The Federal Ministry of Finance has denied reports alleging that the Federal Government has stopped revenue-generating agencies from deducting their cost of collection at source, describing such claims as “inaccurate and misleading.”
In a statement released on Friday by the Director of Information and Public Relations, Mohammed Manga, the Ministry clarified that there has been no change in the existing policy guiding agencies such as the Federal Inland Revenue Service (FIRS), the Nigeria Customs Service (NCS), and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
“The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, did not announce or imply any policy change during his remarks at the Nigeria Development Update (NDU) event hosted by the World Bank,” the statement said.
The Ministry confirmed that ongoing discussions are focused on reviewing the current cost-of-collection framework in line with President Bola Tinubu’s directive to enhance transparency and efficiency in public financial management. However, it emphasized that no final decision has been reached.
“These discussions form part of broader efforts to improve value-for-money and accountability in public finance. Revenue operations remain uninterrupted, and any future adjustments will follow due process, stakeholder engagement, and official communication,” the statement noted.
It urged media outlets to verify information from official government sources before publication to prevent misinformation and public confusion.
The cost-of-collection policy permits select government agencies to retain an agreed percentage of the revenues they generate—such as taxes, customs duties, and royalties—to fund their operations before remitting the remaining balance to the Federation Account.
Reports had circulated earlier suggesting that the Ministry had abolished the practice, directing that all revenues be paid directly into the Federation Account. However, the Ministry clarified that such reports misrepresented the Minister’s comments.
In August, President Tinubu had ordered a review of revenue retention and deduction practices by key revenue-generating agencies to improve fiscal discipline, expand public savings, and unlock resources for development.
The Finance Ministry reiterated that the review process is ongoing, with a focus on ensuring that public funds are managed in a transparent, accountable, and efficient manner.
