Finance Ministry Freezes N4.9bn Subsidy for Student Meals

Wale Edun, Minister of Finance

N4.9bn student meal subsidy allocation suspended...

N4.9 billion meal subsidy for 112 Federal Unity Colleges withheld by Ministry of Finance, causing disruptions and accumulated debts, despite repeated calls for release.

An investigation has uncovered that the Ministry of Finance has withheld N4.9 billion in meal subsidies meant for 112 Federal Unity Colleges (FUCs) across Nigeria. Internal sources within the Federal Civil Service and correspondence between Education Minister Tahir Mamman and Finance Minister Wale Edun revealed the discrepancy.

The Ministry of Finance failed to disburse subsidies for November and December 2023, despite releasing funds for January 2024 onwards. This omission has caused disruptions, as the monthly allocation of N2.4 billion to the 112 FUCs has been consistent since January, excluding the previous two months.

The 112 Federal Unity Colleges (FUCs) have consistently received a monthly allocation of N2.4 billion since January. However, the missing subsidies for November and December 2023 have caused disruptions to their operations.

Didi Walson-Jack, the former Permanent Secretary of the Ministry of Education and incoming Head of Civil Service of the Federation, brought this issue to the attention of her finance counterpart in a February 2024 letter. She stressed the urgency of releasing the outstanding subsidies, warning that further delays would exacerbate the challenges facing the colleges and hinder their smooth operation.

“Approval and payment of the outstanding months of meal subsidy will ensure effective planning, management and execution of the meal subsidy programme in the colleges. It would also give the colleges the leverage to stock enough food items to guard against the incessant price inflation being experienced on a daily basis.

“It is imperative to note that the current challenges being encountered in the management of the meal subsidy in the Federal Unity Colleges are resultant effects of high and still rising cost of food items in the country and the worsening effect of the recurring late releases of the meal subsidy funds,” the former Permanent Secretary said in her letter.

A further probe showed that the finance ministry ignored Walson-Jack's letter, prompting Education Minister Tahir Mamman to send a follow-up letter urging the release of the overdue funds.

In his letter, Mamman highlighted the consequences of the finance ministry's inaction, citing the accumulation of debts in all 112 Federal Unity Colleges due to the delayed funding. He emphasized that this had worsened the financial struggles of the schools, underscoring the need for swift action to address the issue.

“The non-release of the outstanding months has adversely affected the arrangements made by the various schools' managements to smoothly conclude the term last year and commence the new session for the year 2024. We plan to make necessary although avoidable adjustments in the academic calendar when the November and December 2023 meal subsidy payments are made.

“As you are aware, the prices of goods and services have been increasing incessantly on a daily basis and the funds earlier budgeted for the subsidy last year can no longer purchase the same quantity of items currently. Also, the worsening effect of the recurring late releases of the meal subsidy funds is a serious stress on delivery of services, as food vendors are unable to sustain steady supplies due to mounting unpaid debts.”

The Ministry of Finance has yet to disburse the overdue funds, despite numerous letters and reminders from the Ministry of Education, according to insiders and workers familiar with the situation.

One of the senior civil servants in the Ministry of Education, who spoke on condition of anonymity for fear of victimisation, said, “We need the Ministry of Finance to tell us how they are doing the calculations. The schools have run into debt and are complaining. Please find out from them.”