40% IGR deduction: Tinubu seeks support for varsities at FUTA convocation

President Bola Tinubu has called on stakeholders to join hands with the government in assisting universities in the country.

The President noted that the education sector should not be left in the hands of the government alone, saying all stakeholders must develop the sector.

He made the call on Saturday during his address at the 32nd Convocation of the Federal University of Technology, Akure, Ondo State.

Represented by a visiting professor of the National Universities Commission, Prof King-David Yawe, the President said due to the capital-intensive nature of the university education, there was a need for joint efforts by the stakeholders, particularly in the area of research funding.

He said, “We are all aware that university education is capital-intensive. For adequate funding, therefore, all stakeholders have a role to play.

“Suffice it to say that the government alone cannot do the funding. I, therefore, call on the organised private sector operators and international partners to collaborate with our universities and research institutes in the areas of research funding and utilisation of research outputs for national integration and development.

“This will also rub on our graduates in the areas of value addition, experience, hands-on training, exposure and less expenditure on employees’ engagement and training. If this kind of learning environment is achieved, we will have students who will be well-focused, and eschew all forms of violence and other anti-social behaviours. Hence, I believe that today’s graduates have been certified not only for their academic standing but also for being worthy.”

The President also enjoined all the organised labour unions in the universities to cooperate with the government to deliver the needed development by ensuring an atmosphere of peace and tranquillity on the campuses.

“On our part, we will ensure that motivational activities are put in place to ensure improved productivity. Reciprocative actions would be expected from our universities as the government works hard to raise the bar of conducive teaching and learning environment. To whom much is given, much is expected.

“Dialogue, patience, and positive engagements are better means of achieving results than strike actions. Industrial disharmony does nothing but disrupt life, waste time and elongate the academic calendar. Therefore, all avenues for dialogue must be explored and exhausted before strike actions are considered, and as the last resort,” Tinubu said.

While congratulating the graduating students, Tinubu reiterated that the Students Loan Bill signed into law would enable indigent students in all tertiary institutions to have access to interest-free loans which they would pay back at their convenience in future when they are gainfully employed.

In her remarks, the Vice Chancellor of FUTA, Prof Adenike Oladiji, urged the graduating students to be good ambassadors of the university and to always project the image of FUTA wherever they go.

Recall that the Federal Government had said it would start to implement of a 40 per cent automatic deduction from internally generated revenues of federal universities and other partially-funded institutions.

The FG added that the policy of 40 per cent auto-deduction of gross IGR “is in line with the Finance Circular with reference number FMFBNP/OTHERS/IGR/CRF/12/2021 dated December 20, 2021.”

The circular limits the annual budgetary expenditure from IGR of the partially funded federal government.

The information was contained in a letter that was issued by the Accountant-General of the Federation, Mrs Oluwatoyin Madein, to the universities titled, ‘Implementation of 40% automatic deduction from internally generated revenue of partially funded federal government institutions.’

The letter on implementation of the policy dated October 17, 2023 and addressed to vice-chancellors of universities was approved by the minister of Finance and coordinating minister of the economy, Wale Edun.

However, President Tinubu stopped the move this week.