Tinubu cancels 40% deduction from universities’ IGR

President Bola Ahmed Tinubu has backtracked on his earlier directive of 40 per cent deductions from universities’ internally generated revenues (IGRs) following outcry from various quarters.

President Tinubu cancelled the 40 per cent automatic deductions from internally generated revenues of federal universities, saying the policy is inappropriate at this period.

Tinubu, who was represented by the Minister of Education, Prof Tahir Mamman, stated this yesterday at an ongoing 75th Founder’s Day ceremony of the University of Ibadan (UI).

In his speech as the visitor to the country’s premier university, the president pledged his commitment to the reform of the education sector as the base for national development.

“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.

Recall that the federal government, in a letter dated October 17, 2023, tagged: ‘Implementation of 40 per cent automatic deduction from internally generated revenue of partially funded federal government institutions,’ said it would begin the deduction with effect from November 2023.

The letter, which was signed by the Accountant-General of the Federation, Mrs Oluwatoyin Madein, Director of Revenue and Investment, Office of the Accountant-General of the Federation, Felix Ore-ofe Ogundairo, said the auto-deduction policy of gross IGR was in line with the Finance Circular with reference number FMFBNP/OTHERS/IGR/ CRF/12/2021, dated December 20, 2021.

This, however, generated a lot of uproar by tertiary institutions, especially when the institutions have maintained that they are underfunded.