The memo further announced the suspension of the allowance due to the university’s worsening financial situation. The Nigerian government under President Bola Ahmed Tinubu has directed public universities across the country to begin funding lecturers’ allowances through internally generated revenue (IGR), a move that could trigger fresh tuition increases nationwide, SaharaReporters has learnt.
This is according to an internal memo obtained by SaharaReporters from Modibbo Adama University, Yola, which revealed that the Federal Ministry of Education instructed vice-chancellors to source funds internally to pay the Consequential Adjustment and Transport Allowance (CATA) for academic staff.
The memo, dated May 18, 2026, and signed by the university’s bursar, Hanien N. Ayuka, disclosed that the institution had already been implementing payment of the allowance from its internally generated revenue since January 2026, but could no longer sustain the arrangement because the Federal Government had failed to provide financial backing.
“It could be recalled that the Minister of Education, in a letter addressed to ALL Vice Chancellors, directed 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 to this moment.
The memo further announced the suspension of the allowance due to the university’s worsening financial situation.
“Consequently, 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 statement added.
Copies of the memo were sent to the Vice Chancellor, Deputy Vice Chancellors, Provost, Registrar, Internal Auditor, University Librarian, Deans, ASUU Chairman, and Head of Payroll.
A lecturer at the university who spoke to SaharaReporters on condition of anonymity said the Federal Government’s directive has thrown many universities into a financial crisis, with managements now considering increases in tuition and service charges to survive.
According to the source, lecturers are becoming increasingly frustrated as universities struggle to pay statutory allowances without federal support. “The lecturers are stranded because universities cannot continue to sustain these payments from IGR alone,” the lecturer 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 source further disclosed that recent discussions within the university management indicated that fee increases may become inevitable in the next academic session.
“In a recent meeting, the school resolved that fees may go up next session so the university can continue funding itself since the government is not willing to help them,” the source added.
