Financial Autonomy: Nigerian Government exempts Universities, institutions’ research grants from TSA

*The Federal Ministry of Education discloses the new directive to Nigerian Federal Universities and Research Institutions also grants universities and research institutions the autonomy to operate their endowment fund accounts in commercial banks

Gbenga Kayode | ConsumerConnect

As part of measures to enhance the financial autonomy of Nigerian Universities and research institutions while promoting research and innovation, the Federal Government has directed the exclusion of third-party research grant funds of these Universities and research institutions from the Treasury Single Account (TSA).

ConsumerConnect learnt Prof. Tahir Mamman, Honourable Minister for Education, disclosed this development through a letter from the National Universities Commission to Vice-Chancellors, dated 6th September, 2024.

Chris Maiyaki, Acting Executive Secretary of NUC, in the letter noted Prof. Mamman conveyed the President’s directive to Mr. Olawale Edun, Honourable for Finance and Coordinating Minister of the Economy, mandating the exemption.

According to the government, the new directive also grants universities and research institutions the autonomy to operate their endowment fund accounts in commercial banks.

The Federal Government also stressed the decision is expected to enhance the financial autonomy of universities and research institutions, promoting research and innovation in the West African country.

The letter stated: “The National Universities Commission received the directive from the Honourable Minister of Education, Ref. DE/HE/37/VII/324 and dated 4th September, 2024, forwarding the correspondence from the Principal Secretary to the President, State House, also vide PRES/87/MF/71/198/MBEP/15 and dated 23rd July 2024, on the above subject.

“The letter communicates Mr. President’s directive to the Honourable Minister of Finance and Coordinating Minister of the Economy to exclude third-party research grant funds of Federal universities and research institutes from the Treasury Single Account (and to grant universities and research institutes autonomy in operating their endowment fund accounts in commercial banks.”