The Accountant-General of the Federation (AGF), Dr. Oluwatoyin Madein, has introduced fresh directives to exclude third-party research grant funds of Federal Universities and Research Institutions from the Treasury Single Account (TSA). This policy adjustment follows approval by President Bola Tinubu and is aimed at easing financial operations for these institutions.
In a statement by the AGF’s Director of Press, Bawa Mokwa, the new guidelines were communicated through a federal treasury circular issued in Abuja, which had immediate effect.
As part of the revised policy, Federal Universities and Research Institutions must secure approval from the AGF before opening accounts for research grants or endowment funds with commercial banks. However, other institutional accounts will remain under the Central Bank of Nigeria (CBN) as mandated by the TSA.
Dr. Madein emphasized that all research grants and endowment funds should be backed by formal Memoranda of Understanding (MoUs) between the institutions and their respective grant bodies. “The Office of the Accountant General of the Federation will keep a comprehensive list of all bank accounts opened under this policy,” she explained.
The management of these accounts, including transaction reporting and accounting, will be the responsibility of each institution’s Bursary or Accounts Department. Importantly, Dr. Madein stressed that the funds received in these accounts are exclusively for research purposes, and no other public funds may be routed through them.
These accounts will not be classified as operational accounts for the institutions, reinforcing the focus on research-related activities. Institutions are also required to submit annual returns, including bank statements and reconciliation reports, to the AGF’s office for government financial records.
Despite the exemption for research funds, compliance with the TSA and e-collection guidelines remains compulsory for all other institutional accounts. This maintains the government’s oversight and control over public funds, except where specified by the new research fund guidelines.
In another development, the AGF’s office recently outlined changes to payroll management for tertiary institutions exiting the Integrated Personnel and Payroll Information System (IPPIS). Payrolls for October 2024 will be processed on the IPPIS platform, while those for November and December 2024 will be handled by the institutions, reviewed by the IPPIS unit, and processed through the Government Integrated Financial Management Information System (GIFMIS).
These updates signal a shift in how financial operations, particularly around research funding and payroll management, will be managed across Nigeria’s federal education and research institutions.
