Federal universities’ and research institutions’ third-party research grant funds are not allowed to be included in the Treasury Single Account, under federal government directive.
The President’s direction to the Coordinating Minister of Finance and National Economy, Wale Edun, mandating the exemption was communicated by the Minister of Education, Prof. Tahir Mamman, to Vice Chancellors via a letter dated September 6, 2024, from the National Universities Commission, BrandSpur technology and information news reports.
Additionally, the regulation gives academic institutions and research centres the freedom to manage their endowment fund accounts at commercial banks independently. It is anticipated that this action will increase the financial independence of research institutions and universities, fostering innovation and research across the nation.
The NUC letter, which Chris Maiyaki, the acting executive secretary, signed, says what follows: “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.”
Furthering: “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. Please see attached.”
According to its definition, the TSA is a procedure and instrument that consolidates all government accounts into one cohesive entity for efficient management of its bank and cash position. As a result, MDAs that have not yet complied must cancel any revenue accounts they may have had open at various banks or branches and transfer the money they have earned to the TSA that the CBN manages.
According to these directives, MDAs can only access funds that have been approved in their budget through the TSA. The directive’s foundation is found in sections 80 and 162 of the 1999 Constitution (as amended), which makes the assumption that all expenditures of revenue are included in the national budget and approved by the National Assembly. This is especially significant. Additionally, it complies with a directive issued to the National Economic Council to guarantee that MDAs adhere to applicable accounting, allocation, and fund-disbursement rules.
