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 N603m from N2.4 billion generated internally.
The Auditor General had raised concern over the mismanagement in 2017 of the fund generated internally by the institution.
University of Abuja was expected to remit the N603m into Consolidated Revenue Fund (CRF) which is 25 per cent of the revenue generated in the institution.
However, the Vice Chancellor of UniAbuja , AbdulRasheed Na’Allah, while responding before the Senator Mathew Uroghide-led panel, claimed that the money generated internally was not enough to run the affairs of the institution. He said the management was forced to spend N603 million that was meant to remit 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.
“Revenues collected are for specific purpose such as union dues, ID card, medical fees, laboratory fees, etc.
“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.”
But Senator Urhoghide, represented by the Vice Chairman of the Committee, Senator Ibrahim Hadejia, demanded the refund of N603m to the 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 lack of control in the expenditure of public fund. Furthermore, fund 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.”