By Abiola Olawale
The Federal Government has denied reports that the government has scrapped the long-standing cost of collection deductions for key revenue agencies.
The clarification comes hot on the heels of the remarks made by Finance Minister Wale Edun, underscoring ongoing efforts to streamline Nigeria’s revenue mobilization without disrupting operations.
However, the Federal Ministry of Finance in a statement issued late Friday by Director of Information and Public Relations Mohammed Manga, emphasized that agencies like the Federal Inland Revenue Service (FIRS), Nigeria Customs Service (NCS), and Nigerian Upstream Petroleum Regulatory Commission (NUPRC) continue to deduct their operational costs directly from generated revenues.
In a statement, Manga said there has been no policy change regarding the existing cost of collection policy.
Manga said Edun did not announce or imply any such change during his remarks at the Nigeria development update (NDU) programme hosted by the World Bank.
The statement reads in part: “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.
“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.”
The director said ongoing policy discussions are in line with President Bola Tinubu’s directive to review the cost-of-collection structure as part of efforts to improve transparency, efficiency, and value-for-money in public financial management.
Manga, however, clarified that no final decision has been made.
“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,” the statement added.
