…Excludes third-party research grant funds from TSA
By Sodiq Adelakun
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 on Monday 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.
According to a letter from the National Universities Commission (NUC) to Vice Chancellors, dated September 6, 2024, the President’s directive is marked to enhance the financial autonomy of universities and research institutions, promoting research and innovation in the country.
The NUC letter, signed by the Acting Executive Secretary, Chris Maiyaki, read: “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.”
This move is expected to boost research and innovation in the country, as universities and research institutions will now have more control over their finances.
“The exclusion of third-party research grant funds from the TSA will enable universities and research institutions to access funds more easily and quickly, which will in turn enhance research and innovation,” said a source in the Ministry of Education.
This directive is a significant step towards granting universities and research institutions financial autonomy, which has been a long-standing demand.
“Universities and research institutions will now be able to operate their endowment fund accounts in commercial banks, which will give them more control over their finances and enable them to make decisions quickly,” said a Vice Chancellor of one of the federal universities.
The Federal Government’s directive is a welcome development, and it is expected to have a positive impact on research and innovation in the country.