The already troubled Nigerian Universities educational system is in for a bigger trouble. The 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. It was reported in some dailies that a memo to that effect dated October 17 with reference R&I/2045/T/252 and entitled “Implementation of 40% Automatic Deduction from Internally Generated Revenue of Partially Funded Federal Government Institutions.” signed by Felix Oreofe Ogundairo, director of Revenue and Investment, Office of the Accountant-General of the Federation was dispatched to all federal universities for immediate and total compliance.
The memo reads, “I am directed to inform you that the Honourable Minister of Finance and Coordinating Minister of the Economy (HMF&CME) 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 to not more than 50% of their gross IGR and the remittance of 100% (hundred percent) of the remaining 50% (fifty percent) to the Sub-recurrent Account. While all statutory revenue lines like Tender Fees, Contractor’s Registration Fees, Disposal of Fixed Assets, Rent on Quarters, etc. shall be remitted 100% (hundred percent) to the Sub-recurrent Account. Consequently, all partially funded Agencies/Parastatals must align their budget requirements and ensure immediate compliance with the provision of Section 62 of Finance Act, 2020 and Finance Circular, 2021.”
How does a government partially funding educational institutions demand such humongous percentage of IGR deduction? To say that the leadership of a country where N2.176 trillion Supplementary Appropriation Act was basically signed to fund profligacies and perks of the government officials ranging from $6.1 million allocation for a presidential yacht, $38 million for about nine presidential air fleet, Sport Utility Vehicles (SUVs) for the office of the First Lady and National Assembly members etc., is overtly insensitive is an understatement. How do the ill-equipped, poorly funded and poorly remunerated, cash trapped universities cope? Universities should not be the cash cow for funding inanities.
The Academic Staff Union of Universities (ASUU) has stoutly risen against the decision of the federal government over the proposed deduction. Miffed by the development, President of ASUU, Professor Emmanuel Osodeke, said his union could not understand what the government meant by IGR in the universities. He said universities globally are not revenue-generating institutions, adding that they generate only the costs of services rendered and items provided for students. Osodeke, who described the new policy as the government’s attempt to “strangle the poor,” said there is no revenue generated by any university. The union president said the universities have been struggling to provide basic amenities like water, electricity, and necessary infrastructure for teaching and learning. He said many universities receive less than 120 million annually from the federal government as funding support but that they spend more than N1 billion annually on electricity. If you talk to the management of the University of Ibadan, or OAU, or any other one, they will tell you they only get roughly N15 million a month from the government to run. Things like this never even happened during the military. If their children are in these public universities, would they ask for such a thing?”
Is this how Tinubu plans to renew hope and instil sanity in the polity? In fact, Tinubu like most leaders is suffering from hubris syndrome – a monstrous behavioural diseased which steals good reasoning and human empathy from those in power and positions of authority. Nigerian universities cannot breathe with this kind of suffocating tax policy of government. The only option available to fall back on by the universities is an increase in school fees and or introduction of unnecessary levies to burden poor students. This directive is not in the interest of growth and development of the education as it is ill-timed. Unfortunately, this is even happening when the 2009 agreement signed with ASUU is yet to be met by the same federal government.
Nigerian universities have engaged in both creative and the absurd to generate funds to survive. Some have bread bakery while others produce sachet water. It is out of place for a government that cares less about quality education and infrastructure to demand more from broke universities. This does not only show dearth of ideas but a pointer to finally over-burden, demoralise and kill the university system already ran aground. In as much as those in government have got enough to steal and send their children abroad for education, nobody sees anything awful in the policy. Universities are grounds for behavioural formation and citadels of learning not a business centre.
Universities are knowledge driven investment platforms designed to improve society and restore the dignity of the people. They offer more or less social services. Many countries like China, Singapore and India are said to have broken the cycle of poverty and under development by investing heavily in quality university education. The economies and human capital development of countries in this league have improved. Excellent research and developments are regularly churned out in various fields of human endeavours which provided answers and solution to societal needs.
When the government of Tinubu removed fuel subsidy without recourse to the ripple effect on the people and economy, his spin doctors argued that monies saved would be invested in education and other critical infrastructure. The usual empty assurances have turned out to be deceptive and blatant lies. Nigerians are yet to see any meaningful programme of government aimed at cushioning the effect of subsidy. It is evident that government at this time and age is ignorant of what the future holds for education and lacks the interest to raising the bar. If those in authority do, a paltry sum should not have been the allocation for education while presidential yacht gulps $6.1million. Nigerians are unlucky when it comes to the meaning of good governance. Hawks and wolfs in sheep clothing have been parading themselves as leaders since 1999. It does not make any policy sense to compel organisations known to have been poorly funded by government for years running to now become new source of funding to the same government.
Many universities in Nigeria without being immodest are glorified secondary schools. The choices before them in this matter – are to comply with government directives and self-destruct, live in total want; disobey government and face the consequences. Universities should not be turned into the beast of burden of an insensitive government whose agenda does not reflect or empathise with the stark and grave reality on ground. As it stands now, it is only by a dint of luck or magic of some sorts that the universities would be able to meet their obligations. In the final analysis, the legacy government invariably intends to leave is a complete fund-crisis situation in the university system. With this, it is clear that another industrial action is already in the offing. Therefore, government should as a matter of urgency devise better means of resolving this issue to ensure industrial harmony in the universities.
