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 clarification follows reports that the federal government had stopped the Federal Inland Revenue Service, the Nigeria Customs Service and other agencies from making such deductions.
Mohammed Manga, spokesperson for the Ministry of Finance, addressed the rumors on the ministry’s official social media account, noting that the claims were incorrectly attributed to Finance Minister Wale Edun. The ministry confirmed that Edun never made any statement to that effect during his remarks at the Nigeria Development Update Programme hosted by the World Bank.
Accordingly, the federal government stressed that there has been no policy change regarding the deduction of collection costs by revenue‑generating agencies. The existing framework remains in effect and revenue operations continue uninterrupted.
The Ministry of Finance added that policy discussions are ongoing to review the cost‑of‑collection structure, aligning with President Bola Ahmed Tinubu’s administration’s goal of enhancing transparency in revenue collection. These talks aim to improve efficiency, transparency and value for money in public financial management, but no final decision has been reached.
The ministry assured stakeholders and the public that any future adjustments will follow due process, involve stakeholder engagement and be communicated clearly. This clarification is significant for the operations of key agencies such as the Federal Inland Revenue Service, the Nigerian Upstream Petroleum Regulatory Commission and the Nigeria Customs Service. Maintaining the current framework ensures continuity in revenue collection and provides stability for these agencies.
The review of the cost‑of‑collection structure forms part of the government’s broader effort to strengthen public financial management and promote transparency. As discussions continue, further updates are expected. For now, the ministry’s statement reassures that revenue operations will proceed without interruption and any changes will be implemented transparently and orderly.
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