From Juliana Taiwo-Obalonye, Abuja
President Bola Tinubu has mandated a thorough review of all deductions and revenue retention procedures carried out by key revenue-generating agencies.
This was disclosed at the end of the Federal Executive Council (FEC) meeting presided over by President Bola Tinubu.
Briefing state house correspondents, the Coordinating Minister of the Economy and Minister of Finance, Wale Edun stated that the agencies include 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).
He explained that the directive was aimed at optimising public savings, enhancing spending efficiency and freeing up more resources to finance growth.
According to Edun, Tinubu specifically called for a reassessment of NNPC’s 30 percent management fee and 30 percent frontier exploration deduction provided under the Petroleum Industry Act.
He quoted the president as appreciating their commitment and hard work in implementing bold and difficult reforms that have dismantled long standing economic distortions, restored policy credibility, enhanced resilience and bolstered investor confidence.
He said these reforms had created a transparent, competitive business environment that now positions Nigeria to attract more domestic and foreign investment in critical sectors, such as infrastructure, oil and gas, health and manufactured exports.
The minister said President Tinubu reaffirmed his administration’s Renewed Hope Agenda, saying that the target remains to build a $1 trillion economy by 2030. To achieve this, the economy must grow by at least seven percent annually from 2027. He described the growth target as not just an economic target but a moral imperative, noting that higher growth was the only sustainable path to tackling poverty.
The President also cited the July 2025 IMF Article IV report, which he said affirms Nigeria’s economic trajectory and underlines the importance of investment-led growth.
The President highlighted the launch of the Renewed Hope Ward Development Programme, a ward-based initiative covering all 8,809 wards across Nigeria’s 774 local government areas.
The programme is designed to empower economically active individuals at the grassroots through a micro-level poverty reduction approach.
Tinubu stated that the initiative would engage subnational governments and private sector partners to ensure its implementation is both efficient and impactful. He noted that at the recent National Economic Council meeting, he urged governors to focus on productivity-boosting investments, enhance food security and strengthen collaboration with local governments to drive growth and ensure that no Nigerian is left behind.
He highlighted that public investment currently makes up only five percent of the GDP, a consequence of low public savings.
Tinubu emphasised that maximising every available Naira was crucial to maintaining momentum and financing growth, especially amid global liquidity challenges.
To address this, he instructed the Economic Management Team, led by Edun to review all deductions from the Federation Account, including collection costs by FIRS, Customs, NUPRC and NIMASA, as well as charges by the NNPCL.
The team is expected to submit actionable recommendations to the Federal Executive Council (FEC) for the best way forward.
Edun told newsmen that macroeconomic stability indicators were improving, with the exchange rates stabilising, inflation decreasing, revenues increasing and debt-to-GDP ratios aligning within target ranges.
He added that Nigeria is now regarded as an attractive investment destination across various sectors, supported by a competitive exchange rate.
He emphasised that savings form the foundation for investment, whether from domestic sources or foreign inflows, and highlighted the President’s directive to urgently increase public sector savings.
This effort will involve reviewing deductions and revenue retention policies to free up more funds for investment.
He noted that the President praised FEC members for their resilience and support in advancing the reform agenda.
He also revealed that he presented two memos: one seeking $125 million in Islamic Development Bank financing for infrastructure projects in Abia State, including roughly 35 kilometres of roads in Umuahia and 126 kilometres in Aba; and another concerning the refinancing of ₦4 trillion in outstanding electricity sector debts.
He stated: “In addition to our other priorities, I presented a memo on infrastructure support from the Islamic Development Bank totalling $125 million for Abia State. This financing will enhance critical road networks connecting Umuahia and Aba, boosting transport efficiency and economic activities in the region.”
On the energy front, the minister also addressed the urgent need to refinance the electricity sector’s substantial outstanding obligations, amounting to N4 trillion. According to Edun, a phased refinancing plan had been designed to resolve this debt, with implementation already underway.
He explained: “I presented a memo on the all-important refinancing of the electricity sector’s outstanding obligations totalling N4 trillion. Though the financing plan was not fully approved immediately, we have moved into implementation, led by the Debt Management Office (DMO) and other experts. This process is expected to take about three to four weeks to complete the first phase, which will mark significant progress in resolving this debt.”
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