The Federal Government has mandated that third-party research grant funds for federal universities and research institutions be removed from the Treasury Single Account (TSA).
This decision is aimed at increasing the financial independence of these institutions and fostering greater research and innovation.
In a communication from the National Universities Commission (NUC) to Vice Chancellors dated September 6, 2024, the Minister of Education, Prof. Tahir Mamman, relayed the President’s directive to the Coordinating Minister of Finance and National Economy, Wale Edun. This directive also permits universities and research institutions to manage their endowment fund accounts through commercial banks.
This change is anticipated to significantly enhance the financial autonomy of universities and research institutions, allowing them to better support research and development activities.
The NUC letter, signed by Acting Executive Secretary Chris Maiyaki, states: “The National Universities Commission received the directive from the Honourable Minister of Education, Ref. DE/HE/37/VII/324 and dated September 4, 2024, forwarding the correspondence from the Principal Secretary to the President, State House, also vide PRES/87/MF/71/198/MBEP/15 and dated July 23, 2024, on the above subject.”
It further notes: “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”.
