The Committee of Vice-Chancellors of Nigerian Universities has expressed strong opposition to the Federal Government’s proposal to deduct 40 percent of the Internally Generated Revenues (IGR) of federal universities. In a protest letter to the government, the committee demanded a reversal of the plan, emphasizing that the government cannot demand such a deduction when it has yet to grant autonomy to the universities.
Prof. Yakubu Ochefu, the Secretary-General of the Committee of Vice-Chancellors of Nigerian Universities, revealed in a phone interview that the government’s insistence on the 40 percent deduction from university IGR is unjustified, especially in the absence of institutional autonomy.
The Federal Government, through a letter dated October 17, 2023, titled ‘Implementation of 40% automatic deduction from internally generated revenue of partially funded federal government institutions,’ informed universities of the commencement of the deduction with effect from November 2023. The letter, signed by the Accountant-General of the Federation, Mrs. Oluwatoyin Madein, cited a finance circular as the basis for the auto-deduction policy.
Ochefu warned that if the government proceeds with the policy despite the plea by the Vice-Chancellors, parents will bear the consequences. He emphasized that universities operate differently from commercial entities and that any decision to deduct 40 percent would likely lead to an increase in fees borne by parents.
The Finance Act 2020, according to Ochefu, specifies that the 40 percent deduction can only occur if there is a surplus. However, he argued that universities are not generating surpluses but are facing funding challenges. He highlighted that universities depend on user charges from students and not profits or revenues.
The National President of the Academic Staff Union of Universities, Prof. Emmanuel Osodeke, echoed concerns about the proposed deduction, stating that universities are not properly funded, and parents are already grappling with the current fees. The union is currently in a meeting to decide on a course of action.