Finance Ministry denies stopping cost-of-collection deductions for FIRS, others

The Federal Ministry of Finance has dismissed studies claiming that the Federal Authorities has stopped revenue-generating companies from deducting their value of assortment at supply, describing such studies as “inaccurate and deceptive.”

Director of Info and Public Relations on the Ministry, Mohammed Manga, in a press release issued on Friday evening, stated there was no coverage change concerning how companies such because the Federal Inland Income Service (FIRS), the Nigerian Upstream Petroleum Regulatory Fee (NUPRC), and the Nigeria Customs Service (NCS) handle their value of assortment.

“The Honourable Minister of Finance and Coordinating Minister of the Economic system, Mr. Wale Edun, didn’t announce or suggest any change to the present coverage throughout his remarks on the Nigeria Improvement Replace (NDU) programme hosted by the World Bank,” the assertion clarified.

Discussions ongoing

The Ministry defined that whereas discussions are ongoing about reviewing the cost-of-collection construction in step with President Bola Tinubu’s directive to enhance transparency and effectivity in public finance, including that no remaining determination has been made.

“These discussions kind a part of broader efforts to reinforce transparency, effectivity, and value-for-money in public monetary administration. Income operations proceed uninterrupted, and any future changes will observe due course of, stakeholder engagement, and clear communication,” the assertion famous.

• It additionally urged media organisations to confirm info from official sources earlier than publication to keep away from pointless confusion among the many public.
• The associated fee-of-collection coverage permits sure authorities companies to deduct an agreed share of the revenues they generate equivalent to taxes, customs duties, and royalties to fund their operations earlier than remitting the stability to the Federation Account.

Backstory

Studies had emerged on-line claiming that the federal government had ended the long-standing follow permitting revenue-generating companies equivalent to FIRS, Customs, and NUPRC to retain parts of collected funds as “value of assortment.”

The studies attributed the announcement  of the brand new coverage to the Minister of Finance and Coordinating Minister of the Economic system, Wale Edun, who was quoted as saying that support all revenues would now circulate instantly into the Federation Account (FAAC).

The transfer was reported to have been geared toward selling fiscal transparency and guaranteeing larger funds for federal, state, and native governments.

Nevertheless, the Ministry’s assertion has debunked all of the claims.

What you must know

In August, Nairametrics reported that President Bola Tinubu had ordered a assessment of deductions and income retention practices by main federal revenue-generating companies within the nation.

• This was a part of the hassle to enhance public financial savings, increase spending effectivity, stimulate funding, and unlock assets for progress.
• The Minister of Finance and Coordinating Minister of the Economic system, Wale Edun, who disclosed this whereas briefing the state home correspondent on the Presidential Villa, said that President Tinubu gave the directive throughout the Federal Government Council (FEC) assembly held on Wednesday, August 13, 2025..