By Becky Usman

In response to mounting pressure, the Federal Government has decided to suspend the automatic deduction of 40% from the Internally Generated Revenue (IGR) of tertiary institutions. The reversal directive came from President Bola Ahmed Tinubu during the 75th Founder’s Day ceremony of the University of Ibadan, where he was represented by the Minister of Education, Tahir Mamman.

President Tinubu deemed the policy ill-timed, acknowledging the struggles of universities in the current economic climate. The 40% automatic deduction was initially set to take effect in November, affecting federal universities and other partially funded institutions. The decision was based on the provisions of Section 62 of the Finance Act 2020.

This policy announcement had sparked concerns about its potential negative impact on the already underfunded tertiary institutions and led to protests from various stakeholders. The Committee of Vice Chancellors of Nigerian Universities, Academic Staff Union of Universities (ASUU), and Colleges of Education Academic Staff Union (COEASU) were among the groups opposing the directive.

The suspension of the 40% IGR deduction is seen as a relief for universities and colleges, with critics arguing that such policies could exacerbate the challenges faced by the education sector. The government’s move to explore alternative funding mechanisms and address the broader issues affecting education in the country remains a subject of ongoing discussion and debate.