Several federal universities may be forced to suspend or review the payment of a new allowance for academic staff following the failure of the Federal Government to provide cash backing, despite directing institutions to fund it from their Internally Generated Revenue (IGR).
A leaked internal memo from Modibbo Adama University, Yola, dated May 18, 2026, and signed by the university’s Bursar, Hanien N. Ayuka, announced the suspension of the Consequential Adjustment and Transport Allowance (CATA) effective May 2026.
The memo stated that the Federal Ministry of Education had earlier directed all Vice-Chancellors to source funds from their IGR and commence payment of CATA to deserving academic staff with effect from January 2026.
It noted that while the university had been complying with the directive using its IGR since January, the Federal Government had failed to provide the required cash backing.
“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 memo read.
Background
CATA was introduced as part of the agreement signed between the Federal Government and the Academic Staff Union of Universities (ASUU) in January 2026. The allowance was designed to support academic staff with research tools, publications, conferences, and other professional expenses. It was presented as tax-free and part of efforts to improve lecturers’ welfare and reduce industrial disputes.
The Minister of Education had directed universities to begin implementation from January 2026, with some institutions commencing payment using their internally generated revenue while awaiting federal reimbursement or support.
ASUU Reacts
The development has drawn strong reactions from ASUU. The Nsukka Zone Coordinator, Comrade Christian Opata, accused the government of failing to properly implement the January 2026 agreement.
He said the government was sidelining the union in key decisions and failing to set up the Implementation Monitoring Committee as agreed.
“This is the unproductive route that the government is used to,” Opata said, warning that ASUU might be forced into another round of industrial action if the issues are not addressed.
University sources who spoke on condition of anonymity expressed concern that many federal universities would be unable to sustain the payments from IGR alone.
One lecturer stated that the situation would likely lead to an increase in tuition fees in the next academic session, as universities struggle to meet their obligations without adequate federal support.
This development comes amid growing concerns over the rising cost of university education, with several federal institutions having increased charges in recent years.
