The Federal Government has announced plans to permanently halt deductions for the cost of revenue collection previously paid to agencies such as the Federal Inland Revenue Service (FIRS), the Nigerian Customs Service (NCS), and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), among others.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, made this known on Wednesday in Abuja during a panel session following the launch of the October 2025 edition of the World Bank’s Nigeria Development Update, titled “From Policy to People: Bringing the Reform Gains Home.”
Edun revealed that President Bola Tinubu has directed the removal of several layers of deductions that used to occur before funds were distributed through the Federation Account Allocation Committee (FAAC). The move, he said, is designed to promote fiscal transparency and ensure that more revenue reaches the federal, state, and local governments.
“Funds have flowed to the Federation Account, but the point is this: efficiency of that spending is critical,” Edun stated. “We have been mandated by His Excellency, President Bola Tinubu, to take a look at deductions—not just the deductions for cost of collection, but deductions generally. When you look at the gross figure, you see all kinds of deductions before you get to the net distributable figure, which goes to the federal, state, and local governments.”
The minister emphasized that the reform would improve accountability in revenue distribution and strengthen the financial capacity of subnational governments to deliver public services effectively.
