President Bola Ahmed Tinubu has mandated a sweeping review of deduction and revenue retention practices across Nigeria’s major revenue-generating agencies, signaling a bold move to enhance public savings, streamline government spending, and unlock resources for economic growth.
The directive, issued during the Federal Executive Council (FEC) meeting in Abuja on Wednesday, August 13, 2025, targets some of the nation’s most critical institutions, including the Federal Inland Revenue Service (FIRS), Nigeria Customs Service, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Nigerian Maritime Administration and Safety Agency (NIMASA), and the Nigerian National Petroleum Company Limited (NNPC).
Announcing the directive to journalists, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, emphasized that the initiative reflects President Tinubu’s commitment to fiscal discipline and economic optimization.
“The President has called for a comprehensive examination of how these agencies manage deductions and retain revenues.
The goal is to ensure that Nigeria’s resources are utilized efficiently to drive sustainable growth and deliver tangible benefits to citizens,” Edun stated.
A key focus of the directive is the reevaluation of specific provisions under the Petroleum Industry Act (PIA), particularly the 30% management fee and 30% frontier exploration deduction allocated to the NNPC.
These deductions have long been a subject of debate, with critics arguing they limit the government’s ability to fund critical infrastructure and social programs.
President Tinubu has tasked the Economic Management Team, led by Edun, with conducting a thorough analysis and presenting actionable recommendations to the FEC on how to reform these practices.
“This is a pivotal moment for Nigeria’s economy,” Edun said. “By addressing inefficiencies in revenue retention and deductions, we can free up billions of naira to invest in job creation, infrastructure, and poverty alleviation. The President’s vision is to ensure every kobo works for Nigerians.”
The directive has sparked optimism among economic analysts, who see it as a proactive step toward fiscal transparency and accountability.
However, it also raises questions about potential resistance from agencies accustomed to significant financial autonomy.
Edun assured the public that the review would be conducted with fairness and precision, balancing the agencies’ operational needs with the nation’s broader economic goals.
As Nigeria grapples with economic challenges, including inflation and foreign exchange pressures, President Tinubu’s initiative shows his administration’s determination to reform systemic inefficiencies and build a more resilient economy.
The Economic Management Team is expected to submit its recommendations to the FEC in the coming weeks, setting the stage for what could be a transformative shift in Nigeria’s fiscal landscape.
Details on the review process and its outcomes will be closely watched by stakeholders, as the nation anticipates measures that could redefine how its wealth is managed for the benefit of all.
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