The Federal Government has announced the abolition of deductions from revenue collections by its ministries, departments, and agencies (MDAs), pledging a renewed commitment to transparency, accountability, and efficient public finance management. The move, according to government officials, is aimed at ensuring that every kobo generated by revenue-collecting agencies is remitted directly into the Federation Account without unauthorized deductions.
In a statement issued on Wednesday, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the decision was part of the government’s broader fiscal reforms to enhance revenue mobilization and block leakages in public finance. He explained that the new directive followed a review of the existing revenue collection process, which revealed that several agencies had been making deductions at source before remitting funds to the government.
Edun noted that such practices had undermined fiscal discipline and transparency, resulting in significant revenue shortfalls and weak accountability mechanisms. He stated that the administration of President Bola Tinubu was determined to strengthen fiscal responsibility by enforcing full remittances and ensuring that all expenditures are duly approved through the national budget.
According to the minister, the reform would be implemented in collaboration with the Office of the Accountant-General of the Federation and the Fiscal Responsibility Commission. He assured that technology-driven systems would be deployed to monitor inflows in real-time, track compliance, and improve reporting accuracy across MDAs.
The finance ministry also disclosed plans to review the revenue targets of key agencies to reflect current economic realities and encourage improved performance. Edun emphasized that while the government is committed to increasing its non-oil revenue base, transparency in revenue administration remains critical to achieving sustainable economic growth.
Fiscal policy analysts have applauded the decision, describing it as a step toward restoring public trust and strengthening Nigeria’s fiscal stability. They noted that removing deductions at source would help create a more transparent revenue framework and ensure equitable distribution of funds among the three tiers of government.
The Federal Government reaffirmed that the reform aligns with its economic renewal agenda, which seeks to optimize revenue, promote good governance, and deliver measurable value to citizens. It also warned agencies against violating the new directive, stating that defaulters would face strict sanctions in line with public finance regulations.
