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.

With the new reform, more funds will now be available to support roads, schools, hospitals, jobs, and critical infrastructure nationwide.

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

Until now, agencies have 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).