In fulfilment of the agreement reached between the Federal Government and university teachers, the Minister of Education, Dr Tunji Alausa, has asked universities to commence the payment of the tax-free Consolidated Academic Tools Allowance across the country.
The allowance, which ranges from a little over N1 million yearly for graduate assistants and assistant lecturers to over N3 million for professors, is expected to bump up the take-home pay of university teachers.
According to the memo signed on Friday by the minister, all federal universities are to begin the payment of the Consolidated Academic Tools Allowance (CATA) to academic staff, even as the 2026 budget approval process continues.
While emphasising the need to commence the payment, Alausa, in the memo sent to all federal universities, noted that the tax-free allowance was part of the executed FGN-ASUU 2025 Agreement.
He directed federal university authorities to mobilise available resources to ensure prompt implementation.
The minister highlighted the broader impact of timely payment, adding: “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 also sent to the Executive Secretary of the National Universities Commission, alongside all vice chancellors of federal universities, for information and immediate action.
The Consolidated Academic Tolls Allowance (CATA) is a specific financial component of the salary structure for University Academic Staff in Nigeria. It was done by the Tinubu administration as a job-specific, tax-exempt allowance that supports the core research, teaching, and intellectual activities of university academics.
With the new FG agreement with university teachers, CATA is part of a Dual Salary Structure. Now, university academic staff salaries are split into two main parts:
(a) CONUASS (Consolidated University Academic Staff Salary): The base salary, which is subject to standard tax rules.
(b) CATA (Consolidated Academic Tools Allowance): A separate, additional allowance intended for work-related tools and activities.
The purpose of CATA is not a general bonus, but a job-specific emolument intended to cover the costs associated with academic work, such as research materials, software, books, field work, and other scholarly tools necessary for university lecturers to perform their duties effectively.
And based on extant Nigerian tax law, CATA is Tax-Exempt: It is not subject to personal income tax. This exemption is grounded in:
(i). The Personal Income Tax Act (PITA), Section 3(1)(b).
(ii). The Nigerian Tax Act 2025, Chapter 2, Part 1, 4 (2) (a).
However, CONUASS is taxable; being the base salary, it is also subject to applicable tax reliefs and deductions.
CATA was introduced as part of a 40% review of academic compensation.
It is a distinctive feature “peculiar to University Academic Staff,” highlighting its role as a targeted incentive and support mechanism for the academic profession
