The Senate Public Accounts Committee (SPAC) has sustained the query of the Auditor General of the Federation against the University of Abuja over mismanagement of N603 million from N2.4 billion internally generated.
The Auditor-General had raised concern in the 2017 report over the mismanagement of N603 million out of N2.4 billion generated internally by the institution.
The University of Abuja was expected to remit the N603 million into the Consolidated Revenue Fund (CRF) which amounted to 25 per cent of the revenue generated in the institution.
However, the Vice-Chancellor of UNIABUJA, Abdul-Rasheed Na’Allah while responding before Senator Mathew Uroghide led Panel claimed that the money generated Internally was not enough to run the affairs of the institution, therefore they were forced to spend N603 million that was meant to be remitted into 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 is for a specific purpose such as union dues, ID cards, medical fees, laboratory fees among other charges.
“Cost recovery concept is adopted by the University and money 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”
However, Senator Urhoghide represented by the Vice Chairman of the Committee, Senator Ibrahim Hadejia demanded the refund of N603 million to the Consolidated Revenue Fund (CRF).
The query reads, “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 a lack of control in the expenditure of public funds. 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. ” (Nigerian Tribune)
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