FG begins implementation of new tax-free allowances for varsity teachers

Dr Tunji Alausa

Dr Tunji Alausa

Minister of Education, Dr. Tunji Alausa, has asked universities to commence the payment of the tax-free Consolidated Academic Tools Allowance (CATA) across the country in compliance with the agreement reached between the Federal Government and the university lecturers, 

The allowance, which ranges from over N1 million annually for graduate assistants and assistant lecturers to over N3 million for professors, is expected to bump up the take-home pay of university lecturers.

According to a memo by the Minister, all federal universities are to begin the payment of the CATA to academic staff, even as the 2026 budget approval process continues.

While emphasising the need to commence the payment, Dr Alausa, in the memo sent to all federal universities, noted that the tax-free allowance was part of the executed FGN-ASUU 2025 Agreement.

He said: “The payment of this allowance is explicitly captured in the executed FGN-ASUU 2025 Agreement, which has been duly circularised by the National Salaries, Incomes and Wages Commission with effect from January 1, 2026.”

He directed federal university authorities to mobilise available resources to ensure prompt implementation.

“I request that all university authorities utilise available resources to ensure the approved CATA is paid without delay, in full compliance with the NSIWC circular and the provisions of the FGN-ASUU Agreement,” he stated in the memo.

The Minister highlighted the broader impact of timely payment, adding, “The prompt implementation of this allowance will demonstrate the Federal Government’s commitment to honouring duly negotiated agreements, promote industrial harmony, boost staff morale and strengthen the academic environment of our universities.”

Copies of the directive were also sent to the Executive Secretary of the National Universities Commission, alongside all vice chancellors of federal universities, for information and immediate action.

The CATA is a specific financial component of the salary structure for the academic staff of universities in Nigeria. It was done by the Tinubu administration as a job-specific, tax-exempt allowance that supports the core research, teaching and intellectual activities of university academics.

With the new FG agreement with the university teachers, CATA is part of a dual salary structure. Now, university academic staff salaries are split into two main parts, comprising the Consolidated University Academic Staff Salary (CONUASS); the base salary, which is subject to standard tax rules and the Consolidated Academic Tools Allowance (CATA); separate, additional allowance intended for work-related tools and activities.

The purpose of CATA is not a general bonus, but a job-specific emolument intended to cover the costs associated with academic work, such as research materials, software, books, field work and other scholarly tools necessary for university lecturers to perform their duties effectively.

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