How Tinubu’s Orders to FIRS and Customs Could Reshape Revenue Policies
What’s Going On?
- During a Federal Executive Council (FEC) meeting on August 13, 2025, President Bola Tinubu ordered a sweeping review of deduction and revenue retention policies across major revenue-generating agencies, including:
- Federal Inland Revenue Service (FIRS)
- Nigeria Customs Service (NCS)
- Nigerian Upstream Petroleum Regulatory Commission (NUPRC)
- Nigerian Maritime Administration and Safety Agency (NIMASA)
- Nigerian National Petroleum Company Limited (NNPC)
- A key point of focus is NNPC’s existing 30% management fee and 30% frontier exploration deduction under the Petroleum Industry Act (PIA), which Tinubu asked to be reassessed to improve efficiency and public savings.
- The Economic Management Team, led by Finance Minister Wale Edun, is tasked with evaluating the deductions, reforming agency collection practices, and presenting actionable recommendations to the FEC.
- According to Edun, macroeconomic indicators are improving—exchange rates are stabilizing, inflation is moderating, revenue generation is rising, and debt-to-GDP ratios are becoming more sustainable—all of which underscore the urgency and importance of this review.
Why It Matters
- Optimizing Public Spending
Revisiting high-fee structures like those of the NNPC could free up resources for vital sectors such as infrastructure, health, and industrial development. - Strengthening Financial Discipline
Reviewing cost-of-collection practices across agencies may reduce inefficiency and leakages, ensuring that more funds benefit public investment and service delivery. - Enhancing Policy Credibility
Tinubu’s move further reinforces his Renewed Hope Agenda and commitment to transparency, investor confidence, and sustainable economic stewardship.
The Nation NewspaperLeadership News - Alignment with National Growth Objectives
With a target of 7% annual growth from 2027 to reach a $1 trillion economy by 2030, the directive reflects the administration’s focus on maximizing each naira in service of national development.
The Nation NewspaperLeadership News
Summary Table
| Aspect | Details |
|---|---|
| Agencies Targeted | FIRS, Customs, NUPRC, NIMASA, NNPC |
| Key Focus Areas | NNPC’s management fee, exploration deductions, cost-of-collection practices |
| Responsible Team | Economic Management Team (led by Wale Edun) |
| Objective | Increase savings, improve efficiency, fuel growth |
| Broader Goal | Achieve 7% GDP growth (2027), progress toward $1T economy by 2030 |
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