A member of the Governing Council of the University of Lagos (UNILAG) who was nominated to represent the Federal Government in the body, Dr. Muhammad Saminu Dagari has written the Minsiter of Education, Mallam Adamu Adamu accusing the institution’s management led by the removed Vice Chancellor, Prof. Toyin Ogundipe of financial impropriety.
In an open letter to the Minister which was released today, Dagari alleged that Professor Ogundipe-led management of the university provided the Governing Council with “false information” which led to its passing the institution’s 2018 and 2019 Budgets “in error”.
According to Dagari, “All along, the Governing Council did not know the actual number of Internally Generating Units (IGUs) in the University, until recently when Eddy Omolehinwa (a Professor of Public Accounts) Council Sub-Committee to overhaul the operations of the Income Generating Units in the University of Lagos submitted its report to Council.”
Read also: Babalakin’s resignation as UNILAG Pro-Chancellor a bad omen – Oye-Adeniran
Below is the full text of Dagari’s letter to the Minister.
OPEN LETTER TO THE HONOURABLE MINISTER OF EDUCATION
(MALLAM ADAMU ADAMU)
Dear Sir,
CORRUPTION IN THE UNIVERSITY OF LAGOS
I would like to use this opportunity to thank the president of the Federal republic of Nigeria, President Muhammadu Buhari for giving me the opportunity to serve as a Federal Government representative on the University of Lagos Governing Council from May 2017 till date.
Sir, the fundamental problem of University of Lagos Finance is Inaccurate Budget. The Current Governing Council passed the 2018 and 2019 Budgets in error because of false information from the Prof. Ogundipe led Management. All along, the Governing Council did not know the actual number of Internally Generating Units (IGUs) in the University, until recently when Eddy Omolehinwa (a Professor of Public Accounts) Council Sub-Committee to overhaul the operations of the Income Generating Units in the University of Lagos submitted its report to Council.
The Omolehinwa Sub-Committee reported that there are 30 Income Generating Units (IGUs) which were classified into Category A and Category B Units.
Category A Units
- These are the units of the University that are expected to generate income to sustain their operations, cover all staff compliments and overheads as well as make financial contributions to the University.
- They include all the limited liability companies; all part- time programmes which are also called Non-FTE academic programme units.
Category A Units in the University of Lagos Main Campus
1) UNILAG Holding Company Ltd (UNIHOLD)
2)University of Lagos Guest Houses and Conference Centre Ltd
3) University of Lagos Press and Bookshop Ltd, combining the Press and the Bookshop
4) University of Lagos Pharmaceutical Ltd
5) University of Lagos Ventures Ltd
6) UNILAG Consult Ltd
7) University of Lagos Property Development and Investment
8)University of Lagos Property Management and Development Company Ltd
9) School of Postgraduate Studies
10) Human Resources Development Centre
11) Distance Learning Institute
12) School of Foundation Programme
13) Institute of Continuing Education 14) UNILAG Maritime Studies
Category A Unit at College of Medicine University of Lagos
1) MEDILAG Ventures Ltd
Apart from ones that are already in existence, there are two in the Main Campus that are still to take off.
1) University of Lagos Business School 2) UNILAG Microfinance Bank
Category B Units
- These are the Income Generating Units that were specifically set up to provide basic services to the University at subsidised charge to the recipients of the service such as the Medical Centre and Staff School.
- Although revenue or income is being generated by such units they cannot, in the strict sense of the word be designated as core income generating units.
- At best, they will be required to break-even or even record minimal losses such units are best assessed on their ability to satisfactorily provide those services for which they were set up.
