The Federal Government has reaffirmed that there is no change in policy regarding the deduction of collection costs by key revenue-generating agencies, contrary to recent media reports.
In a statement issued by Mohammed Manga, Director of Information and Public Relations at the Federal Ministry of Finance, the government dismissed claims that the Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS), and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) would no longer deduct their collection costs at source.
“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 FIRS, NUPRC, and NCS to deduct their cost of collection at source. We categorically state that these reports are inaccurate and misleading,” the statement read.
The ministry emphasised that no announcement was made by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, at the Nigeria Development Update (NDU) programme hosted by the World Bank that would indicate any modification of the existing policy.
“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 ministry added.
The ministry, however, confirmed that ongoing discussions are being held to review the cost-of-collection structure in line with President Bola Tinubu’s directives to enhance transparency, efficiency, and value-for-money in public finance management, but noted that no final decision has been reached.
The clarification aims to reassure the public and stakeholders that FIRS, NUPRC, and NCS will continue to deduct their cost of collection at source under the existing policy framework.
