President Bola Ahmed Tinubu has directed the development of a framework to allow research and endowment funds belonging to universities to be moved from the Treasury Single Account (TSA) to commercial banks of their choice. This move aims to improve access to the funds and strengthen universities' capacity to mobilize alternative sources of funding. The decision was announced by Minister of Education, Dr. Olatunji Alausa, at the National Advancement Forum 2026.
According to Alausa, some research and endowment funds were transferred into the TSA before the Tinubu administration, creating difficulties for universities in accessing and utilizing the resources. The new policy is designed to provide universities with greater flexibility and improve confidence in the management and deployment of such funds. Alausa emphasized that the move is part of efforts by the Federal Government to give universities greater flexibility in managing funds raised through research grants, endowments, and other non-government sources.
Alausa told vice-chancellors at the forum that President Tinubu has given them the leverage and opportunity to do their jobs well, and they must now take advantage of it. However, he lamented that many universities have yet to take full advantage of the opportunities provided by the administration to diversify their funding sources. Currently, only four of the 68 federal universities are making meaningful use of alternative funding opportunities, including research grants, endowments, alumni donations, philanthropy, and partnerships with industries.
Alausa described the situation as unacceptable, urging vice-chancellors to make resource mobilization a central responsibility of their administrations. He emphasized that government funding is not enough, and universities live, function, and excel on blended funding. The minister noted that universities globally have developed sustainable funding systems by cultivating relationships with alumni, businesses, philanthropists, research funders, and other strategic partners to finance laboratories, scholarships, research chairs, innovation programs, and other institutional needs.
Alausa urged Nigerian universities to adopt similar approaches, stressing that their intellectual capital could be deployed to attract substantial resources from the private sector and other funding partners. He also clarified that the Federal Government is not withdrawing financial support from tertiary institutions, noting that the Tinubu administration has demonstrated commitment to the sector through increased budgetary allocations, infrastructure investments, and other interventions.
As part of the new approach to resource mobilization, Alausa directed that Advancement Offices in all universities should report directly to Vice-Chancellors rather than Registrars. He also directed that Directors of Advancement should have a minimum five-year internal tenure, renewable where appropriate, to enable them to build and sustain long-term relationships with donors, alumni, industries, and philanthropic organizations. Alausa emphasized that advancement officers are professional fundraisers who require stability, institutional backing, and the confidence of university management.
The Federal Ministry of Education, in collaboration with the Nigerian Higher Education Foundation (NHF), will develop a comprehensive national framework for sustainable financing of tertiary institutions. The framework will cover endowment governance, accountability, research grants, Advancement Office structures, alumni giving, industry partnerships, philanthropy incentives, revenue management, and transparency. Alausa warned that universities that fail to broaden their funding base could face difficulties sustaining growth, research, and academic excellence.
Key points
- President Tinubu directs framework to allow universities to manage research and endowment funds in commercial banks.
- Only four of 68 federal universities are currently making meaningful use of alternative funding opportunities.
- The Federal Government is developing a comprehensive national framework for sustainable financing of tertiary institutions.
