Tinubu Orders Review of Deductions, Revenue Retention by Key Federal Agencies

Move aims to boost public savings, investment, and growth as Nigeria targets $1 trillion economy by 2030

President Bola Tinubu has directed a comprehensive review of deductions and revenue retention practices by major federal revenue-generating agencies in a bid to enhance public savings, improve spending efficiency, and unlock funds for critical investments.

The order, announced by Minister of Finance and Coordinating Minister of the Economy Wale Edun after Wednesday’s Federal Executive Council (FEC) meeting at the Presidential Villa, targets agencies such as the Federal Inland Revenue Service (FIRS), Nigeria Customs Service (NCS), Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Nigerian Maritime Administration and Safety Agency (NIMASA), and the Nigerian National Petroleum Company (NNPC) Limited.

Focus on NNPC’s 30% Deductions

President Tinubu specifically called for a reassessment of the NNPC’s 30% management fee and 30% frontier exploration deduction under the Petroleum Industry Act. The review will be spearheaded by the Economic Management Team, chaired by Edun, which will present actionable recommendations to FEC.

“Currently, public investment as a share of GDP stands at a low 5%, largely due to insufficient public savings,” Edun quoted the President as saying. “We must urgently review and optimize our savings. This includes enhancing spending efficiency and reassessing deductions from the Federation Account.”

Driving Reform and Investor Confidence

Tinubu noted that the directive aligns with ongoing reforms aimed at dismantling economic distortions, restoring policy credibility, and boosting investor confidence.

“These reforms have enhanced our economic resilience, restored macroeconomic stability, created a transparent and competitive business environment, and positioned our economy to attract domestic and foreign private investment,” he said.

Poverty Reduction and Growth Targets

Speaking on the Renewed Hope Ward Development Programme, the President stressed that higher growth is essential to tackling poverty. His administration has set a minimum growth target of 7% by 2027 to achieve a $1 trillion economy by 2030.

“This is not just an economic target; it is a moral imperative. Stimulating higher growth is the only sustainable path to solving Nigeria’s poverty challenge,” Tinubu declared.

He also referenced the recent IMF Article IV Report published in July 2025, which supports Nigeria’s trajectory and underscores the importance of investment-led growth.