The Federal Government has directed public universities to fund academic staff allowances through their Internally Generated Revenue (IGR), sparking fears of nationwide tuition increases as institutions run out of funds to sustain the payments.
The Federal Government under President Bola Ahmed Tinubu has directed public universities across the country to begin funding lecturers’ statutory allowances using their Internally Generated Revenue (IGR). This policy shift was exposed through an internal memo obtained by SaharaReporters from Modibbo Adama University, Yola, which revealed that the Federal Ministry of Education instructed vice-chancellors nationwide to source funds internally to cover the Consequential Adjustment and Transport Allowance (CATA) for academic staff. The directive has raised immediate alarms across the tertiary education sector, with institutional stakeholders warning that shifting the burden of staff remuneration onto individual universities will inevitably trigger massive tuition increases nationwide.
The leaked circular, dated May 18, 2026, and signed by Modibbo Adama University’s Bursar, Hanien N. Ayuka, announced the immediate suspension of the CATA payment because the institution’s independent revenue streams have been completely depleted. According to the memo, the university had complied with the education minister’s mandate since January 2026, anticipating central financial reinforcements that never materialized. “It could be recalled that the Minister of Education in a letter addressed to ALL Vice Chancellors directing them to source funds from their respective IGR and immediately implement the payment of CATA allowance to ALL deserving Academic staff with effect from January 2026,” the circular read. “You are aware, this University has been paying the CATA allowance as directed with effect from January 2026 from its Internally Generated Revenue (IGR). The cash backing however has not been made available up till this moment. Consequently, the University is unable to sustain the continued payment of the CATA allowance and will henceforth suspend the payment until the Federal Government of Nigeria sends the necessary cash backing. The suspension takes effect this May 2026.”
This development has plunged several public universities into deep financial crises, aggravating friction between institutional administrators and chapters of the Academic Staff Union of Universities (ASUU). A senior lecturer at the Yola-based institution, who spoke anonymously, disclosed that school managements are already holding emergency meetings to adjust their service charges and student fees upward before the next academic session. “The lecturers are stranded because universities cannot continue to sustain these payments from IGR alone,” the source stated, highlighting the growing frustration within the academic community. “The reality now is that many universities will increase tuition fees by next session because the government has practically told them to fund themselves. In a recent meeting, the school resolved that fees may go up next session so the university can continue funding itself since the government is not willing to help them.”
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