Presidential Committee Bars Customs, 62 Other MDAs from Direct Revenue Collection

The Nigeria Customs Service, along with 62 other Ministries, Departments, and Agencies (MDAs) of the Federal Government, will no longer be allowed to collect revenue directly, the Presidential Committee on Tax Policy and Fiscal Reforms has announced.

According to the Chairman of the Committee, the responsibility for revenue collection will now rest solely with the Federal Inland Revenue Service (FIRS).

He noted that Nigeria continues to record one of the lowest revenue collection rates globally, coupled with one of the highest collection costs. This move, he said, is part of broader efforts to streamline revenue channels, reduce inefficiencies, and cut down on the high cost of revenue collection.

Currently, about 63 MDAs are tasked with meeting revenue targets, with some reportedly retaining up to 20% of collected funds as collection costs.

The committee observed that these agencies are often sidetracked from their core mandates by their involvement in revenue generation, a role they are neither structurally equipped nor institutionally established to perform effectively.

“This reform will not only improve efficiency but also promote transparency and accountability in the management of taxpayers’ money,” the chairman said. “More importantly, it will rebuild public confidence in the nation’s revenue system.”

The decision underscores the government’s commitment to fiscal discipline, improved coordination, and better utilization of public funds.