By Kabiru Abdulrauf
The Federal Government has stopped revenue-generating agencies from retaining any portion of the funds they collect, ending the long-standing “cost of collection” practice.
Finance Minister and Coordinating Minister of the Economy, Wale Edun, announced this during the launch of the National Development Update in Abuja.
He said all revenues must now be paid directly into the Federation Account for sharing among the federal, state, and local governments in line with the Constitution.
Edun explained that agencies like the FIRS, Nigeria Customs Service, and NUPRC had been deducting large sums to cover operational costs a system the Tinubu administration has now abolished to promote fiscal transparency and efficiency.
He noted that despite these deductions, there had been no visible improvement in development outcomes, prompting the reform.
The minister also highlighted the government’s ongoing social protection programmes, including direct cash transfers to 10 million households, aimed at cushioning the effects of economic reforms.
Edun said the move reflects President Bola Tinubu’s commitment to accountability, efficient resource use, and inclusive economic growth.
