The Senate has raised the alarm over the mismanagement of N603 million from the N2.4billion internally generated revenue, IGR, by management of the University of Abuja.
The Senator Matthew Urhoghide, Peoples Democratic Party, PDP, Edo South led Senate Committee on Public Accounts Committee, SPAC, sustained the query of Auditor General of the Federation against the university on the said money.
The Auditor General of the Federation had raised concern in the 2017 report over the mismanagement of N603 million out of the N2 4 billion generated Internally by institution.
University of Abuja was expected to remit the N603 million into the Consolidated Revenue Fund, CRF, which forms 25 per cent of the revenue generated in the institution.
While responding to the query before the Senate Committee, the Vice Chancellor of University of Abuja , AbdulRasheed Na’Allah, claimed that the money generatediInternally was not enough to run the affairs of the institution, adding that they were, therefore, forced to spend N603 million meant for remittance to the Federation Account.
Na’Allah said: “Peculiarity of the universities in Nigeria is clear and does not have enough IGR to remit to the Consolidated Revenue Fund as adduced by the Auditor General.
“The universities collect only third party revenues from students. Revenue collected are for specific purpose such as union dues , ID card, medical fees, laboratory fees usually refees to other charges.
“Cost recovery concept is adopted by the university, that is charges collected were used to pay for services rendered.
“For instance , ID card charges were used to process ID cards for students. These revenues are not enough for the purpose collected and, therefore, the capacity for the university to remit surplus is lacking”
At the end of the day, Senator Urhoghide, who was represented by the vice chairman of the committee, Senator Ibrahim Hadejia, demanded a refund of the N603 million to the CRF.
The query read. “The Federal Circular Reference No. BO/REV/12235/259/VII/201 dated 11th November, 2011 issued by the Honorable Minister of Finance restricting expenditure on IGR to 75% while 25% is to be remitted to the CRF.
“During the review of financial records and documents, it was observed that the University generated the sum of ¦ 2,413,787,645.48 internally in 2016 and 2017.
“The yearly revenue generated internally was ¦ 1,463,097,604.13 in 2016 and ¦ 950,690,041.35 in 2017.
“Meanwhile, the University failed to remit 25% of its IGR amounting to ¦ 603,446,911.37 to the Consolidated Revenue Fund, CRF.
“Non remittance of the IGR shows lack of control in the expenditure of public fund. Furthermore, funds for developmental purposes is tied down.
“The Vice Chancellor is required to remit the sum of ¦ 603,446,911.37 being 25% of IGR to the CRF immediately and forward evidence of remittance to my Office for confirmation.
