— FIRS, Customs, NUPRC Can No Longer Keep Billions as ‘Cost of Collection’
In a sweeping reform aimed at deepening transparency and strengthening Nigeria’s public finances, President Bola Ahmed Tinubu has ordered an end to the long-standing practice that allowed key revenue generating agencies to retain portions of government income as their “cost of collection.”
Under the new directive, announced by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, all revenues collected by agencies such as the Federal Inland Revenue Service (FIRS), Nigeria Customs Service (NCS), and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) must now be remitted in full to the Federation Account in line with constitutional provisions.
Previously, these agencies deducted significant sums before remitting to the Federation Account Allocation Committee (FAAC). For instance, FIRS reportedly retained over ₦250 billion in 2024 alone.
Edun described the reform as a major step toward fiscal justice and accountability. “This is about fairness, transparency, and accountability. Nigerians deserve to feel the impact of every naira collected,” he said.
The new policy is expected to increase funds available to the three tiers of government, boosting the capacity to invest in infrastructure, education, healthcare, and job creation nationwide.
The move also aligns with President Tinubu’s Renewed Hope Agenda, which prioritizes fiscal discipline and social welfare. This October, the government is disbursing direct cash transfers to 10 million vulnerable households, with a plan to reach 50 million by year’s end.
Economic analysts have described the decision as a “turning point in Nigeria’s fiscal history,” hailing it as a bold and people-centered reform that could close long-standing leakages and restore public trust in government revenue Management.
