Tinubu Orders FIRS, Customs, NNPC to Review Revenue Deductions to Boost Public Savings
President Bola Tinubu has directed a comprehensive review of deductions and revenue retention practices by Nigeria’s key revenue-generating agencies to boost public savings, enhance spending efficiency, and channel more funds into economic growth. The agencies affected 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). The directive was issued during Wednesday’s Federal Executive Council (FEC) meeting in Abuja and announced by Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
Tinubu specifically ordered a reassessment of NNPC’s 30% management fee and 30% frontier exploration deduction under the Petroleum Industry Act, tasks which will be handled by the Economic Management Team. The President said the move aligns with his administration’s ongoing reforms aimed at dismantling economic distortions, restoring policy credibility, attracting investment, and driving sustainable growth across key sectors such as oil and gas, manufacturing, infrastructure, and health.
Reaffirming the Renewed Hope Agenda, Tinubu reiterated Nigeria’s target of achieving a $1 trillion economy by 2030, requiring an annual GDP growth rate of at least 7% from 2027. He described the goal as both an economic necessity and a moral obligation to reduce poverty and improve living standards. Citing the July 2025 International Monetary Fund Article IV report, Tinubu said Nigeria’s economic trajectory has gained global endorsement and now requires accelerated investment-led growth.
The President also highlighted the Renewed Hope Ward Development Programme, a grassroots initiative covering all 8,809 wards across Nigeria to empower economically active citizens through micro-level poverty reduction strategies in collaboration with states, local governments, and private partners. He stressed the urgent need to optimise “every available naira,” given that public investment currently stands at only 5% of GDP due to low savings.
Edun added that macroeconomic indicators are showing improvement, with a more stable exchange rate, easing inflation, rising revenues, and debt-to-GDP ratios within sustainable levels. He also presented two memos to the FEC: a $125 million Islamic Development Bank loan for road infrastructure in Abia State and a plan to refinance N4 trillion in electricity sector debt, with the first phase of the debt resolution expected within weeks.
Source: Punch