The federal government has clarified that there has been no change in policy regarding the deduction of collection costs by revenue-generating agencies, following reports suggesting otherwise.

The statement, issued by Mohammed Manga, Director of Information and Public Relations at the Ministry of Finance, addressed concerns that the Federal Inland Revenue Service (FIRS), Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigeria Customs Service (NCS) would no longer deduct such 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.

While confirming that discussions are ongoing regarding the review of the cost-of-collection structure, the statement noted that these deliberations are in line with directives from President Bola Ahmed Tinubu aimed at improving transparency, efficiency, and value-for-money in public financial management. “However, no final decision has been made on this matter,” it stressed.

The clarification seeks to reassure stakeholders and the public that the deduction of costs at source by FIRS, NUPRC, and NCS remains operational under the current policy framework.