President Bola Tinubu has demanded a detailed examination of all deductions and revenue retention operations by Nigeria’s top-grossing revenue collection agencies, 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).
The order, during Wednesday’s meeting of the Federal Executive Council (FEC) in Abuja, is to ensure maximum public savings, spending efficiency, and freeing up more resources for use in economic growth financing. The President specifically ordered a review of NNPC’s 30% management charge and 30% frontier exploration incentive allowance under the Petroleum Industry Act.
Tinubu expressed his gratitude to the FEC for taking bold reforms that have brought down economic imbalances, restored policy credibility, enhanced resiliency, and increased investors’ confidence. He reemphasized his vision of having a $1 trillion economy by 2030, which requires a minimum of 7% annual growth from 2027, and described the target as an economic and moral imperative to alleviate poverty.
Highlighting the IMF Article IV report of July 2025, Tinubu stated that it reasserted Nigeria’s good economic trajectory and the urgency of investment-driven growth. Adding that the Renewed Hope Ward Development Programme, which is bottom-up for all 8,809 political wards, would engage economically vibrant citizens and poverty alleviation in collaboration with subnational authorities and the private sector.
President Buhari emphasized that the public investment remains at only 5% of the GDP due to weak public savings and hence the best use of each naira available is the imperative of the time with global liquidity constraint. He also instructed the Economic Management Team, led by Finance Minister Wale Edun, to review all the deductions from the Federation Account, including cost-of-collection charges and NNPC charges, and submit actionable recommendations to the FEC.
Edun continued to document improved macroeconomic indicators, with exchange rates stabilised, falling inflation, rising revenues, and manageable debt levels. He said that Nigeria’s competitive exchange rate is attracting investments in all sectors, but that boosting public sector savings remains a necessity. He also documented $125 million Islamic Development Bank funding for Abia State infrastructure and a phase-by-phase rescheduling of ₦4 trillion of electricity sector debt.
The action has been welcomed by economists. Economic Associates’ Dr. Ayo Teriba stated that it is overdue to curb the agencies’ discretion in spending before remitting revenues, advocating for stricter fiscal rules. Centre for the Promotion of Private Enterprise’s Dr. Muda Yusuf welcomed the policy but warned against bureaucratic delays that could retard agency activity.
The two experts concurred that the policy fits into continuing tax and fiscal reforms to increase government revenue, cut deficits, and build the national budget.
