The Federal Government has announced plans to permanently halt deductions for the cost of revenue collection paid to agencies such as the Federal Inland Revenue Service, the Nigerian Customs Service, and the Nigerian Upstream Petroleum Regulatory Commission, among others.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this on Wednesday in Abuja while speaking at a panel session after the launch of the October 2025 edition of the World Bank’s Nigeria Development Update, titled “From Policy to People: Bringing the Reform Gains Home.”
Edun revealed that following a presidential directive, several layers of deductions previously made before sharing proceeds from the Federation Account Allocation Committee have now been scrapped to improve fiscal transparency and ensure that more resources reach the three tiers of government.
“Funds have flowed to the Federation Account, but the point is this: efficiency of that spending is critical We have been mandated by His Excellency, President Bola Tinubu to take a look at deductions, not just the deductions for cost of collection, but deductions generally, as we saw, when you look at the gross figure, you see all kinds of deductions before you get to the net distributable figure, which goes to the federal state and local governments. And I must inform that even during the last FAC allocation, most of those deductions have been removed once and for all.”