President Bola Tinubu’s Government has directed public universities across the country to begin funding lecturers’ allowances through their internally generated revenue, a development that has triggered concerns over possible tuition increases in federal institutions.
This was revealed in an internal memo from Modibbo Adama University, which indicated that the Federal Ministry of Education instructed vice-chancellors to source funds internally for the payment of Consequential Adjustment and Transport Allowance for academic staff.
The memo, dated May 18, 2026, and signed by the university’s bursar, Hanien N. Ayuka, disclosed that the institution had been paying the allowance from its internally generated revenue since January but could no longer sustain the arrangement due to the absence of financial support from the Federal Government.
“It could be recalled that the Minister of Education in a letter addressed to ALL Vice Chancellors directing them to source funds from their respective IGR and immediately implement the payment of CATA allowance to ALL deserving Academic staff with effect from January 2026,” the circular read.
“You are aware, this University has been paying the CATA allowance as directed with effect from January 2026 from its Internally Generated Revenue (IGR). The cash backing however has not been made available up till this moment.”
The university subsequently announced the suspension of the allowance, citing worsening financial challenges.
“Consequently, the University is unable to sustain the continued payment of the CATA allowance and will henceforth suspend the payment until the Federal Government of Nigeria sends the necessary cash backing. The suspension takes effect this May 2026,” the memo added.
Copies of the circular were reportedly sent to the Vice Chancellor, Deputy Vice Chancellors, Registrar, Provost, Internal Auditor, University Librarian, deans, Chairman of the Academic Staff Union of Universities and the Head of Payroll.
A lecturer at the university, who spoke anonymously, said the directive had placed many public universities under severe financial pressure, with managements now considering tuition and service charge increases to remain afloat.
“The lecturers are stranded because universities cannot continue to sustain these payments from IGR alone,” the source said.
“The reality now is that many universities will increase tuition fees by next session because the government has practically told them to fund themselves.”
The lecturer further disclosed that discussions within the institution’s management had already pointed towards a likely fee increase in the next academic session.
“In a recent meeting, the school resolved that fees may go up next session so the university can continue funding itself since the government is not willing to help them,” the source added.
The development has reportedly heightened anxiety among students and lecturers, especially amid growing economic hardship and rising costs of education across the country.
Several federal universities have increased tuition and other charges in recent years, sparking protests from students and labour unions who accuse the government of commercialising public education.
Meanwhile, ASUU has again accused the Federal Government of failing to fully implement the 2025 agreement reached with the union, warning that the situation could trigger another industrial crisis in the university system.
The union made the allegation during a press conference held at Benue State University by the ASUU Nsukka Zone.
Speaking at the briefing, ASUU Nsukka Zonal Coordinator, Christian Opata, said the government was repeating actions that previously led to prolonged strikes in public universities.
“The Federal Government is taking the unproductive route that it is used to. Before the signing of the 2025 ASUU/FGN Agreement, the FGN forced our members to embark on strike actions over the 2009 Agreement. As it currently stands, the FGN is at it again trying to force us to embark on another round of actions over the 2025 Agreement,” he said.
Opata lamented that although the agreement was signed on January 14, 2026, implementation had remained “partial, distorted and largely abandoned.”
He also faulted the government for failing to inaugurate the Implementation Monitoring Committee expected to oversee the execution of the agreement.
The union further accused the Federal Government of sidelining ASUU in the proposed National Research and Innovation Development Fund announced by Education Minister, Maruf Alausa.
“ASUU, one of the parties to the agreement, was not involved whatsoever, a clear sign of breach of the said agreement through deliberate attempts to sideline the union,” Opata stated.
ASUU also rejected the proposed funding structure for the research initiative, insisting it contradicted the agreement reached with the government.
“One wonders how the Minister came about the $500 million he mentioned as being benchmarked for the fund,” the union queried.