Tinubu Orders Review Of Revenue Deduction, Retention By NNPC, FIRS, Others.
Abuja, Nigeria – President Bola Tinubu has directed a comprehensive review of revenue deduction and retention practices by Nigeria’s major revenue-generating agencies, a move aimed at boosting public savings and driving economic growth. The directive, announced by the Minister of Finance, Wale Edun, following the Federal Executive Council (FEC) meeting on Wednesday, 13 August 2025, targets agencies including the Nigerian National Petroleum Company Limited (NNPC), Federal Inland Revenue Service (FIRS), Nigeria Customs Service (NCS), and Nigerian Maritime Administration and Safety Agency (NIMASA).
Speaking to journalists at the Presidential Villa in Abuja, Edun revealed that the President’s order is part of broader efforts to enhance spending efficiency and unlock funds for critical development projects. Tinubu specifically called for a reassessment of NNPC’s 30 per cent management fee and 30 per cent frontier exploration deduction under the Petroleum Industry Act, with the Economic Management Team, chaired by Edun, tasked with presenting actionable recommendations to the FEC. “The President is committed to accountability and efficiency in managing Nigeria’s natural resources,” Edun said, emphasising the goal of optimising every available naira amid global liquidity constraints.
The directive aligns with Tinubu’s ambitious target of building a $1 trillion economy by 2030, which requires an annual growth rate of at least 7 per cent from 2027. Edun noted that public investment currently accounts for only 5 per cent of Nigeria’s GDP due to low savings, underscoring the urgency of the review. “Savings are the foundation of all investment, domestic or foreign,” he stated, adding that the reforms have already improved macroeconomic stability, with a more stable exchange rate, moderating inflation, and rising revenues.
Tinubu’s reforms have garnered support, with the July 2025 International Monetary Fund Article IV report endorsing Nigeria’s economic trajectory and stressing the need for investment-led growth. The President also highlighted the Renewed Hope Ward Development Programme, a grassroots initiative spanning all 8,809 wards across Nigeria’s 774 local government areas. The scheme aims to empower economically active citizens through micro-level poverty reduction strategies, working in collaboration with states, local governments, and the private sector.
In addition to the revenue review, Edun presented two memoranda to the FEC: a $125 million Islamic Development Bank loan to fund 35 kilometres of road infrastructure in Umuahia and 126 kilometres in Aba, Abia State, and a plan to refinance ₦4 trillion in outstanding electricity sector liabilities, with the first phase set to begin within four weeks. These initiatives reflect Tinubu’s broader vision of dismantling economic distortions, restoring policy credibility, and fostering investor confidence in sectors such as infrastructure, oil and gas, health, and manufacturing.
The announcement has sparked positive reactions, with posts on X describing the move as a step toward tighter fiscal discipline and greater resources for the Federation Account. As Nigeria strives for sustainable development, Tinubu’s directive signals a commitment to transparency and efficiency, positioning the economy to attract both local and foreign investment while addressing poverty at the grassroots level.
