Polytechnic Workers Reject 50% IGR Deduction by Finance Ministry

• SSANIP expresses dissatisfaction with the Ministry of Finance’s circular mandating a 50% deduction from IGR for tertiary institutions
• The union urges the Federal Government to reconsider, stating the inclusion of tertiary institutions negatively impacts the education sector

The Senior Staff Association of Nigerian Polytechnics (SSANIP) has expressed dissatisfaction with a recent circular issued by the Ministry of Finance, which mandates a 50% automatic deduction from the Internally Generated Revenue (IGR) of Federal Government Owned Enterprises (FGOE), aligning with the Fiscal Responsibility and Finance Act of 2020.

In a statement signed by its National President, Adebanjo Ogunsipe, on Saturday in Abuja, SSANIP voiced its concerns, stating that including tertiary institutions in the deduction would “inadvertently undermine the well-intentioned goals of the government.”

The union urged the Federal Government to reconsider and exempt tertiary institutions from this policy, emphasizing that any deviation from this stance would negatively impact the strained education sector.

The statement reads: “The Senior Staff Association of Nigerian Polytechnics (SSANIP) issues this statement to express its strong disapproval of the recent circular regarding the 50% automatic deduction from Internally Generated Revenue (IGR) of Federal Government Owned Enterprises (FGOE), as directed by the Honourable Minister of Finance.

“While we acknowledge and support the government’s initiatives to enhance internally generated revenues through appropriate policies, we find it necessary to voice our concerns regarding including Tertiary Institutions (polytechnics, universities, and colleges of education) in this directive. We firmly believe that such inclusion would inadvertently undermine the well-intentioned goals of the Government.

“It is crucial to emphasise that the revenues generated by these educational institutions primarily consist of service charges meant to supplement essential services provided to students, including hostel facilities, libraries, health services, sporting activities, etc. However, these charges are insufficient to cover the costs of these services, leading to persistent pleas from various stakeholders for increased funding over the years.

“Upon seeing the letter from the Permanent Secretary of the Federal Ministry of Education, Mr. Andrew David Adejo (CON), dated November 8, 2023, addressed to the Accountant General of the Federation, and the public statement made by the Honourable Minister for Education during the 75th University of Ibadan Founder’s Day Celebration in November 2023, affirming the exclusion of Tertiary Institutions from the policy, we breathed a sigh of relief.

“We hold the firm belief that the latest circular dated December 28, 2023, issued by the Federal Ministry of Finance, which includes Tertiary Institutions, may have been an oversight.

“We hereby urge the government, in the interest of the public, to reconsider her decision and revert to the well-thought-out position that initially excluded Tertiary Institutions from the 50% Automated Deduction Policy. Any deviation from this stance would be detrimental to the already beleaguered education sector.”