In a landmark move to boost transparency and strengthen Nigeria’s economy, President Bola Ahmed Tinubu has abolished the long-standing practice where revenue-generating agencies like the Federal Inland Revenue Service (FIRS), Nigeria Customs Service (NCS), and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) withheld huge sums as their “cost of collection.”

 

The new directive, announced by Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, mandates that every kobo collected must now go directly into the Federation Account, as required by the Constitution.

Until now, agencies deducted massive amounts before remitting funds — for instance, FIRS alone retained over ₦250 billion in 2024. This practice reduced what was available for federal, state, and local governments through the Federation Account Allocation Committee (FAAC).

 

With Tinubu’s reform, more money will now be available to fund roads, schools, hospitals, jobs, and critical infrastructure across the country.

 

> “This is about fairness, transparency, and accountability. Nigerians deserve to feel the impact of every naira collected,” Edun emphasized.

 

The policy also ties into Tinubu’s Renewed Hope Agenda, ensuring fiscal discipline while funding social protection programs. This October, the government is reaching 10 million vulnerable households with direct cash transfers, with a target to cover 50 million households by year’s end.

 

Analysts hail the reform as a “turning point in Nigeria’s fiscal history”, marking the end of leakages and a bold step toward a transparent, people-driven economy.