President Bola Tinubu has ordered a comprehensive review of deductions by Nigeria’s major revenue-generating agencies to boost public savings and free up resources for economic growth.
The directive was disclosed by Wale Edun, minister of Finance and coordinating minister of the Economy, after Wednesday’s Federal Executive Council (FEC) in Abuja.
Edun explained that the President specifically called for a review of the Nigerian National Petroleum Company Limited (NNPC)’s 30% management fee and 30% frontier exploration deduction under the Petroleum Industry Act.
He directed the Economic Management Team, led by Edun, to present actionable recommendations to the FEC on the best path forward.
The review will cover agencies including the Federal Inland Revenue Service (FIRS), Nigeria Customs Service (NCS), Nigerian Maritime Administration and Safety Agency (NIMASA), Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and NNPC Limited.
Speaking on the significance of savings and investment as a catalyst for growth, Tinubu 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 optimise 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.”
Citing the IMF’s Article IV Report published in July 2025, Tinubu noted that while it acknowledged Nigeria’s economic growth, it also stressed the need for investment-led growth. Identifying savings as the foundation of investment, the President aims to raise public savings by reviewing deductions and retention practices.
He reaffirmed his commitment to inclusive development, pointing to the recently launched Renewed Hope Ward Development Programme, which is designed to empower grassroots economic players, engage sub-national governments, and involve the private sector to ensure effective implementation.
He also urged state governors to prioritise productivity-enhancing investments and strengthen collaboration with local governments to tackle poverty.
