The Federal Government has instructed that third-party research grant funds received by federal universities and research institutions be exempted from the Treasury Single Account (TSA) system.
This directive was communicated in a letter dated 4th September from the National Universities Commission (NUC) to Vice Chancellors.
The Minister of Education, Professor Tahir Mamman, forwarded President Bola Tinubu’s directive to the Finance Minister and Coordinating Minister for the Economy, Wale Edun, to oversee the exclusion of these funds from the TSA.Universities and research institutions have also been granted the authority to manage their endowment fund accounts in commercial banks independently.
This decision by the government aims to bolster the financial independence of universities and research institutions, fostering research and innovation within the nation.
The letter from the NUC, endorsed by the 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 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 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.”
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