Nigeria’s Ministry of Finance has denied reports that the federal government altered the “cost of collection” policy for key revenue agencies, saying the existing framework remains in place.
In a statement on Friday, Mohammed Manga, Director of Information and Public Relations at the ministry, said media claims that Minister of Finance and Coordinating Minister of the Economy Wale Edun announced revisions were “inaccurate and misleading.”
“At no point during his remarks at the Nigeria Development Update (NDU) programme hosted by the World Bank did the Honourable Minister… announce or imply any change to the existing policy on the cost of collection deductions,” Manga said. “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 clarification comes after speculation that Abuja had moved to adjust the formula that allows agencies such as the Federal Inland Revenue Service (FIRS), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigeria Customs Service (NCS) to net off an agreed percentage for collection expenses before remitting revenues to the federation.
Manga noted that policy discussions are ongoing in line with President Bola Tinubu’s directive to review the cost-of-collection structure to boost transparency, efficiency and value-for-money across public finances. However, he stressed that “no final decision has been made.”
“The ministry assures all stakeholders and the public that revenue operations continue uninterrupted and that any future adjustments will be guided by due process, stakeholder engagement, and clear communication,” the statement added.
The finance ministry also urged media organisations to verify claims with official sources to avoid public confusion, and thanked Nigerians for their support “as the government works towards building a stronger, more transparent, and sustainable economy.”
The cost-of-collection model has long been a sensitive piece of Nigeria’s revenue architecture. Supporters argue it incentivises agencies to improve compliance and collections, while critics say it can obscure true administrative costs and reduce net remittances. The Tinubu administration’s broader fiscal reset—spanning subsidy reforms, FX unification and debt management—has sharpened attention on how much revenue is raised, who collects it, and what it costs to do so.
