The Lagos State University (LASU) has said it stopped the remittance of staff salary deductions to the cooperatives as a result of the dip in the institution’s income caused by the COVID-19 lockdown.
This is contained in a statement by Ademola Adekoya, the Coordinator, Centre for Information, Press and Public Relations of the university.
The statement reads in part: “The remittance of staff salary deductions to Cooperatives however became a challenge starting from April this year as a result of the significant drop in the university’s income caused by the COVID- 19 lockdown.
“The finances of the university, like that of many other organisations, states and nations, was severely hit when all income-generating activities stopped due to the lockdown; we were in a situation where income (subvention from state government and IGR), was low, and yet, obligations must be met, the most important of all being staff salaries.”
The institution also said that it had met with cooperative societies and staff unions to explain the dip in finances and how to tackle the challenge since the situation was not unique to LASU.
It however noted that the poor financial fortunes of the institution did not stop it from paying salaries regularly.
“Despite the dip in the Internally Generated Revenue (IGR) of the university occasioned by the suspension of most of our academic programmes, the main source of the IGR, the university has continued to meet up with the performance of its financial obligations: staff salaries are paid latest 25th of every month; promotions of deserving staff are carried out despite its financial implications, and other ancillary expenses are also carried out by the university in spite of its lean resources,” the statement added.
Once IGR improves, the institution promised the remittance would resume.
“The university management is also fully committed to the understanding reached with the cooperatives to fully remit every monies of staff deducted as soon as the IGR improves through the full restoration of academic activities in the university, while appealing for patience from affected stakeholders.”