President Bola Tinubu has directed a review of deductions and revenue retention practices by key federal revenue-generating agencies.

According to the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, the move aims to improve public savings, enhance spending efficiency, attract investment, and free up resources for national growth.

Edun disclosed this while briefing State House correspondents at the Presidential Villa, noting that the President issued the directive during Wednesday’s Federal Executive Council meeting.

Some of the agencies targeted in the review include the Federal Inland Revenue Service, Nigeria Customs Service, Nigerian Upstream Petroleum Regulatory Commission, Nigerian Maritime Administration and Safety Agency, and the Nigerian National Petroleum Company Limited.

Minister Wale Edun revealed that President Tinubu specifically ordered a reassessment of NNPC’s 30 per cent management fee and 30 per cent frontier exploration deduction under the Petroleum Industry Act.

He added that the President tasked the Economic Management Team, which he chairs, to submit actionable recommendations to the FEC on the most efficient path forward.

According to Edun, the President explained that the directive is aimed at sustaining ongoing reforms that have removed economic distortions, restored policy credibility, strengthened resilience, and boosted investor confidence.

He added that President Tinubu stressed the vital role of public savings in driving investment and accelerating economic growth.

He said, “Currently, public investment as a share of GDP stands at a low 5.0 per cent, largely due to insufficient public savings.

“We must urgently review and optimize our savings. This includes enhancing spending efficiency and reviewing deductions from the Federation Account, such as the cost of collection by revenue agencies, such as FIRS, Customs, NUPRC, and NIMASA etc.

“There is also the need to reassess the 30 per cent management fee and the 30 per cent frontier exploration deduction by NNPC based on the Petroleum Industry Act. We must optimise every available Naira to sustain our momentum and finance our growth trajectory, especially in a time of global liquidity constraints.

“Accordingly, I am directing the Economic Management Team, chaired by the Minister of Finance and Coordinating Minister of the Economy, to conduct a comprehensive review of all deductions and revenue retention practices, and present actionable recommendations to this Council for an optimal way forward.”

During his address on the Renewed Hope Ward Development Programme aimed at tackling poverty, President Tinubu said his administration has undertaken bold and difficult reforms that have removed longstanding distortions in Nigeria’s economy and restored policy credibility.

He noted that these reforms have strengthened economic resilience, restored macroeconomic stability, fostered a transparent and competitive business environment, and boosted investor confidence.