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By Gabriel Dike
The Academic Staff Union of Polytechnics (ASUP) says the Ministry of Finance has classified tertiary institutions in the country as government revenue generating agencies.
In a statement dated January 3, 2024 and signed by the new ASUP President, Comrade Shammah Kpanja said the finance ministry in a recent circular classified polytechnics and other institutions as revenue generating agencies of the Federal Government.
He said the Federal Ministry of Finance in a circular dated December 28th, 2023 classified tertiary institutions in the country as revenue generating agencies of government.
His words: “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 IGR of partially funded federal government institutions.”
According to him, 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 government’s classification of revenue generating agencies/agents of the government.
Kpanja stressed that following the outcry from the nation, the President directed the 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.
“At the heart of our union’s worry is the continued classification of these tertiary institutions as “revenue generating agencies/agents of the Federal Government.
“We view this an embarrassingly poor understanding of the workings and indeed the well documented deplorable funding status of these tertiary institutions by the Federal Ministry of Finance.”
ASUP president reminded the ministry that tuition fees are forbidden in the nation’s tertiary institutions as a policy of the government.
Kpanja said the 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 added: ‘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.”
The president called for the exclusion of tertiary institutions in general and polytechnics in particular from this circular, noting, “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.”
Kpanja urged the Federal Government to rather devise means of increasing funding to the tertiary institutions and treat as part of the social service sectors in dire need of resuscitation and stability.
