FG: FIRS, Customs Still Deduct Collection Costs at Source

The Federal Ministry of Finance has debunked reports suggesting that the government has stopped revenue-generating agencies such as the Federal Inland Revenue Service (FIRS), the Nigeria Customs Service (NCS), and others from deducting their cost of revenue collection at source.

In a statement released on Friday through its official X (formerly Twitter) handle, the Ministry’s spokesperson, Mohammed Manga, clarified that there has been no change to the existing policy.

The clarification follows claims attributed to Finance Minister Wale Edun, alleging that the government had halted the practice. However, the Ministry stated that at no point during Edun’s remarks at the Nigeria Development Update Programme hosted by the World Bank did he announce or imply any such policy shift.

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“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 the 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 emphasized that the current cost of collection framework remains in effect. What is currently under consideration, it explained, is a review of the cost of collection structure in line with President Bola Ahmed Tinubu’s directive to strengthen transparency and efficiency in public finance.

According to the statement, these discussions are still ongoing and form part of wider fiscal reforms. No final decision has been made.

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The Ministry assured stakeholders that revenue operations are continuing as normal and that any future adjustments to the policy will follow due process, involve stakeholder consultations, and be clearly communicated to the public.