Alausa Calls for Financial Reforms to Bolster Unity Schools

The Minister of Education, Dr. Tunji Alausa, has urgently called for financial reforms to bolster Nigeria’s 110 Unity Schools.

He implored the Office of the Accountant General of the Federation (OAGF) to decentralize financial approvals and implement quarterly disbursements to ensure uninterrupted educational activities.

Dr. Alausa made this appeal in Abuja on Wednesday during an official visit by the Accountant General, Mr. Shamsudeen Ogunjimi, where they deliberated on the primary obstacles impeding education funding.

The Minister underscored the financial strains confronting Unity Schools, stemming from delays in overhead and school feeding allocations. He revealed that the ministry’s last overhead release occurred in March, while the school feeding budget was last received in April, compelling some Unity Schools to function under severe financial duress, unable to fulfill fundamental obligations.

“We are experiencing a challenging period. Principals are under duress from contractors who are coercing them over unpaid contracts,” Alausa remarked.

“In fact, I was compelled to postpone the resumption of some Unity Schools due to concerns over inadequate food supply,” he added.

The Minister proposed a decentralized financial framework to facilitate swifter and more efficient school payments.

He suggested that financial transactions below N500 million be sanctioned at the ministry level, while those under N100 million be processed by the agencies.

“I would propose, given the vastness of our nation, with a population of 220 million… instead of all payments, even as minimal as 1 million, coming to you, I believe you should reevaluate and determine which can be managed at the ministry and agency levels,” Alausa stated.

He also advocated for quarterly releases to furnish Unity Schools with predictable financial resources, aiding them in efficient planning.

The Accountant General, Mr. Shamsudeen Ogunjimi, acknowledged the funding challenges and pledged to prioritize financial releases to the Ministry of Education, particularly for Unity Schools.

He concurred with the proposal for termly disbursements and requested the Director of Finance and Accounts (DFA) in the ministry to submit a formal proposal.

“We will prioritize the ministry’s overhead releases and ensure that, even if others do not receive them due to funding constraints, the Ministry of Education receives theirs promptly,” he affirmed. Ogunjimi conceded that the ongoing bottom-up cash management policy, although intended to expedite budget implementation, has resulted in operational challenges due to the nation’s current fiscal predicament.

“The funds are not our primary issue. If not for the fiscal challenges we face, this policy would have been more beneficial. However, the existing deficits render it highly challenging,” he explained.

To address this, he disclosed that a high-level committee, established by the Minister of Finance, is currently reviewing the policy, with a revised and harmonized version anticipated shortly.

The AGF further revealed that the OAGF is inundated by the volume of budget-related documentation uploaded by various MDAs under the centralized approval system, contributing to bureaucratic delays.

“Our capacity is overstretched because all agencies are required to upload all their documents. Consequently, we must continually expand and delve into these,” he stated. “As you mentioned, most contracts of lesser value can be managed at the MDA level, obviating the need to crowd our system with those documents.”