Finance Ministry Denies Stopping Cost of Collection Deductions by FIRS, Customs

The Federal Ministry of Finance has refuted recent media reports claiming that the Federal Government has halted the practice of allowing key revenue-generating agencies to deduct their cost of collection at source.

In an official statement signed by Mohammed Manga, Director of Information and Public Relations, the Ministry described the reports as “inaccurate and misleading.”

According to the statement, at no point during his remarks at the World Bank-hosted Nigeria Development Update (NDU) programme did the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, suggest any change to the current 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 emphasized.

Agencies such as the Federal Inland Revenue Service (FIRS), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigeria Customs Service (NCS) are among those authorised under the existing system to deduct their collection costs directly.

The Ministry clarified that while there are ongoing policy discussions aimed at reviewing the cost-of-collection structure, no final decisions have been reached.

These discussions, it said, align with President Bola Ahmed Tinubu’s directive to improve “transparency, efficiency, and value-for-money in public financial management.”

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Reassuring stakeholders, the Ministry confirmed that all revenue operations are proceeding without disruption and that any future changes will follow due process, stakeholder engagement, and clear communication.

The Ministry also urged media outlets to verify information with official sources before publication to avoid creating unnecessary confusion.

“The Ministry appreciates the continued support of Nigerians as we work collectively to build a stronger, more transparent, and sustainable economy,” the statement concluded.