No More Deductions by FIRS, Customs, Others – FG

The Federal Government has announced that revenue-generating agencies will no longer be allowed to retain a portion of the funds they collect.

Persecondnews reports that the decision aims to enhance fiscal transparency and ensure that increased financial resources are accessible for both national and local governments.

“When you look at the gross figure, you see all kinds of deductions before you get to the net distributable figure, which goes to the federal, state, and local governments.

” I must inform you that even during the last FAAC allocation, most of those deductions have been removed once and for all,” said Mr. Wale Edun, Minister of Finance and Coordinating Minister of the Economy at the unveiling of the National Development Update on Thursday.

The Constitution stipulates that funds should flow from revenue-collecting agencies into the Federation Account and be distributed according to the set formula

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) previously kept approximately four percent of the royalties, rents, and other income it gathered for the Federation Account.

Similarly, the Federal Inland Revenue Service (FIRS) retained N254.82 billion in 2024 and was expected to obtain N43.83 billion for the first half of 2025 as a cost for collection.

The Nigeria Customs Service (NCS) has also been affected, with a new four percent Free on Board (FOB) levy on imports replacing the previous seven percent allocation for collection costs.

The Minister highlighted the current initiatives in social protection, emphasizing their key role in President Tinubu’s Renewed Hope Agenda.

“We are still implementing the first stage of the social safety net, the direct benefit transfers.

“By the end of October, we will have covered about 10 million households, reaching 50 million Nigerians,” Edun said.

The government aims to safeguard the most vulnerable Nigerians and ensure they are not left behind in the economic reforms.