FG Denies Ending Cost-of-Collection Deductions for Revenue Agencies
The Federal Ministry of Finance has dismissed reports claiming that the Federal Government has scrapped the existing policy allowing revenue-generating agencies to deduct their cost of collection at source.
In a statement issued on Wednesday in Abuja by the Director of Information and Public Relations, Mohammed Manga, the Ministry described the reports as “inaccurate and misleading.”
According to the statement, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, did not announce or imply any change in policy during his remarks at the World Bank hosted Nigeria Development Update (NDU) programme.
“At no point did the Honourable Minister announce or suggest that the Federal Government has discontinued the cost-of-collection deductions for agencies such as the Federal Inland Revenue Service (FIRS), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigeria Customs Service (NCS),” the statement clarified.
The Ministry emphasized that the current framework for cost-of-collection deductions remains in force and that revenue operations across the agencies are continuing without disruption.
However, it confirmed that policy discussions are ongoing in line with President Bola Ahmed Tinubu’s directive to review the structure of cost-of-collection arrangements as part of broader efforts to promote transparency, efficiency, and value-for-money in public finance management.
“What is underway are ongoing policy discussions… No final decision has been made on this matter,” the statement read.
The Finance Ministry urged media organisations to verify information from official sources before publication to avoid creating unnecessary public confusion.
It reassured Nigerians and stakeholders that any future changes to the cost-of-collection framework would follow due process, include broad stakeholder consultation, and be clearly communicated to the public.
“The Ministry appreciates the continued support of Nigerians as we work collectively to build a stronger, more transparent, and sustainable economy,” the statement added.