Category B Units in the University of Lagos Main Campus
1) International School, ISL 2) Auditoria Management Unit 3) UNILAG Staff School
4) Sports Centre 5) UNILAG Medical Centre 6) UNILAG Media Centre
7) UNILAG Television 8) UNILAG Radio
Category B Units at College of Medicine University of Lagos
1) Department of Medicine Laboratory 2) MEDILAG Consult/ Pre-Natal Diagnosis Centre 3) A –Lab 4) Pediatrics D4 Laboratory
5) Clinical Pathology Laboratory/ Toxicology 6) Central Research Laboratory
7) Anatomic Molecular Pathology Laboratory
1) Internally Generating Units (IGUs) Captured in 2018, 2019 & 2020
Budget Estimates
- No IGU was captured in the 2018 Recurrent Estimates
(Source: 2018 Recurrent Estimates, Estimate Summary as Approved by the Council, Table 7 Page 36 to 43)
- Only three Internally Generating Units were captured in the 2019 Recurrent Estimates
| Emoluments | General Expenditure | Capital Expenditure | Total Expenditure | |||
| IGU | Proposed 2019( | Suggested 2019( | Proposed 2019( | Suggested 2019( | ||
| School of Foundation Studies | 12,607,640 | 12,607,640 | – | – | 12,607,640 | 12,607,640 |
| Human Resources Dev. Centre | 48,057,027 | 48,057,027 | – | – | 48,057,027 | 48,057,027 |
| Institute of Continuing Education | 18,017,052 | 18,017,052 | – | – | 18,017,052 | 18,017,052 |
| Sub-total | 78,681,719 | 78,681,719 | – | – | 78,681,719 | 78,681,719 |
· Only five Internally Generating Units were captured in the 2020 Recurrent Estimates
| Suggested | ||||
| IGU | Emoluments ( | General Expenditure ( | Capital Expenditure ( | Total Expenditure ( |
| Auditoria Management Unit | 36,699,134 | 24,654,791 | 5,551,000 | 66,904,925 |
| Property Development Investment | 15,990,181 | 2,000,000 | 500,000 | 18,490,181 |
| School of Foundation Studies | 6,628,610 | – | – | 6,628,610 |
| Human Resources Dev. Centre | 25,823,668 | – | – | 25,823,668 |
| Institute of Continuing Education | 13,106,864 | – | – | 13,106,864 |
| Sub-total | *98,248,457 | 26,654,791 | 6,051,000 | **130,954,248 |
In the Bursar’s submission to Council, the sub-totals marked with single and double asterisks were erroneously given as
N 91,888,456 & N 124,594,247 respectively
(Source: 2020 Recurrent Estimates, Expenditure Summary as Approved by Unit/Department(s), Table 7, Page 58)
- With 0 out of 30 and 3 out of 30 IGUs captured in the 2018 and 2019 Budget Estimates, the 2018 and 2019 Budgets of the University of Lagos were passed by the Current Governing Council in error
- With only 5 out of 30 IGUs captured in the 2020 Budget Estimates, Council should not repeat the mistakes of 2018 and 2019.
2) PROBLEMS ASSOCIATED WITH THE 2018 AND 2019 BUDGETS OF THE UNIVERSITY OF LAGOS
The 2018 and 2019 Budgets of the University of Lagos were passed by the current Governing Council in error, because the Prof. Ogundipe led Management misled Council by providing inaccurate figures.
Table 1: Some Expenditure Items Presented in 12-Months Budget Performance Reports
The Estimates are obtained from the Budget Books of the University
The Actual Spent are from the Budget Performance Reports presented by the Bursar
| 2018 Budget | 2019 Budget | ||||||
| S/N | Code | Description | 2018 Estimates | Actual Spent (12 Months) | 2019 Estimates | Actual Spent (12 Months) | |
| 1 | 22-2025-1 | Special Duty Allowance | 5,000,000.00 | Not Reported | 2,500,000.00 | Not Reported | |
| 3 | 22-2056-1 | Motor Vehicle Running Cost | 4,000,000.00 | 45,209,745.08 | 3,000,000.00 | 37,511,524.80 | |
| 4 | 22-2057-1 | Printing & Stationeries | 45,000,000.00 | 84,033,419.50 | 45,000,000.00 | 78,890,826.50 | |
| 5 | 22-2058-5 | Direct Teaching and Laboratory Cost | 64,585,850.00 | 31,761,355.00 | 64,585,850.00 | 31,666,134.26 | |
| 6 | 22-2067 | Maint. of Air-conditioners | 500,000.00 | 18,018,999.71 | No Estimate | *9,547,243.50 | |
| 7 | 23-2080-1 | Other Operating Expenses | 45,000,000.00 | 208,445,429.45 | 40,000,000.00 | 179,457,378.46 | |
| 8 | 23-2080-2 | Refreshments at Meetings | 15,000,000.00 | 28,944,698.80 | 11,250,000.00 | 27,289,374.13 | |
| 9 | 23-2081 | Legal Fees | 20,000,000.00 | 21,266,614.25 | 18,750,000.00 | Not Reported | |
| 10 | 23-2082 | Staff Dev. & Train. Fund (Non-Acad.) | 80,000,000.00 | 87,884,422.50 | 80,000,000.00 | 81,164,152.27 | |
| 11 | 23-2083-1 | Other Welfare Packages | 75,000,000.00 | 77,094,184.29 | 37,500,000.00 | 37,121,828.00 | |
| 12 | 23-2084 | Membership of Professional Bodies | 2,000,000.00 | 1,168,400.00 | 1,500,000.00 | 300,000.00 | |
| 13 | 23-2090 | Hospitality | 100,000,000.00 | 119,213,170.99 | 100,000,000.00 | 107,993,705.15 | |
| 2018 Budget | 2019 Budget | ||||||
| S/N |
