The Nigerian government has clarified that it has not discontinued the practice of allowing revenue-generating agencies to deduct the cost of revenue collection at source. This comes after claims emerged that the federal government had stopped the Federal Inland Revenue Service, the Nigeria Customs Service, and other agencies from deducting these costs.
The spokesperson for the Ministry of Finance, Mohammed Manga, issued a statement on the ministry’s official social media account to address the reports, which were attributed to the Minister of Finance, Wale Edun. According to the ministry, Edun never made such a statement during his remarks at the Nigeria Development Update Programme hosted by the World Bank.
The federal government stressed that 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, and revenue operations continue uninterrupted. The Ministry of Finance explained that ongoing policy discussions are underway to review the cost of collection structure, in line with President Bola Ahmed Tinubu’s administration’s goal of enhancing transparency in the country’s revenue collection.
These discussions aim to improve efficiency, transparency, and value for money in public financial management. However, no final decision has been made on this matter. The ministry assured stakeholders and the public that any future adjustments would be guided by due process, stakeholder engagement, and clear communication.
The clarification is significant, as it affects the operations of key revenue-generating agencies, including the Federal Inland Revenue Service, the Nigerian Upstream Petroleum Regulatory Commission, and the Nigeria Customs Service. The government’s decision to maintain the current framework ensures continuity in revenue collection and provides stability for these agencies.
The review of the cost of collection structure is part of the government’s broader efforts to strengthen public financial management and promote transparency. As the government continues to engage stakeholders and discuss potential adjustments, it is likely that further updates will be provided in due course. For now, the ministry’s clarification provides reassurance that revenue operations will continue uninterrupted, and any changes will be implemented in a transparent and orderly manner.