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The Federal Government, through the Accountant General of the Federation (AGF), Dr. Oluwatoyin Madein, has released guidelines for the exemption of research grants and endowment funds from the Treasury Single Account (TSA) for Federal Universities and Research Institutions. This move comes after President Bola Tinubu’s approval of the exemption aimed at supporting academic research and innovation.
In a circular issued from Abuja, Dr. Madein announced that these new guidelines would be implemented immediately to facilitate the management of third-party research funds without the restrictions imposed by the TSA.
Under the guidelines, Federal Universities and Research Institutions are now required to seek approval from the AGF before opening dedicated research grant and endowment fund accounts with commercial banks. All other institutional accounts, however, must continue to be maintained with the Central Bank of Nigeria (CBN).
Dr. Madein emphasized that each research grant or endowment fund must be supported by a well-documented Memorandum of Understanding (MoU) between the tertiary institutions and the granting bodies. Additionally, her office will maintain a comprehensive list of all such accounts opened under this policy.
“The management of these accounts, including the accounting and reporting of transactions, will be handled by the bursary or accounts departments of the respective institutions,” she stated.
The AGF stressed that these accounts are strictly for receiving research grants and endowment funds. Under no circumstances are they to be used for other public funds, nor are they considered operational accounts for the institutions.
In compliance with these new regulations, institutions are required to submit annual returns to the AGF’s office, including bank statements and reconciliation documents for all research grant and endowment fund accounts. These will then be incorporated into the General Purpose Financial Statement (GPFS) of the government.
Dr. Madein also reminded the institutions of the need to adhere to the TSA/e-collection policy guidelines in all operations related to these accounts.
This development follows earlier guidelines by the Office of the Accountant General for tertiary institutions exiting the Integrated Personnel and Payroll Information System (IPPIS). For October, payroll processing will remain under the IPPIS platform, while institutions will independently manage November and December payrolls, with oversight by the AGF through the Government Integrated Financial Management Information System (GIFMIS).
These new measures aim to streamline the financial management of research funding while maintaining accountability, promoting transparency, and ensuring compliance with national financial policies.
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