both organizations plan to engage with relevant government agencies to address their concerns.
The controversy continues to unfold as stakeholders in the education sector await further developments and clarification from the government.
