By Abu Faisal

Nigerian President Bola Tinubu has rescinded the controversial policy that proposed a 40% deduction of internally generated revenues from federal universities across the nation.

The announcement was made by the Minister of Education, Tahir Mamman, who represented the President at the 75th Founder’s Day ceremony of the University of Ibadan on Friday.

The President deemed the policy’s implementation as “ill-timed,” considering the economic challenges currently faced by the universities.

“The 40 per cent IGR automatic deduction policy stands cancelled. This is not the best time for such a policy since our universities are struggling,” Tinubu stated, reaffirming his pledge to reform the nation’s education system as a crucial element for national development.

The Federal Government had initially planned to start deductions from November 2023, as indicated in a letter dated October 17, 2023. The letter, signed by Accountant-General of the Federation, Mrs Oluwatoyin Madein, and Felix Ore-ofe Ogundairo, Director of Revenue and Investment at the Office of the Accountant-General, claimed that the policy aligned with a Finance Circular issued in December 2021.

The proposed policy had sparked criticism from the Committee of Vice Chancellors of Nigerian Universities, which issued a protest letter demanding a reversal of the policy. Committee Secretary-General, Prof. Yakubu Ochefu, argued that the proposed deductions would impact parents and students as universities would likely pass the cost onto them. He further pointed out that the 2020 Finance Act allows for surplus deductions, but universities, which predominantly rely on user charges from students, do not generate a surplus.

The Academic Staff Union of Universities (ASUU), in a statement signed by its president, Emmanuel Osodeke, also expressed concerns that the policy would further strain the already financially challenged public universities.

The reversal of the policy, coming days after the organised labour had backed out of a nationwide strike will go a long way in calming nerves of workers who are still agitating for improved emoluments.