The Nigerian federal government has embarked on the implementation of a controversial policy that imposes a 40 percent automatic deduction from the internally generated revenues (IGR) of federal universities and partially-funded institutions.

This decision, aligned with the Finance Circular dated December 20, 2021, aims to limit the annual budgetary expenditure derived from IGR.

In a letter issued by the Accountant-General of the Federation, Mrs. Oluwatoyin Madein, the policy of a 40 percent auto-deduction was communicated to universities and institutions.

The letter, approved by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, was signed by the Director of Revenue & Investment in the office of the Accountant-General of the Federation, Felix Ore-ofe Ogundairo.

The new directive enforces that agencies and parastatals must remit up to 50 percent of their gross IGR, channeling the remaining 50 percent to the Sub-recurrent Account.

All statutory revenue lines, such as Tender Fees, Contractor’s Registration Fees, and Rent on Quarters, are to be remitted entirely to the Sub-recurrent Account.

While the federal government hinted at granting universities more autonomy to explore financing sources, this move has sparked controversy within the education sector.

Critics argue that the policy will stifle institutional activities, hinder critical projects, and potentially force institutions to increase fees, thereby impacting students and their families.

The National Association of Nigerian Students (NANS) has also voiced concerns, highlighting the potential repercussions for universities.

University authorities, meanwhile, argue that the policy contradicts the government’s perception of universities as revenue-generating entities while providing inadequate funding and inhibiting their development.

The policy raises questions about the government’s approach to education financing and may lead to increased financial strain on students.

35 exceptionally pupils hailing from public primary schools across the Niger Delta region have been granted the prestigious NNPCL-Shell Cradle-to-Career scholarships, covering their entire six years of secondary school education.

These bright young minds, hailing from Rivers, Delta, and Bayelsa States, recently wrapped up an intensive week-long orientation program aimed at honing their academic, character, and psychological skills, all in preparation for their seamless transition into new learning environments.

The 14th batch of scholars since the program’s inception in 2010, they have been placed in three renowned private institutions in Port Harcourt, Rivers State: Brookstone Secondary School, Jephthah Comprehensive College, and Bloombreed High School.

Igo Weli, General Manager Corporate Relations at The Shell Petroleum Development Company of Nigeria Limited, praised these students as the “35 shining stars of the Niger Delta,” having been selected through a highly competitive process that included aptitude tests.

“The Cradle-to-Career program is designed to bridge educational disparities arising from geographic and socio-economic differences while enhancing literacy levels in the Niger Delta region and Nigeria as a whole,” remarked Weli.

He further highlighted its contribution to the realization of UNESCO’s ‘Education for All’ goal and the development of a robust human resource base for Nigeria’s progress.

Rivers State Commissioner for Education, Professor Kaniye Ebeku, expressed his appreciation for the program and Shell’s commitment to offering the best education to pupils from underprivileged backgrounds.

He encouraged the scholars to focus on their goals and make the most of this opportunity to bring pride to their families and sponsors.

The NNPCL-Shell Cradle-to-Career scholarship is not just an investment in these 35 students, but also in the future of the Niger Delta and Nigeria as a whole.