Federal government has begun implementation of a 40 percent automatic deduction from internally generated revenues of federal universities and other partially-funded institutions.
The policy of 40 percent 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.
It was signed by the director of Revenue & Investment in the office of the Accountant-general of the Federation, Felix Ore-ofe Ogundairo.
Ogundairo said, “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 total compliance with the provision of Section 62 of Finance Act, 2020 and Finance Circular, 2021.”