FG’s Directive On 50% Automatic Deduction Of IGR From Public Owned Entreprises Unsettles ASUP
The Academic Staff Union of Polytechnics (ASUP) has expressed dissatisfaction over a recent circular emanating from the Federal Ministry of Finance, conveying the implementation of Presidential Directives on 50% Automatic Deduction from Internally Generated Revenue of Federal Government Owned Enterprises.
President of ASUP, Shammah Kpanja raised concerns in a statement on Thursday, where he described the policy as similar to the initial directive of deduction of 40% of the “Internally Generated Revenue of partially funded federal government institutions”.
He lamented that rather than exploring means for more funding of tertiary institutions, government was planning on milking them of meagre resources gotten from rendering services to students.
According to Kpanja “Our Union’s attention has been drawn to the finance circular issued by the Federal Ministry of Finance on the 28th of December, 2023 conveying implementation of “Presidential Directives on 50% Automatic Deduction from Internally Generated Revenue of Federal Government Owned Enterprises.
“This circular is similar to the one issued in October 2023 where the Federal Government conveyed its plans to commence the deduction of 40% of the “Internally Generated Revenue of partially funded federal government institutions”.
ASUP argued that both circulars included heads of tertiary institutions established and owned by the Federal Government in the distribution implying that the Federal Tertiary Institutions are included in the Federal Government’s classification of revenue generating agencies/agents of the government.
“We are equally aware that following the outcry from the nation, the President directed a suspension of the policy in Federal Tertiary Institutions.
“We are therefore surprised and worried that the Federal Ministry of Finance is issuing yet another circular to this effect presumably overriding the Presidential directive on the issue as there no reports yet indicating that the President has lifted the suspension”.
He expressed worries of the continued classification of these tertiary institutions as “Revenue Generating Agencies/Agents of the Federal Government”, adding that it is an embarrassing poor understanding of the workings and indeed the well documented deplorable funding status of these tertiary institutions by the Federal Ministry of Finance.
Kpanja stated that tuition fees are forbidden in the nation’s tertiary institutions as a policy of the government.
He noted that these institutions survive on the meager allocations for capital, overhead and personnel costs from the government with support from interventionist agencies like Tertiary Education Trust Fund.
He explained that the fees charged by these institutions which is currently and erroneously tagged as IGR are charges for specific services to students.
“We are indeed worried by this unwelcome end of the year “gift” by the Federal Ministry of Finance as same is a clear invitation to anarchy in these tertiary institutions. As a matter of fact, no Polytechnic in the country can survive with this poorly thought out policy of classifying tertiary institutions as revenue generating agencies.
“We are therefore calling for the exclusion of tertiary institutions in general and Polytechnics in particular from this circular. This call is borne from the need to save the institutions and Polytechnics in particular from foreseen capitulation with its severe ripple effect and consequences on staff, students and society at large.
“The Federal Government should rather devise means of increasing funding to these tertiary institutions as they should be treated as part of the social service sectors in dire need of resuscitation and stability”.
