Polytechnics Demand Exemption From 40% IGR Deduction

The Academic Staff Union of Polytechnics (ASUP) has urged the exclusion of tertiary institutions from the 40 per cent deduction on Internally Generated Revenue (IGR) imposed on Federal Government-owned enterprises.

ASUP President, Mr. Shammah Kpanja, conveyed this appeal in a statement released on Thursday in Abuja.

Recall that on October 17, 2023, the Accountant-General of the Federation announced the commencement of a 40 per cent automatic deduction of IGR, effective from November 2023.

It is also worth noting that President Bola Tinubu, represented by the Minister of Education, Tahir Mamman, suspended the policy for higher institutions during the 75th Founder’s Day ceremony of the University of Ibadan, citing its ill-timing given the struggling state of universities.

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Kpanja noted the union’s concern over the circular issued by the Federal Ministry of Finance on December 28, which reinstated the 40 per cent deduction on IGR for government-owned enterprises, resembling the earlier circular from October 2023.

He called for the exclusion of tertiary institutions, especially polytechnics, from this circular, stressing the policy’s adverse impact on these institutions’ survival.

Expressing surprise and worry, Kpanja stated, “This effect presumably overriding the presidential directive on the issue as there are no reports yet indicating that the president has lifted the suspension.

“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.

“We are therefore calling for the exclusion of tertiary institutions in general and polytechnics in particular from this circular.”

Kpanja emphasized that this call stemmed from the imperative need to safeguard institutions, particularly Polytechnics, from imminent collapse. He notedthe far-reaching consequences on staff, students, and society at large should this policy persist.

He urged the government to focus on augmenting funding to these institutions, treating them as crucial sectors requiring revitalization and stability.

(NAN)