The Federal Government has clarified that it has not halted the existing practice that allows revenue-generating agencies such as the Federal Inland Revenue Service (FIRS), the Nigeria Customs Service (NCS), and others to deduct their cost of revenue collection at source.

This clarification was issued in a statement by the Ministry of Finance spokesperson, Mohammed Manga, and shared via the Ministry’s official X handle on Friday.

The statement followed reports claiming that the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, had announced the discontinuation of such deductions during his remarks at the Nigeria Development Update Programme organized by the World Bank.

Responding to the reports, the Federal Government described the claims as false and misleading, stating that Edun made no such declaration during the event.

The Ministry emphasized that there has been no change in government policy regarding cost-of-collection deductions by revenue-generating agencies.

According to the statement, what is currently being considered is a possible review of the cost-of-collection framework in line with President Bola Ahmed Tinubu’s directive to strengthen transparency and accountability in the nation’s revenue administration.

“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 the Federal Inland Revenue Service (FIRS), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigeria Customs Service (NCS) to deduct their cost of collection at source.

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 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.

What is underway are ongoing policy discussions in line with the directives of His Excellency, President Bola Ahmed Tinubu, to review the cost-of-collection structure. These discussions are part of broader efforts to enhance transparency, efficiency, and value for money in public financial management. However, no final decision has been made on this matter.

The Ministry assures all stakeholders and the public that revenue operations continue uninterrupted and that any future adjustments will follow due process, stakeholder consultation, and clear communication,” the statement read.