The federal government has initiated a policy to deduct 40% from the internally generated revenues (IGR) of federal universities and other partially-funded institutions. This policy, outlined in a Finance Circular dated December 20, 2021, seeks to limit the annual budgetary expenditure of these institutions.
The decision, communicated through a letter from the accountant-general of the federation, Mrs. Oluwatoyin Madein, has left universities and institutions in dismay. The implementation of this policy is set to commence in November 2023, in alignment with the Finance Act, 2020.
While the government had earlier hinted at granting universities more autonomy in financial matters, this recent development has caused uproar among educational stakeholders. Critics argue that it will stifle the institutions’ operations, hampering their ability to undertake crucial infrastructure projects.
The policy’s implications extend to students as well, as universities may consider raising tuition fees to compensate for the revenue deduction. This could make education more expensive and lead to greater financial strain on students.