FG: Cost Of Revenue Collection Not Halted

The cost of revenue collection at source by revenue-generating agencies such as the Federal Inland Revenue Service (FIRS), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigeria Customs Service (NCS) has not been halted by the government, Minister of Finance and Coordinating Minister for the Economy, Mr Wale Edun, has affirmed.

The Minister’s reaffirmation put paid to the speculation that swirled in the media space of the federal government’s attempting to discontinue the age-long practice, which yields a certain percentage of revenue to certain categories of revenue-generating agencies being cost of collection.

A statement issued last night by Director of information in the ministry Mohammed Manga states as follows: “The Federal Ministry of Finance wishes to address recent media reports suggesting that the Federal Government has discontinued the practice of allowing revenue-generating agencies such as the Federal Inland Revenue Service (FIRS), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigeria Customs Service (NCS) to deduct their cost of collection at source.

“We categorically state that these reports are inaccurate and misleading”

“At no point during his remarks at the Nigeria Development Update (NDU) programme hosted by the World Bank did the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, announce or imply any change to the existing policy on the cost of collection deductions”, Manga clarified in the statement issued last night.

It adds that, “for the avoidance of doubt, 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”

“What is underway are ongoing policy discussions in line with the directives of His Excellency, President Bola Ahmed Tinubu, to review the cost of collection structure. These discussions are part of broader efforts to enhance transparency, efficiency, and value-for-money in public financial management. However, no final decision has been made on this matter”.

The Ministry assures all stakeholders and the public that revenue operations continue uninterrupted and that any future adjustments will be guided by due process, stakeholder engagement, and clear communication.