The Federal Ministry of Finance has dismissed reports claiming that the Federal Government has stopped revenue-generating agencies from deducting their cost of collection at source, describing such reports as “inaccurate and misleading.”
Director of Information and Public Relations at the Ministry, Mohammed Manga, in a statement issued on Friday night, said there has been no policy change regarding how agencies such as the Federal Inland Revenue Service (FIRS), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigeria Customs Service (NCS) manage their cost of collection.
“The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, did not announce or imply any change to the existing policy during his remarks at the Nigeria Development Update (NDU) programme hosted by the World Bank,” the statement clarified.
The Ministry explained that while discussions are ongoing about reviewing the cost-of-collection structure in line with President Bola Tinubu’s directive to improve transparency and efficiency in public finance, adding that no final decision has been made.
“These discussions form part of broader efforts to enhance transparency, efficiency, and value-for-money in public financial management. Revenue operations continue uninterrupted, and any future adjustments will follow due process, stakeholder engagement, and clear communication,” the statement noted.
Reports had emerged online claiming that the government had ended the long-standing practice allowing revenue-generating agencies such as FIRS, Customs, and NUPRC to retain portions of collected funds as “cost of collection.”
The reports attributed the announcement of the new policy to the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, who was quoted as saying that aid all revenues would now flow directly into the Federation Account (FAAC).
The move was reported to have been aimed at promoting fiscal transparency and ensuring greater funds for federal, state, and local governments.
However, the Ministry’s statement has debunked all the claims.
In August, Naijaonpoint reported that President Bola Tinubu had ordered a review of deductions and revenue retention practices by major federal revenue-generating agencies in the country.