FG Directs Federal Varsities to Begin Remitting 40 Per Cent of Their IGR to Its Coffer
The Federal Government has activated its policy compelling all federal universities to remit about 40 per cent of their Internally Generated Revenue (IGR) to its coffer.
Furthermore, the implementation of the policy is scheduled to begin this month.
The circular, which has been issued, limits the annual budgetary expenditure from IGR of the partially funded federal government institutions.
The Accountant General of the Federation, Mrs. Oluwatoyin Madein, has forwarded a circular to the institutions’ vice chancellor for immediate implementation.
She explained that the policy was in line with a finance circular dated December 20, 2021.
The accountant general further emphasized that the policy was approved by the Finance Minister, Wale Edun.
This was contained in a letter dated October 17, 2023, and titled ‘Implementation of 40% automatic deduction from internally generated revenue of partially funded federal government institutions’ by the Accountant-General of the Federation, Mrs. Oluwatoyin Madein, to the universities and signed by the director of Revenue and Investment, Office of the Accountant-General of the Federation, Felix Ore-ofe Ogundairo.
“I am directed to inform you that the Honourable Minister of Finance and Coordinating Minister of the Economy has approved the implementation of a 40% auto deduction from the Gross Internally Generated Revenue (IGR) of all Partially Funded Federal Government Institutions in line with the Provision of Section 62 of Finance Act, 2020 with effect from November 2023.
“Agencies/parastatals are to remit not more than 50 per cent of their gross IGR and the remittance of 100 per cent of the remaining 50 per cent to the Sub-recurrent Account.
Furthermore, all statutory revenue lines like Tender Fees, Contractor’s Registration Fees, Disposal of Fixed Assets, Rent on Quarters, etc shall be remitted 100 per cent to the Sub-recurrent Account.
“Consequently, all partially funded Agencies/Parastatals must align their budget requirements and ensure total compliance with the provision of Section 62 of Finance Act, 2020 and Finance Circular, 2021,” Ogundairo expressed.
Earlier, the federal government, through the Minister of Education, Tahir Mamman, said it was giving varsities full autonomy to explore sources of financing their activities.