The Academic Staff Union of Universities (ASUU) and the Committee of Vice-Chancellors of Nigerian Universities criticize the Federal Government’s plan to automatically deduct 40% from universities’ Internally Generated Revenue (IGR).
The government, citing the Finance Act of 2021, plans to implement the deduction from November 2023.
ASUU President, Prof. Emmanuel Osodeke, deems it disheartening, emphasizing universities’ non-profit nature.
Osodeke argues against collecting from subsidised charges on items like ID cards, hostel accommodation, lab coats, and more, highlighting that universities are not revenue-generating entities.
He calls for resistance from parents, students, and the public, stating that ASUU will engage with relevant government agencies.
On the other hand, Prof. Yakubu Ochefu, the Secretary-General of the Committee of Vice-Chancellors, reveals that the deducted amount has recently increased from 25% to 40%.
He questions the government’s definition of IGR, pointing out that universities mainly rely on user charges, not profits.
Ochefu warns that a 40% deduction would lead universities toward financial catastrophe, given their existing deficits. He suggests the government fully fund universities if it wishes to collect such a percentage of generated funds.
The Committee of Vice-Chancellors plans to consult with the Ministry of Education, the Accountant General, and other stakeholders to address the concerns raised by the proposed deduction.
