Reported by: Ijeoma G | Edited by: Gabriel Osa
Uyo, Nigeria — Governor Pastor Umo Eno of Akwa Ibom State has announced a sweeping reform in the way his administration manages the state’s revenue collection system, terminating all existing contracts with private revenue contractors and consultants in a move aimed at enhancing accountability, transparency and central oversight. The directive, unveiled at a New Year’s thanksgiving service, represents one of the most significant fiscal policy shifts since Governor Eno assumed office, and is expected to reshape how revenue flows are managed in the oil-rich state.
Speaking to congregants and government officials, Governor Eno said that “all contractors and all consultants to the state government on any revenue, whether it’s transportation or motor parks, are all terminated” with immediate effect. He stressed that the decision reflects his administration’s commitment to eliminating leakages, strengthening state control of public funds, and promoting transparency in all financial operations.
The termination encompasses all third-party entities previously engaged by the state to manage revenue streams, including agencies and private firms tasked with collecting fees or administering revenue-generating assets. Governor Eno also announced the establishment of an inter-ministerial committee — comprising key officials such as the Commissioner for Finance, the Commissioner for Budget and representatives from revenue-generating ministries, departments and agencies — to create a unified revenue collection framework and ensure that all inflows are directed into a centralised state treasury for proper accounting and disclosure.
Officials from the Akwa Ibom State government described the reform as part of a broader effort to strengthen public sector governance and fiscal discipline under the administration’s ARISE Agenda, which prioritises economic reform, improved infrastructure, and service delivery to citizens. The committee is expected to propose new mechanisms for revenue mobilisation that do not rely on external contractors but instead harness internal controls and standardised procedures.
The governor’s decision has been widely interpreted by analysts as a direct response to longstanding concerns about the inefficiencies and opacity of outsourced revenue collection in many Nigerian states, where private contractors have in some cases controlled significant streams of public funds with limited oversight. By removing intermediary actors from the revenue process, the state aims to capture lost income and increase the efficiency of fiscal operations.
However, the announcement has also sparked debate over the short- and long-term implications of the policy. Supporters argue that consolidating revenue collection under direct government control will safeguard against corruption and ensure that funds are available for priority public services such as healthcare, education, and infrastructure. They see the reform as aligning with broader national calls for improved fiscal transparency and accountability at all levels of government.
Critics, while supportive in principle, have emphasised the need for robust implementation frameworks to avoid creating bottlenecks or inefficiencies within government agencies already tasked with revenue collection. Some observers also caution that the abrupt termination of existing contracts could disrupt revenue flows if the newly established systems are not fully operational in time to replace them. Ensuring that the transition to centralised revenue management does not lead to shortfalls in government funding or service delivery remains a priority for stakeholders tracking the reform’s progress.
The policy shift comes at a time when Nigerian states face mounting pressure to improve internally generated revenue as federal allocations fluctuate and economic challenges persist. In recent years, many state governments have adopted diverse revenue strategies — including public–private partnerships, outsourced revenue collection, and tax reforms — to supplement budgetary needs. Akwa Ibom’s move to end reliance on external revenue contractors and consultants positions it among a growing number of states reevaluating these models in favour of more direct fiscal control.
In his address, Governor Eno underlined that the government’s primary goal is to safeguard public trust and maximise the state’s revenue potential for the benefit of Akwa Ibom residents. He emphasised that transparency and accountability would be central pillars of the new revenue architecture, which will include regular public reporting of collections and allocations.
The governor’s remarks also hinted at a broader administrative realignment, following recent actions such as the dissolution of statutory and non-statutory boards and commissions in the state last year, which were seen as part of efforts to streamline governance structures and align them more closely with policy priorities.
As the inter-ministerial committee begins its work, the public and private sectors alike will be watching closely to see how the transition unfolds and whether the reforms yield the promised improvements in revenue performance and fiscal integrity. The changes represent not just a shift in policy but an experiment in public financial management that could influence similar strategies in other Nigerian states grappling with revenue retention and service delivery.
For now, Governor Eno’s termination order signals a bold recalibration of fiscal policy in Akwa Ibom — one that seeks to redefine the rules of revenue mobilisation and set a new standard for how states manage their financial resources in pursuit of transparent and accountable governance.
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