The Federal Government has abolished the long standing practice that allowed major revenue generating agencies, including the Federal Inland Revenue Service (FIRS), Nigeria Customs Service (NCS), and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC),to retain huge sums as their cost of collection.
Announcing the new policy, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, in Abuja on Thursday at the launch of the National Development Update. said all revenues must henceforth be remitted directly into the Federation Account, as required by the Constitution.
Until now, agencies deducted substantial amounts before remitting funds to the government. For example, the FIRS alone retained over ₦250 billion in 2024, reducing the funds available for federal, state, and local governments through the Federation Account Allocation Committee (FAAC).
Edun explained that the reform is part of President Bola Ahmed Tinubu’s efforts to ensure fairness, transparency, and accountability in public finance.
READ ALSO:
FG Unveils Smart Boards in Schools, Reaffirms Commitment to Digital AI-Driven Education Reform
Mental Health: NGO creates awareness in Amuwo – Odofin
“This is about fairness, transparency, and accountability. Nigerians deserve to feel the impact of every naira collected,” he said.
The new directive aligns with Tinubu’s Renewed Hope Agenda, aimed at promoting fiscal discipline and channeling more resources toward public welfare. This October, the government is reaching 10 million vulnerable households with direct cash transfers, with a goal to cover 50 million households by year’s end.
Economic analysts have hailed the move as a major breakthrough in Nigeria’s fiscal history, describing it as a decisive step toward eliminating leakages and building a transparent, people-centered economy.
About the Author
