FG Starts Disbursement of Tax-Free Allowances to University Lecturers

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The Federal Government has directed all federal universities to commence payment of the tax-free Consolidated Academic Tools Allowance (CATA) to university lecturers nationwide, in line with its agreement with the Academic Staff Union of Universities (ASUU). The directive was issued by the Minister of Education, Dr Tunji Alausa, as part of efforts to implement the FGN–ASUU 2025 Agreement.

In a memo signed on Friday, the minister instructed university authorities to begin payment immediately, even as the approval process for the 2026 budget is ongoing. He urged institutions to mobilise available resources to ensure prompt implementation of the allowance.

The allowance is expected to significantly increase lecturers’ take-home pay, with annual payments ranging from just over N1 million for Graduate Assistants and Assistant Lecturers to more than N3 million for Professors. The allowance is tax-exempt, making it a direct boost to academic staff earnings.

Dr Alausa noted that timely payment of the allowance would demonstrate the Federal Government’s commitment to honouring negotiated agreements, while also promoting industrial harmony, boosting staff morale and strengthening the academic environment across universities.

Copies of the directive were sent to the National Universities Commission (NUC) and all vice chancellors of federal universities for immediate action. The CATA, introduced under the Tinubu administration, is designed to support research, teaching and other core academic activities of university lecturers.

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