The Federal Government has directed all federal universities to commence the payment of the tax-free Consolidated Academic Tools Allowance (CATA) to academic staff, in line with the 2025 agreement reached with university teachers.
Minister of Education, Dr. Tunji Alausa, gave the directive in a memo signed on Friday, instructing vice chancellors to begin implementation even as the 2026 budget approval process continues.
The allowance, which ranges from a little over N1 million annually for graduate assistants and assistant lecturers to more than N3 million for professors, is expected to significantly increase the take-home pay of lecturers.
Alausa emphasised the need for immediate compliance, noting that the allowance forms part of the executed Federal Government–ASUU 2025 Agreement. He directed federal universities to mobilise available resources to ensure prompt payment.
“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,” the minister stated.
Copies of the directive were also sent to the Executive Secretary of the National Universities Commission and all vice chancellors of federal universities for immediate action.
CATA is a key component of a newly structured Dual Salary System for university academic staff. Under the arrangement, lecturers’ earnings are divided into two main parts:
CONUASS (Consolidated University Academic Staff Salary): The base salary, which is subject to personal income tax and other statutory deductions.
CATA (Consolidated Academic Tools Allowance): A separate, tax-exempt allowance designed to support academic work.
Unlike a general bonus, CATA is intended to cover costs directly associated with teaching and research, including books, research materials, software, fieldwork, and other scholarly tools necessary for effective performance.
The tax exemption status of CATA is backed by provisions of the Personal Income Tax Act (PITA), Section 3(1)(b), and the Nigerian Tax Act 2025, Chapter 2, Part 1, 4(2)(a). In contrast, CONUASS remains taxable, subject to applicable tax reliefs and deductions.
The allowance was introduced as part of a 40 per cent review of academic compensation and is described as a distinctive feature peculiar to university academic staff.
Education stakeholders believe the implementation of CATA could ease longstanding tensions between the government and university lecturers, while improving morale and strengthening the overall academic environment in federal universities.
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