The federal government declared yesterday that there was no policy change regarding the deduction of costs of collection at source by revenue-generating agencies.

In a statement issued by the Director, Information and Public Relations, Ministry of Finance, Mohammed Manga, the government said it had not discontinued the practice of allowing revenue-generating agencies such as the Federal Inland Revenue Service (FIRS), Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigeria Customs Service (NCS) to deduct their costs of collection at source.

The clarification, it said, became necessary to address recent media reports suggesting that the federal government had discontinued the practice.

The statement read: ?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.?

It added that there are ongoing policy discussions in line with the directives of President Bola Ahmed Tinubu, to review cost of 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.? (This Day

Update news