The Ministry of Finance has clarified that it has not discontinued the practice of allowing revenue-generating agencies such as the Federal Inland Revenue Service, the Nigeria Customs Service and others to deduct cost of revenue collection at source.

The spokesperson of the Ministry, Mohammed Manga, made this clarification known in a statement on the Ministry’s official X account on Friday.

This comes amid claims attributed to the Minister of Finance, Wale Edun, that the federal government has stopped revenue-generating agencies from deducting the cost of collection at source.

Reacting, the Federal government said at no time did Edun make such a statement during his remarks at the Nigeria Development Update Programme hosted by the World Bank.

The federal government stressed that there has been no policy change regarding the deduction of costs of collection at source by revenue-generating agencies.

According to the Ministry of Finance, what is currently ongoing is the possible revenue of the cost of collection structure in line with President Bola Ahmed Tinubu’s administration to entrench transparency in the country’s revenue collection.

“The Federal Ministry of Finance wishes to address recent media reports suggesting that the Federal Government has discontinued the practice of allowing revenue-generating agencies such as the Federal Inland Revenue Service (FIRS), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigeria Customs Service (NCS) to deduct their cost of collection at source.

“We categorically state that these reports are inaccurate and misleading.

“At no point during his remarks at the Nigeria Development Update (NDU) programme hosted by the World Bank did the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, announce or imply any change to the existing policy on the cost of collection deductions.

“For the avoidance of doubt, there has been no policy change regarding the deduction of costs of collection at source by revenue-generating agencies. The current framework remains in effect.

“What is underway are ongoing policy discussions in line with the directives of His Excellency, President Bola Ahmed Tinubu, to review the cost of the collection structure. These discussions are part of broader efforts to enhance transparency, efficiency, and value for money in public financial management. However, no final decision has been made on this matter.

“The Ministry assures all stakeholders and the public that revenue operations continue uninterrupted and that any future adjustments will be guided by due process, stakeholder engagement, and clear communication,” the statement reads.