President Bola Tinubu has directed the exclusion of third-party research grant funds of federal universities and research institutions from the Treasury Single Account (TSA), a move aimed at boosting research and innovation in the country.
This directive was communicated by the Minister of Education, Prof. Tahir Mamman, to the Coordinating Minister of Finance and National Economy, Wale Edun, instructing the exemption of research funds from the TSA system.
The directive also grants universities and research institutions the autonomy to operate their endowment fund accounts through commercial banks.
In a letter dated September 6, 2024, from the National Universities Commission (NUC) to Vice Chancellors, the policy is expected to enhance financial independence for these institutions, enabling them to better manage funds dedicated to research and development.
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The letter, signed by NUC Acting Executive Secretary Chris Maiyaki, reads: “The National Universities Commission received the directive from the Honourable Minister of Education, Ref. DE/HE/37/VII/324, dated 4th September 2024, forwarding correspondence from the Principal Secretary to the President, Ref. PRES/87/MF/71/198/MBEP/15, dated 23rd July 2024, on the subject.”
The letter continued: “Mr President’s directive to the Honourable Minister of Finance and Coordinating Minister of the Economy excludes third-party research grant funds of federal universities and research institutions from the Treasury Single Account. Additionally, it grants universities and research institutes autonomy to manage their endowment fund accounts in commercial banks.”
This development is seen as part of the administration’s broader efforts to promote academic research, streamline financial operations, and empower universities and research institutions to manage their resources more effectively. The flexibility in handling research grants and endowment funds is expected to foster greater academic contributions to national development.
The decision is also anticipated to help attract more grants and funding from international donors, providing universities and research institutions with the necessary resources to drive innovation, conduct groundbreaking studies, and contribute to Nigeria’s global academic standing.
This new financial autonomy marks a significant shift in the management of research funds and could lead to improved outcomes in academic research and development across the country
