NIGERIA: FG Clarifies Position on Revenue Collection Policy

By Hamzat Ameenat, Abuja, Nigeria

The Federal Government has debunked media reports claiming it has stopped revenue-generating agencies from deducting their cost of collection at source, describing the reports as inaccurate and misleading.

In a statement issued on Wednesday by the Federal Ministry of Finance in Abuja, signed by Mohammed Manga, FCAI, Director of Information and Public Relations, the Ministry clarified that there has been no change to the existing policy that allows agencies such as the Federal Inland Revenue Service (FIRS), the Nigeria Customs Service (NCS), and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to deduct their cost of collection before remitting revenues to the Federation Account.

The Ministry explained that at no point during his remarks at the World Bank’s Nigeria Development Update (NDU) programme did the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, announce or imply any discontinuation of the current system.

The statement read: “For the avoidance of doubt, there has been no policy change regarding the deduction of costs of collection at source by revenue-generating agencies. The current framework remains in effect,”

It, however, confirmed that policy discussions are ongoing in line with President Bola Ahmed Tinubu’s directive to review the cost of collection structure.

The review, according to the Ministry, is part of wider efforts to promote transparency, efficiency, and value-for-money in public financial management.

“No final decision has been made on this matter,” the Ministry added, emphasizing that revenue operations continue without disruption and that any future adjustments would follow due process, stakeholder consultations, and clear communication.

The Ministry also urged media organisations to verify information through official sources before publication to avoid public confusion and misinformation.