The Federal Government has announced plans to permanently end deductions for revenue collection costs paid to agencies such as the Federal Inland Revenue Service, Nigerian Customs Service, and the Nigerian Upstream Petroleum Regulatory Commission.
Finance Minister Wale Edun said yesterday in Abuja while speaking at a panel session after the launch of the October 2025 edition of the World Bank’s Nigeria Development, that President Tinubu had directed the move to ensure more funds flow directly into the Federation Account and are distributed among federal, state, and local governments without intermediary deductions.
He explained that the reform aims to enhance fiscal transparency, accountability, and efficiency, adding that recent FAAC allocations were made without the usual deductions.
Futhermore,the minister said the government is reviewing all forms of revenue deductions, including refunds and interventions, to ensure efficient resource use and stronger fiscal sustainability.