The Nigerian government has okayed plans to reduce revenue retention accrued to Nigeria’s revenue-generating agencies.
The decision was reached at the Federal Executive Council Meeting on Wednesday presided over by President Bola Ahmed Tinubu at the Presidential Villa in Abuja.
Outlining the purpose of the review, the Minister of Finance, Wale Edun, said the move is to boost public savings, check profligacy, and unlock resources for economic growth.
The review affected revenue-generating agencies, including the Nigerian National Petroleum Company Limited, NNPCL, Federal Inland Revenue Service (FIRS), Nigeria Customs Service, NCS, Nigerian Upstream Petroleum Regulatory Commission, NUPRC, and Nigerian Maritime Administration and Safety Agency, NIMASA.
According to Edun, the president specifically called for a reassessment of NNPC’s 30 percent management fee and 30 percent frontier exploration deduction under the Petroleum Industry Act, PIA.
The development comes as the federal government recently barred ministries, departments, and agencies from issuing capital contracts without warrant authority to incur expenditure.
Recall that a Nigerian senator, Abdul Ahmed Ningi, raised an alarm over the non-payment of contractors last year.
