In a significant move to promote research and innovation in the country, the Federal Government has directed the exclusion of third-party research grant funds of federal universities and research institutions from the Treasury Single Account (TSA).
This directive, conveyed by the Minister of Education, Prof. Tahir Mamman, to the Coordinating Minister of Finance and National Economy, Wale Edun, grants universities and research institutions the autonomy to operate their endowment fund accounts in commercial banks.
The National Universities Commission (NUC) communicated the directive to Vice Chancellors of federal universities in a letter dated September 6, 2024.
The letter, signed by the Acting Executive Secretary, Chris Maiyaki, stated: “The Nation university commission received the directive from the Honourable Minister of Education, Ref. DE/HE/37/VII/324 and dated 23rd July 2024, on the subject above.”
The exemption from the TSA is expected to enable universities and research institutions to manage their research grants more effectively, without the constraints of the TSA.
This move is seen as a significant step towards promoting academic freedom and autonomy, allowing institutions to focus on their core mandate of teaching, research, and community service.
The directive also grants universities and research institutions the autonomy to operate their endowment fund accounts in commercial banks.
This move is expected to enable institutions to manage their endowment funds more effectively, generating income and supporting research activities.
The Federal Government's directive is a response to the long-standing demand by universities and research institutions for greater financial autonomy.
The TSA, introduced in 2015, requires all federal government revenues to be remitted into a single account, limiting the financial flexibility of universities and research institutions.
The exemption of research grants from the TSA is expected to have a positive impact on the research landscape in the country, promoting innovation and entrepreneurship. Universities and research institutions can now focus on securing research grants and funding, without the constraints of the TSA.
The move is also seen as a significant step towards implementing the recommendations of the 2020 National Education Summit, which emphasized the need for greater financial autonomy for universities and research institutions.
The summit recommended the exemption of research grants from the TSA, to promote research and innovation in the country.
