Nigeria’s plan to overhaul lecturer allowances is fueling fears of a deeper pay rift in academia, with experts warning the changes will split universities into haves and have-nots.
The development has also reignited a long-running debate over university autonomy, public funding, and whether Nigerian universities should continue to depend largely on government allocations or evolve into self-sustaining institutions capable of generating substantial revenue through research, innovation, consultancy, agriculture, technology and industry partnerships.
Friday Erhabor, director of media and strategies at Marklenez Limited, said the policy presents an opportunity for universities to become more commercially oriented and explore new revenue streams.
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“Nigerian public universities have all the resources to be commercially viable if only they become creative and accountable.” They should take up the challenge without any ill feeling whatsoever, as that is the direction to go,” he said.
“The mechanical engineering department should set up mechanic villages to generate revenue, and the civil engineering departments should partner with states and local governments to construct roads for revenue generation.”
However, many stakeholders are worried that universities may ultimately transfer the cost burden to students through higher tuition fees and other charges at a time when households are already grappling with inflation and a worsening cost-of-living crisis.
Ajibade Ayodeji, senior lecturer at Babcock University, expressed concerns that the directive may encourage universities to aggressively pursue revenue generation without adequate safeguards for students.
“This move may push public universities to aggressively pursue revenue generation, and the fear is that students may end up bearing the burden through increased fees and unnecessary charges,” he said.
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“In this already harsh economy, that would place even more pressure on parents and students.”
Ayodeji argued that while education in Nigeria is not entirely free, it should remain affordable and accessible.
“Government still has the financial capacity to fund the lecturers’ allowances if national resources are properly managed and judiciously utilised,” he said.
Beyond affordability concerns, some academics warn that the policy may expose deep disparities in the financial strength of public universities.
At the centre of the debate is whether all universities have sufficient internally generated revenue to absorb the additional cost.
According to the University of Nigeria, Nsukka’s statement of financial performance for the year ended December 31, 2024, the institution generated about N43.56 billion and recorded expenditure of N43.84 billion, leaving a deficit position.
The figures highlight the difficult financial realities facing many public universities, where operating costs continue to rise amid growing demands for infrastructure, research funding and staff welfare.
The University of Lagos, one of the country’s strongest revenue-generating public institutions, told BusinessDay that it has already commenced payment of the approved lecturers’ allowances in line with the federal government’s directive.
However, the university noted that sustaining the payments solely through internally generated revenue could place additional pressure on its finances, given its wider operational responsibilities.
With about 1,700 lecturers on its payroll, estimates suggest that the annual allowance bill could run into several billions of naira, depending on academic rank and entitlement levels.
Consequently, stakeholders argue that if relatively stronger institutions face sustainability concerns, universities with weaker revenue bases could face even greater difficulties.
Greg Ezeah, professor of mass communication at the University of Nigeria, Nsukka, described the directive as a departure from what academics were initially led to believe.
“We were told that the agreement the government signed with the ASUU was that the universities should use their IGR to pay the CATA from January to April 2026, because the bill for the 2026 budget had not been passed by the National Assembly.
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“And that when the bill was passed and signed, the government would take over the paying of CATA. How can the government renege and now ask the universities to pay? Some universities have not even been able to pay the January to April imposition,” he said.
Similarly, Stanley Boroh, senior lecturer at the Federal University, Otuoke, questioned whether all institutions possess the same capacity to generate revenue.
“Some schools don’t even have enough IGR. The government should work it out with university management and pay all the money,” he said.
The concern, analysts say, is that a policy designed to promote autonomy could inadvertently create a two-tier public university system where institutions with stronger revenue streams are able to meet obligations and maintain standards, while others struggle to keep pace.
Such fears are compounded by the size of the allowance itself. Graduate assistants are entitled to more than N1 million annually under the allowance structure, while senior lecturers and professors receive about N3 million yearly.
Omoh Alokwe, an entrepreneur and University of Lagos graduate, believes the policy reflects the government’s attempt to reduce its financial burden.
“The government decision is to reduce costs on its part by advocating the use of internally generated revenue to fund its allowances,” she said.
The debate has once again drawn attention to the broader question of how universities should be funded in a modern economy.
In countries such as the United States, universities generate significant income through patents, research grants, alumni donations, technology commercialisation, sports and international student enrolment.
According to the National Academy of Inventors, academic institutions across the world increasingly rely on intellectual property protection and commercialisation to translate research into economic value.
China’s university system has similarly integrated academic research into industrial development, helping to drive manufacturing growth and technological advancement.
Ugoji Maximillian, a public affairs analyst, said the federal government’s directive aligns with a broader push to encourage productivity and value creation.
“If lecturers are to receive globally competitive research and academic support allowances, institutions themselves must begin creating value,” he said.
However, he warned that the policy could become counterproductive if universities simply pass the burden on to students.
“If university management simply transfers the burden to poor students through endless sundry charges, then the policy could worsen inequality and reduce access to education.”
Recent tuition increases across public universities have heightened such concerns.
At the University of Benin, fees for science students rose to N190,000 from N73,000 during the 2024/2025 academic session, while non-science students paid N170,000 compared to the previous N69,000.
At the University of Lagos, mandatory charges for fresh students have also increased in recent years. While official fees for some categories of students ranged between N126,325 and N176,325 in 2024, some students told BusinessDay their total payments were significantly higher after additional charges were included.
Michelle Nwoke, a law student, said she paid about N271,000, while Naomi Thompson said her science programme cost about N240,000.
For many stakeholders, the central question is no longer whether universities should generate revenue, but whether a funding model built around institutional self-sufficiency can be pursued without making higher education more expensive and less accessible to ordinary Nigerians.
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