The Federal Government has debunked reports claiming it has stopped revenue-generating agencies from deducting their cost of collection at source, saying no such policy change has been made.
In a statement on Friday, Mohammed Manga, Director of Information and Public Relations at the Federal Ministry of Finance, clarified that agencies such as the Federal Inland Revenue Service (FIRS), Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and Nigeria Customs Service (NCS) will continue to deduct collection costs as provided under the existing framework.
“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 further noted that no announcement was made by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, during the Nigeria Development Update (NDU) event hosted by the World Bank, indicating any modification of 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,” it added.
Manga explained that while the Federal Government is currently reviewing the cost-of-collection structure in line with President Bola Ahmed Tinubu’s directive to enhance transparency, efficiency, and value-for-money, no final decision has been reached.
The clarification aims to reassure the public and stakeholders that the existing revenue collection arrangements remain unchanged until further notice.
