Federal Government has planned to permanently stop deductions for revenue collection costs paid to agencies like FIRS, Customs, and the Upstream Petroleum Regulatory Commission, aiming to improve fiscal transparency and ensure more funds reach federal, state, and local governments.
Minister of Finance Wale Edun announced that these deductions, previously deducted before revenue sharing, have been largely eliminated following a presidential directive. The reforms are part of broader efforts to strengthen fiscal governance, promote transparency, and ensure efficient use of collected revenues for development.
Despite rising revenue collections in 2025, significant portions are still lost to deductions, which critics say hinder fiscal efficiency. The World Bank further noted Nigeria’s improved revenue but emphasized the need for better use of funds, reduced inflation, and expanded social safety nets. The government is also implementing targeted measures, including cash transfer programs reaching 10 million households, to support vulnerable populations.
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