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FG to allow federal varsities operate endowment fund outside TSA

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The federal government has given a directive to the ministry of finance allowing federal universities to operate an endowment fund independent of the Treasury Single Account (TSA).

The TSA is a public accounting system where the earnings of all revenue-generating government agencies, including publicly funded tertiary institutions, are paid into a single account or a set of linked government accounts.

In Nigeria, this financial policy was proposed in 2012 under the Goodluck Jonathan administration.

Its implementation began in September 2015 under former President Muhammadu Buhari, ensuring that all payments are made through a consolidated revenue account (CRA) at the central bank.

The initiative was aimed at increasing accountability and checking cases of multiple accounts run by government ministries, departments, and agencies.

Public tertiary institutions in Nigeria have been grappling with a sustainability crisis for years due to inadequate federal funding.

Calls to rejig and diversify the funding framework for federal universities have intensified in recent years, with more institutions looking to operate endowment funds.

Endowment funds are a pool of donated money that is invested to generate income for an institution’s long-term financial stability.

Typically, the principal amount is preserved and not spent while a portion of the investment returns is used to support the university’s operations, critical infrastructure, scholarships, research, faculty salaries, or campus development.

However, Nigeria’s TSA policy and a general lack of financial autonomy have long held public universities back from pooling funds to invest in profitable ventures.

The National Universities Commission (NUC), in a letter addressed to vice-chancellors and seen by TheCable, says it has now received a presidential directive that looks to grant federal universities the approval to operate endowment funds domiciled with commercial banks.

Chris Maiyaki, acting executive secretary of the NUC, said the approval was contained in a letter from the ministry of education.

He said the letter with the reference “DE/HE/37/VII/324” and dated September 4 forwarded correspondence from the principal secretary to the president referenced “PRES/87/MF/71/198/MBEP/15” and dated July 23.

Maiyaki said the directive, the implementation modalities of which will be communicated, effectively ordered the finance ministry to exclude the third-party research grants of federal universities from the TSA.

He said it also grants universities and research institutes autonomy in operating their endowment fund accounts in commercial banks.

“I am to convey Mr. President’s approval on the above subject to vice-chancellors of federal universities for further necessary action. Joining instructions which pertain to operational guidelines will be issued under separate cover,” the NUC executive secretary said.

Education

Godfrey Okoye University VC decries high electricity bills as DisCo puts them in Band A

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Godfrey Okoye University (GOUni) in Enugu has decried the placement of the university in the electricity Band A.

In April, the National Electricity Regulatory Commission (NERC) raised the rate for the Band A tariff class from N66 to N225 per kwh.

Customers under the Band A category are expected to have a minimum of 20 hours of electricity in a day.

Band B category is 16 hours, Band C is 12 hours, Band D is eight hours, and Band E is four hours.

The tariff hike attracted public outcry and calls for its reversal, with many communities raising concerns about affordability.

Christian Anieke, the vice-chancellor of GOUni, said the Enugu Electricity Distribution Company (EEDC) placed the campus on Band A.

He addressed the institution’s campus while unveiling plans for the 2024/2025 academic session which commenced on Friday.

The VC said the billing of GOUni on the electricity tariff class is “ridiculous” and excessive.

“It is only in Nigeria that you see things like this; billing a university like a business entity,” he added.

Anieke said the university is looking to install solar lights in all the student hostels.

He said the institution would boost its internally generated revenue (IGR) through research, innovation, and entrepreneurship.

Anieke said each department in the university must show evidence of IGR without additional payment by the students.

The VC directed all faculties and departments to double efforts to generate funds through research, grants, and alumni collaboration.

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Education

Flood hits UI student hostels, destroys property

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Flood has caused significant damage at the University of Ibadan, destroying books, foodstuffs, and other essential materials.

The flood, on Friday, wreaked havoc in the university community and destroyed property worth millions of naira.

Among property destroyed were documents and other valuables.

The PUNCH investigations on Saturday morning revealed that the property were destroyed by floods that submerged some hostels of the institution.

A student of the institution, who preferred anonymity, said, “The most affected hall of residence is Awo Hostel where about 16 rooms in the underground floor were completely submerged with students’ property floating on the water.”

Another source said, “The students’ foodstuffs, documents and property, especially those that went for examinations were destroyed.

“The flood took over students’ rooms, toilets, kitchens and all the entrances to their hostel.

“The flood took over my friend’s room, and destroyed everything she has, including the ones in her cupboard.”

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Education

ASUU threatens indefinite strike, says FG fails to honour agreement

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The Academic Staff Union of Universities (ASUU) has threatened to embark on an indefinite strike over the failure of the Federal Government to honour the 2009 agreement reached with it.

Prof. Timothy Namo, the Bauchi Zonal Coordinator of the union said this during a news conference on Friday in Jos.

Namo said that the union after its National Executive Council (NEC) held between Aug. 17 and Aug. 18, issued a 21-day ultimatum.

”As we speak, the government has not honour any of the agreements or addressed our concerns.

”At the expiration of the 21-day ultimatum, we again issued another 14-day ultimatum that commenced from Sept. 23.

”So, we want Nigerians to blame the federal government if ASUU decides to down tools and shut down public universities,” he said.

Namo highlighted the lingering issues, nonconclusion of the re-negotiation of the 2009 agreement, non-release of the three-and-half month salaries of academic staff, unpaid salaries of all academic staff on adjunct appointment, and outstanding third-party deductions.

Other lingering issues he said were poor funding for the revitalisation of public universities, non-payment of Earned Academic Allowances (EAA) as captured in the 2023 budget, proliferation of universities, and nonimplementation of the reports of visitation panels to universities, among others.

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Bodex F. Hungbo, SPMIIM is a multiple award-winning Nigerian Digital Media Practitioner, Digital Strategist, PR consultant, Brand and Event Expert, Tv Presenter, Tier-A Blogger/Influencer, and a top cobbler in Nigeria.

She has widespread experiences across different professions and skills, which includes experiences in; Marketing, Media, Broadcasting, Brand and Event Management, Administration and Management with prior stints at MTN, NAPIMS-NNPC, GLOBAL FLEET OIL AND GAS, LTV, Silverbird and a host of others

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