The statement made by the president was announced by Tahir Mamman, the Minister of Education, during his speech on Friday at the 75th Founder's Day celebration of the University of Ibadan (UI).
"The automatic deduction policy of 40% of IGR is canceled. Considering the difficulties facing our universities, this is not the ideal time for such a policy. stated Tinubu.
The original plan was for the policy to start in November. The government would automatically take 40% of internal revenue generated by universities and deposit it into their accounts through Treasury Single Accounts (TSA).
The letter, dated October 17 and bearing reference R&I/2045/T/252, was signed by Felix Ogundairo, Director of the Revenue and Investment Department. It stated that the decision, which is applicable to all partially funded government agencies and parastatals, including universities, is compliant with Section 62 of the Finance Act 2020.