The Federal Ministry of Finance has refuted claims that the Federal Government has suspended the cost-of-collection deductions by key revenue-generating agencies, calling the reports “false and misleading.”
In a statement issued on Friday night, the Director of Information and Public Relations, Mohammed Manga, clarified that no policy change has been made regarding how agencies like the Federal Inland Revenue Service (FIRS), the Nigeria Customs Service (NCS), and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) manage their cost-of-collection funds.
“The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, did not announce or suggest any alteration to the existing cost-of-collection framework during his remarks at the Nigeria Development Update (NDU) programme organized by the World Bank,” the statement explained.
The Ministry further noted that while ongoing discussions are taking place to review the structure of the cost-of-collection system — in line with President Bola Tinubu’s directive to enhance transparency and efficiency in public financial management — no final decision has been reached.
“These discussions are part of broader reforms aimed at improving transparency, accountability, and value-for-money in revenue administration,” the Ministry added. “Revenue operations by agencies continue as usual, and any future changes will be communicated officially after due consultation and approval.”
The Ministry also urged the media to verify information from official channels before publication to prevent unnecessary confusion.
The cost-of-collection policy allows certain federal agencies to retain a percentage of the revenues they collect — such as taxes, royalties, and duties — to fund their operations before remitting the balance to the Federation Account.
Recent online reports had alleged that the Federal Government had abolished this practice and ordered all revenues to flow directly into the Federation Account Allocation Committee (FAAC), a claim now debunked by the Finance Ministry.
In August, President Bola Tinubu had directed a review of all revenue retention and deduction practices by major federal agencies. The move, according to Minister Wale Edun, was intended to improve public savings, enhance fiscal transparency, and optimize government spending efficiency.
Emmanuel Bassey is a Financial Expert that has worked in the Banking and Finance Industry for over 15+ years across different banks in Nigeria
