Time to End Cost of Collection for Federal Agencies – THISDAYLIVE

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Postscript by Waziri Adio

Over time, there has been some subdued debate about the appropriateness of rewarding some federal agencies with a portion of the revenues that they collect on behalf of the Federation. The commission received by these agencies is called the cost of collection. It is deducted at the monthly meeting of the Federation Accounts Allocation Committee (FAAC) before federally-collected revenues are shared to the three tiers of government and other statutory recipients.

The three federal agencies that charge costs of collection on Federation’s revenue are: the Nigeria Customs Service (NCS), which receives 7% of customs levies and duties; the Federal Inland Revenue Service (FIRS), which gets 4% of non-oil taxes; and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which receives 4% of royalties, signature bonus, fines and other oil and gas revenues.

The state governments, and some commentators, have been objecting, on and…



Source: Thisday Newspaper