Nigerian students and parents may soon face a sharp rise in tuition fees as public universities are being pushed to fund lecturers’ allowances from their own internally generated revenue (IGR), with no federal financial backing in sight.
A leaked internal memo from Modibbo Adama University, Yola, has exposed the growing financial strain on public universities following a directive from the Federal Ministry of Education under President Bola Tinubu.
The memo, dated May 18, 2026 and signed by the university’s bursar, Hanien N. Ayuka, revealed that the ministry had instructed vice-chancellors across the country to source funds internally to pay the Consequential Adjustment and Transport Allowance (CATA) for academic staff, effective from January 2026.
According to the memo, Modibbo Adama University had been complying with the directive since January but could no longer continue as the Federal Government had not provided any cash backing.
“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,” it added.
The university subsequently announced the suspension of the allowance, stating that payment would be halted until the Federal Government releases the necessary funds.
“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 stated.
A lecturer at the university who spoke anonymously warned that the directive had thrown many institutions into financial crisis, with management teams now considering tuition hikes and increased service charges to stay 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 added.
Copies of the memo were circulated to the Vice Chancellor, Deputy Vice Chancellors, Registrar, Internal Auditor, Deans, ASUU Chairman, and the Head of Payroll.
The development comes at a time when ASUU has already been raising alarms over unpaid entitlements and the government’s failure to honour the 2025 FG/ASUU Agreement, raising fresh concerns about another round of industrial unrest in Nigerian universities.
Digital Operations Manager at The Students Forum Nigeria.
