Government Declares Implementation Of Tax-Free Academic Allowance

The Federal Government has announced the commencement of the tax-free Consolidated Academic Tools Allowance, CATA, as part of the renegotiated 2025 agreement with the Academic Staff Union of Universities.

The move is tied to a 40 percent review of academic allowances aimed at improving lecturers’ welfare after 16 years without a major upward adjustment.

In early February 2026, the Minister of Education, Dr Tunji Alausa, directed vice-chancellors of federal universities to begin immediate implementation of the new structure, which took effect from January 1, 2026.

The National Salaries, Incomes and Wages Commission was said to have issued the necessary circular, with provisions captured in the ongoing 2026 budget process.

Under the revised structure, academic remuneration is now split into two components. The Consolidated University Academic Staff Salary, CONUASS, remains the taxable base salary.

The newly introduced CATA is a separate, job-specific, tax-exempt allowance designed to cover research materials, books, software, fieldwork, conferences and other scholarly tools.

Annual CATA payments range from slightly above ₦1 million for graduate assistants and assistant lecturers to over ₦3 million, reaching approximately ₦3.79 million in some reports for professors. The government has described the allowance as a targeted intervention to boost morale, curb brain drain and strengthen industrial harmony in the university system.

According to the minister, some institutions had already begun reflecting the new payments, and vice-chancellors were instructed to integrate the components into their payrolls using available resources pending full budget releases.

Lecturers Report Delays Despite FG Assurances

Despite the government’s assurances, many lecturers across federal universities say the new allowance and 40 percent uplift have not been reflected in their January salaries.

Reports from institutions including the University of Lagos, University of Nigeria Nsukka, University of Port Harcourt, Federal University Otuoke, University of Abuja, University of Calabar and Federal University of Lafia indicate that most academic staff received their January 2026 salaries at the old rates. In several branches, lecturers said they had seen no evidence of CATA or any upward review.

ASUU’s national leadership acknowledged that implementation had commenced in a few universities but maintained that the majority of branches were yet to benefit.

Some members also pointed to unresolved arrears from previous agreements and the absence of formal communication from university managements beyond media announcements.

The uneven rollout has heightened concerns within the union. An ASUU official from the South East warned that selective or delayed implementation could fuel fresh tensions if not addressed quickly and transparently.

While many universities are yet to implement the directive, a handful have reportedly begun partial compliance.

At the University of Jos and a few other institutions, some lecturers confirmed receiving their regular base salary followed by a separate CATA credit. In these cases, the tax-free allowance appeared as a distinct entry, reflecting the dual salary structure announced by the government.

However, even in institutions where payments have started, reports suggest that implementation is not yet comprehensive across all cadres, and administrative adjustments are still ongoing.

Vice-chancellors in several universities are said to be grappling with funding constraints, as they were directed to utilize available internal resources while awaiting clearer budgetary releases.

Observers note that without full statutory funding, uniform and sustainable implementation may remain challenging.

The introduction of CATA marks a significant policy shift in how academic compensation is structured, with emphasis on supporting core teaching and research functions through a tax-exempt allowance. If fully implemented nationwide, it could meaningfully increase lecturers’ take-home pay and improve working conditions.

However, the current patchy rollout risks undermining the objectives of the agreement. Trust deficits rooted in years of delayed or partially fulfilled agreements continue to shape perceptions among university staff.

The coming weeks are expected to be critical as February salaries are processed and the 2026 budget advances.

Stakeholders are calling for clearer communication from the Ministry of Education, the National Salaries, Incomes and Wages Commission and university administrations to ensure transparency and uniformity.

For now, the Federal Government maintains that implementation is underway, while many ASUU members continue to wait for the promised adjustments to reflect in their pay.

The resolution of this gap will likely determine whether the latest agreement strengthens stability in Nigeria’s university system or reopens familiar fault lines in labour relations.