BREAKING: Tinubu’s govt begins new tax-free allowances for university lecturers

The Minister of Education, Tunji Alausa, has directed federal universities to commence the payment of the tax-free Consolidated Academic Tools Allowance (CATA) to academic staff nationwide.

Alausa said the directive was in fulfilment of the agreement reached between the Federal Government and the Academic Staff Union of Universities (ASUU).

The minister issued the directive in a memo signed on Friday and addressed to all federal universities.

He said the payment of CATA should commence even as the approval process for the 2026 budget is ongoing.

Alausa said the allowance forms part of the executed 2025 agreement between the federal government and ASUU.

“The payment of this allowance is explicitly captured in the executed FGN-ASUU 2025 Agreement, which has been duly circularised by the National Salaries, Incomes and Wages Commission with effect from 1st January 2026,” he said.

The minister directed university authorities to mobilise available resources to ensure prompt implementation.

“I request that all university authorities utilise available resources to ensure the approved CATA is paid without delay, in full compliance with the NSIWC circular and the provisions of the FGN-ASUU Agreement,” he said.

Alausa said timely payment of the allowance would demonstrate the federal government’s commitment to honouring agreements.

“The prompt implementation of this allowance will demonstrate the Federal Government’s commitment to honouring duly negotiated agreements, promote industrial harmony, boost staff morale, and strengthen the academic environment of our universities,” he said.

Copies of the directive were sent to the executive secretary of the National Universities Commission and vice-chancellors of all federal universities for immediate action.

CATA is a job-specific, tax-exempt allowance introduced by the administration of Bola Tinubu to support the teaching, research and intellectual activities of university academics. Under the new agreement, academic staff salaries now operate under a dual structure.

The structure comprises the Consolidated University Academic Staff Salary (CONUASS) as the taxable base salary.

It also includes CATA as a separate, additional allowance intended to cover work-related academic tools and activities.

The allowance ranges from slightly above ₦1 million annually for graduate assistants and assistant lecturers to over ₦3 million for professors.

CATA is exempt from personal income tax under provisions of the Personal Income Tax Act and the Nigerian Tax Act 2025.

CONUASS, however, remains subject to applicable tax rules, reliefs and deductions. CATA was introduced as part of a 40 percent review of academic compensation.

The allowance is described as a benefit “peculiar to university academic staff” and designed to enhance productivity and academic performance.