By Felix Khanoba
The Federal Government has begun the implementation of a new tax-free allowance for university lecturers, in line with the agreement reached with academic staff.
The move follows the directive by Minister of Education, Dr. Tunji Alausa, that federal universities nationwide to commence payment of the Consolidated Academic Tools Allowance (CATA).
The allowance, which ranges from slightly above N1 million per year for graduate assistants and assistant lecturers to more than N3 million for professors, is expected to increase the net earnings of university teachers.
In a memo issued in Abuja, the minister directed all federal universities to start paying the Consolidated Academic Tools Allowance to academic staff, even as the approval process for the 2026 budget continues.
Explaining the directive, Dr. Tunji Alausa noted in the memo sent to federal universities that the tax-free allowance formed part of the executed FGN-ASUU 2025 Agreement.
He said, “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.”
The minister also urged university authorities to deploy available resources to ensure the immediate rollout of the payment.
“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 stated in the memo.
Dr. Alausa further stressed the significance of prompt implementation, saying, “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.”
Copies of the directive were forwarded to the Executive Secretary of the National Universities Commission and all vice chancellors of federal universities for information and immediate action.
The AUTHORITY reports that the Consolidated Academic Tools Allowance (CATA) is a dedicated component of the salary structure for university academic staff in Nigeria. It was introduced by the Tinubu administration as a job-specific, tax-exempt allowance designed to support research, teaching and other intellectual activities of lecturers.
Under the new agreement, CATA forms part of a dual salary structure for university academics. The structure splits earnings into two major components.
The first is CONUASS (Consolidated University Academic Staff Salary), which serves as the base salary and is subject to standard tax regulations.
The second is CATA (Consolidated Academic Tools Allowance), an additional payment meant specifically for work-related tools and activities.
CATA is not a general bonus but a job-specific emolument intended to offset costs associated with academic work, including research materials, software, books, fieldwork and other scholarly tools required for effective performance.
Under existing Nigerian tax laws, CATA is tax-exempt. This exemption is provided for under the Personal Income Tax Act (PITA), Section 3(1)(b), and the Nigerian Tax Act 2025, Chapter 2, Part 1, 4(2)(a).
However, CONUASS, being the base salary, remains taxable and is subject to applicable tax reliefs and deductions.
CATA was introduced as part of a 40 per cent review of academic compensation and is described as a feature “peculiar to University Academic Staff,” underscoring its role as a targeted incentive and support mechanism for the profession.
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