Nigerian universities have expressed their opposition to the federal government’s decision to deduct 40 per cent of their internally generated revenues (IGR) starting from November 2023. The government claims that the deduction is in line with the Finance Act of 2020, which requires partially funded public institutions to remit 40 per cent of their surplus IGR to the consolidated revenue fund.
However, the Committee of Vice Chancellors of Nigerian Universities (CVCNU) and the Academic Staff Union of Universities (ASUU) have argued that the policy is unjustified and detrimental to the academic sector. They say that universities are not revenue-generating entities, but social services that rely mainly on student fees and other charges to cover their operational costs. They also say that the government has not granted them autonomy to determine their own fees and budgets.
The CVCNU has written a protest letter to the Ministry of Education, asking it to intervene and stop the Ministry of Finance from implementing the deduction. The CVCNU says that if the government insists on the policy, it will either cripple the universities or force them to increase the fees for the students and parents, who are already struggling with the economic effects of the COVID-19 pandemic.
The ASUU has also condemned the policy, describing it as an attack on the university system and an attempt to strangle the poor. The ASUU says that universities are already underfunded and overtaxed by the government and that the deduction will further erode the quality of education and research in the country. The ASUU has called on the public to join them in resisting the policy and demanding adequate funding for the universities.
The policy has also drawn criticism from other stakeholders, such as the Senior Staff Association of Nigerian Universities (SSANU) and the National Association of Nigerian Students (NANS). They have accused the government of being insensitive and irresponsible, and of trying to destroy the educational sector.
The government has not yet responded to the protests, but some analysts have suggested that the policy is part of its efforts to increase its revenue base and reduce its fiscal deficit, which has been worsened by the COVID-19 crisis and the decline in oil prices. However, they have also warned that the policy could backfire and have negative consequences for the economy and society, as it could hamper the development of human capital and innovation in the country.
Despite the challenges facing the academic sector, some universities have shown resilience and excellence in their performance. For instance, the University of Ibadan recently ranked among the top 500 universities in the world, according to the Times Higher Education World University Rankings 2023. The university also produced the first Nigerian to win the Nobel Prize in Literature, Professor Wole Soyinka, who celebrated his 90th birthday this year.
Source: Business Day
