By Charles Maduka
The Federal Government has announced that it will permanently stop deductions made for the cost of revenue collection by agencies such as the Federal Inland Revenue Service, Nigerian Customs Service, and the Nigerian Upstream Petroleum Regulatory Commission.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, disclosed this during a panel session at the launch of the World Bank’s Nigeria Development Update in Abuja. He said the move followed a presidential directive aimed at ensuring more transparent and efficient management of public funds.
According to Edun, several layers of deductions previously made before the Federation Account Allocation Committee shared revenue have now been scrapped. He explained that the reform will allow more funds to reach the federal, state, and local governments for development purposes.
Edun added that the government is reviewing all forms of deductions from gross revenues, including refunds and interventions, to ensure that every collected naira is used for national development. He emphasized that transparency and efficiency are key to achieving fiscal sustainability and strengthening accountability.
The World Bank, in its latest report, commended Nigeria’s fiscal and monetary reforms, noting improved revenue mobilisation and a reduction in fiscal deficit. It, however, urged the government to use public funds more effectively and expand social safety nets to cushion the impact of economic adjustments on vulnerable Nigerians.
Leave a Reply