Information have emerged that the Oyo State government’s resolve to reduce cum stop giving subventions to state-owned tertiary institutions is due to paucity of funds and the need for the management of institutions to be largely responsible for its running.
The state government’s decision would see a reduction in the subventions of the seven state-owned tertiary institutions, ranging from 25 per cent to 50 per cent, and then, an entire stoppage of the subventions.
In a letter to the Vice Chancellor, Ladoke Akintola University of Technology (LAUTECH) Ogbomoso; rectors of the Polytechnic, Ibadan; Ibarapa Polytechnic, Eruwa and Oke-Ogun Polytechnic, Saki; provosts of Emmanuel Alayande College of Education, College of Education, Lanlate and Oyo State College of Agriculture, Igboora, marked HCF/Corr.Gen./23, dated September 20, the state government had intimated of its inability to continue with the grant of subventions to the institutions.
The letter, which emanated from the office of the Commissioner for Budget and Planning, also referred to an earlier discussion on the need for the management of the institutions to focus on internally generated revenue to run its affairs.
Responding to what informed government’s decision to end granting subventions to tertiary institutions, Commissioner for Education, Science and Technology, Professor Adeniyi Olowofela, said, “it is not exactly true that we have stopped giving subventions to institutions, but ultimately, it will get to that. The government is challenging tertiary institutions to look for ways by which they can generate revenue. These institutions have clamoured for autonomy, so, this must include financial autonomy. The management of these institutions are aware of this development.”
Commissioner for Information, Mr Toye Arulogun, had also hinted of the state government’s move, stating that “this is the time for people to think out of the box, think differently. The allocation is not coming in the quantum that it used to come from Abuja. So, you see, the state government is focusing on improving its internally generated revenue. I dare say that some of these institutions must begin to look inwards. They cannot live on subventions forever and subvention is not statutory.
“Institutions should also consider how to generate revenue internally. They cannot continue to wait for subventions and salaries from government. Government will do its part, but the institutions themselves must become business oriented. However, being business-oriented doesn’t mean that the institution should increase the tuition fees of the students. The educational system must have the entrepreneurial spirit as the times are no more the same,” Arulogun said.