The National Universities Commission (NUC) recently announced a significant policy shift regarding the financial management of federal universities and research institutions. The federal government ordered that third-party research grant funds for federal universities and research institutions be kept out of the Treasury Single Account.
In a letter addressed to Vice Chancellors on September 6, 2024, the Minister of Education, Prof. Tahir Mamman, conveyed a directive from the President to the Coordinating Minister of Finance and National Economy, Wale Edun, outlining new financial regulations, as reported by Channels Television. This change aims to enhance the financial autonomy of universities and research institutions, fostering research and innovation within the country.
The letter, signed by Acting Executive Secretary Chris Maiyaki, clarifies that external research grant funds will no longer be managed through the Treasury Single Account. This adjustment is designed to empower federal universities and research institutes by granting them greater financial control and streamlining their financial procedures.
The National Universities Commission received the directive from the Honourable Minister of Education, Ref. DE/HE/37/VII/324, 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, dated 23rd July 2024, on the above subject," the letter states. This shift is anticipated to have a positive impact on research and innovation initiatives within the academic and research sectors.
The new policy is geared towards fortifying the financial autonomy of universities and research institutions. Reports indicate that by permitting these establishments to oversee their endowment fund accounts in commercial banks, the government's objective of fostering increased research endeavors and innovations will be achieved.
This transition is poised to grant universities more authority over their financial resources, potentially fostering more vibrant and adaptable research environments. The directive empowers universities and research institutions to manage their endowment funds independently from the Treasury Single Account, aiming to boost operational efficiency and bolster their research and development initiatives.
Additionally, this policy adjustment signifies a broader initiative to enhance the financial management capabilities of educational and research institutions nationwide.
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