President Bola Tinubu has directed a comprehensive review of all deductions and revenue retention practices by major revenue-generating 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 (NNPCL).
The order, issued during Wednesday’s Federal Executive Council (FEC) meeting, aims to boost public savings, improve spending efficiency, and free up funds to drive economic growth. Specifically, Tinubu called for reassessment of NNPCL’s 30% management fee and 30% frontier exploration deductions under the Petroleum Industry Act.
Reaffirming his Renewed Hope Agenda, the President said his administration is committed to building a $1 trillion economy by 2030, requiring annual GDP growth of at least 7% from 2027. He described this target as both an economic necessity and a moral imperative for poverty reduction.
Tinubu also highlighted new grassroots initiatives such as the Renewed Hope Ward Development Programme, which will empower individuals across all 8,809 political wards in Nigeria, working with state governments and private sector partners. He urged governors to prioritise productivity-enhancing investments, strengthen food security, and deepen collaboration with local councils.
The President stressed that low public savings — currently only 5% of GDP — hinder growth, making it critical to optimise every naira. He tasked the Economic Management Team, led by Finance Minister Wale Edun, to review all revenue deductions and present actionable recommendations.
Edun told reporters that macroeconomic stability indicators are improving, with exchange rates stabilising, inflation easing, and revenues rising. He also announced two FEC approvals: $125 million from the Islamic Development Bank for road projects in Abia State, and a phased refinancing plan for ₦4 trillion in electricity sector debt.
Economists welcomed the move. Dr. Ayo Teriba of Economic Associates said limiting agencies’ discretion over retained revenues would ensure the federal government has more resources for national priorities, while Dr. Muda Yusuf of the Centre for the Promotion of Private Enterprise urged that implementation should avoid bureaucratic delays that could hinder agency operations.
