By Newspot Nigeria News Desk
President Bola Ahmed Tinubu has ended the long-standing “cost of collection” system in Nigeria’s revenue agencies. The move stops bodies like the FIRS, Customs, and NUPRC from retaining large sums before remitting to the government. All revenues must now be paid directly into the Federation Account.
The announcement was made by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, who emphasized that every kobo collected must now go into the Federation Account, in full compliance with the Nigerian Constitution.
Previously, these agencies deducted significant amounts as operational costs before remittance, reducing what was available for the federal, state, and local governments through the Federation Account Allocation Committee (FAAC). For example, FIRS alone retained over ₦250 billion in 2024 as cost of collection.
With this reform, more funds will now be available for infrastructure, education, healthcare, and job creation, ensuring Nigerians feel the direct impact of public revenues.
“This is about fairness, transparency, and accountability. Nigerians deserve to feel the impact of every naira collected,” Edun stated, calling the directive a major step toward fiscal responsibility.
The policy aligns with Tinubu’s Renewed Hope Agenda, promoting fiscal discipline and equitable resource distribution. It also complements the government’s cash transfer program, which will reach 10 million vulnerable households by October 2025 and expand to 50 million by year’s end.
Economists have hailed the move as a major milestone in Nigeria’s fiscal history, marking the beginning of a more transparent and accountable financial system.
This report is published by Newspot Nigeria.
