President Bola Tinubu has swiftly canceled the implementation of the automatic 40% deduction from the Internally Generated Revenues (IGR) of federal universities.
The decision, communicated by the Minister of Education, Tahir Mamman, during the 75th Founder’s Day ceremony at the University of Ibadan, is attributed to the perceived inopportune timing of the policy.
Tinubu said
“The 40 per cent IGR automatic deduction policy stands cancelled. This is not the best time for such policy since our universities are struggling.”
Originally scheduled to take effect in November, the policy mandated that 40% of revenues generated internally by universities be automatically deducted through the Treasury Single Accounts (TSA).
The directive, outlined in a letter dated 17 October with reference R&I/2045/T/252, signed by the Director of Revenue and Investment Department, Felix Ogundairo, cited Section 62 of the Finance Act 2020 as the legal basis for the decision.
