Fresh concerns have emerged across Nigeria’s public university system after the Federal Government reportedly directed federal universities to begin funding lecturers’ allowances through internally generated revenue (IGR), a move many fear could lead to another wave of tuition increases.
According to an internal memo from Modibbo Adama University, 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 bursar, revealed that the institution had already been paying the allowance from its IGR since January 2026 but could no longer sustain the arrangement because the Federal Government had not provided the required financial support.
As a result, the university announced the suspension of the allowance beginning from May 2026, citing worsening financial pressure.
The development has reportedly triggered anxiety among lecturers and students, with fears that universities may now resort to increasing school fees and service charges to survive financially.
A lecturer at the institution, who spoke anonymously, said many universities are already struggling to meet operational costs and cannot continue paying staff allowances without federal backing.
According to the source, discussions are already ongoing within some institutions about possible tuition hikes in the next academic session.
The situation has further intensified concerns over the rising cost of tertiary education in Nigeria, especially as many families continue to battle inflation, economic hardship, and declining purchasing power.
Over the past few years, several federal universities have increased tuition and other charges, leading to protests from students and criticism from labour unions who accuse the government of gradually commercialising public education.
Meanwhile, the Academic Staff Union of Universities has also accused the Federal Government of failing to properly implement the 2025 ASUU/FGN agreement.
During a press conference held at Benue State University, ASUU’s Nsukka Zone warned that the government’s actions could push the university system toward another industrial crisis.
The union criticised what it described as partial implementation of the agreement signed earlier in 2026 and faulted the government for failing to inaugurate the agreement’s monitoring committee.
ASUU also raised concerns over the proposed National Research and Innovation Development Fund, accusing the government of sidelining the union despite prior agreements on research funding.
The union warned that continued underfunding of public universities could further weaken educational standards, worsen staff welfare, and increase the likelihood of fresh strike actions across the country.