The National Universities Commission (NUC) recently announced a significant policy shift regarding the financial management of federal universities and research institutions; as the federal government ordered that third-party research grant funds for federal universities and research institutions be kept out of the Treasury Single Account.
According to a letter sent to Vice Chancellors on September 6, 2024, the minister of education, Prof. Tahir Mamman, conveyed the directive from the president to the coordinating minister of Finance and National Economy, Wale Edun, mandating new financial regulations, as reported by Channels Television.
This change as reported is aimed at increasing the financial independence of universities and research institutions, encouraging research and innovation in the country.
Details On The New Financial Directive
The letter, signed by Acting Executive Secretary Chris Maiyaki, explains that funds from research grants given by external sources will no longer be managed through the Treasury Single Account. This change, as stated, is meant to give federal universities and research institutes more control over their finances and make their financial processes more efficient.
“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,” the letter states.
Impact on Research and Innovation
The new policy aims to bolster the financial independence of universities and research institutions. Reports expand that by allowing these institutions to manage their endowment fund accounts in commercial banks, the government’s aim to facilitate increased research activities and innovations will be accomplished.
This shift is expected to provide universities with more control over their financial resources, potentially leading to more dynamic and responsive research environments.
Autonomy in Financial Management
The directive provides universities and research institutions with the authority to operate their endowment funds independently of the Treasury Single Account.
This move is designed to enhance operational efficiency and support the institutions’ efforts in research and development.
Further reports state that the policy change reflects a broader effort to strengthen the financial management capabilities of educational and research institutions across the country.
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