FG Denies Stopping Revenue Agencies from Deducting Cost of Collection at Source

The Federal Ministry of Finance has debunked media reports claiming that the Federal Government has stopped revenue-generating agencies from deducting their cost of collection at source.

In a statement issued on Tuesday by the Director of Information and Public Relations, Mohammed Manga, the Ministry described the reports as “inaccurate and misleading.”

According to the statement, the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, did not announce or suggest any change to the existing cost-of-collection policy during his remarks at the Nigeria Development Update (NDU) programme organised by the World Bank.

“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 clarified.

It explained that ongoing policy discussions are being held in line with President Bola Ahmed Tinubu’s directive to review the cost-of-collection structure. The aim, according to the Ministry, is to improve transparency, efficiency, and value-for-money in public financial management.

The statement, however, stressed that no final decision has been reached on the matter.

“The Ministry assures all stakeholders and the public that revenue operations continue uninterrupted and that any future adjustments will follow due process, stakeholder engagement, and clear communication,” it added.

The Finance Ministry also urged media organisations to verify information from official sources before publication to avoid misleading the public.

The cost-of-collection arrangement allows revenue agencies such as the Federal Inland Revenue Service (FIRS), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigeria Customs Service (NCS) to retain a percentage of the revenues they collect to cover operational expenses.