The federal government has issued a pivotal directive, exempting third-party research grant funds from the Treasury Single Account (TSA).
The National Universities Commission (NUC) disclosed this decision in a letter dated 4th September 2024, which was made available to the media on Monday in Abuja.
This policy change allows Federal Universities and Research Institutes to manage their endowment funds independently through commercial banks, enhancing their financial autonomy.
The letter, addressed to the Honourable Minister of Finance and Coordinating Minister of the Economy, states: “The letter communicates Mr. President’s directive to exclude third-party research grant funds of Federal Universities and Research Institutes from the Treasury Single Account (TSA).”
It further explains that universities and research institutions will now have the autonomy to operate their endowment fund accounts in commercial banks. “Consequently, I am to convey Mr. President’s approval on the above subject to Vice-Chancellors of Federal Universities for further necessary action,” the letter adds.
NUC noted that detailed operational guidelines would be issued separately to assist with the transition.
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