The Federal Government has commenced the implementation of an automatic forty percent deduction of Internally Generated Revenues of Federal Universities and other partially funded institutions across the country.
According to the Punch, the auto-deduction policy of gross Internally Generated Revenues is in line with the Finance Circular dated December 20, 2021.
This was contained in a letter dated October 17, 2023, and titled ‘Implementation of forty percent automatic deduction from internally generated revenue of partially funded federal government institutions’ by the Accountant-General of the Federation, Mrs Oluwatoyin Madein, to the universities and signed by director of Revenue and Investment, Office of the Accountant-General of the Federation, Felix Ore-ofe Ogundairo.
Punch gathered that the Honorable Minister of Finance and Coordinating Minister of the Economy, Wale Edun approved the implementation of a forty percent 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.
“I am directed to inform you that the Honorable 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.”
“Agencies/parastatals to not more than 50 per cent of their gross IGR and the remittance of 100 per cent of the remaining 50 per cent to the Sub-recurrent Account. All statutory revenue lines like Tender Fees, Contractor’s Registration Fees, Disposal of Fixed Assets, Rent on Quarters, etc shall be remitted 100 per cent to the Sub-recurrent Account.”
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