Nigeria’s current system for funding its major revenue-generating agencies is raising significant concerns over efficiency and fiscal responsibility. The Nigerian Revenue Service, the Nigerian Customs Service, and the Nigerian Upstream Petroleum Regulatory Commission are permitted to retain between 4% and 7% of the revenues they collect to fund their operations. This model, which ties operating budgets directly to collection volume, is significantly higher than the global average of roughly 1%, and has resulted in the agencies retaining vast sums—reaching N78.3 billion in January 2024 alone. Experts are urging the National Assembly to review these statutory ratios, suggesting that cutting them by half would release substantial funds for national development while still ensuring agencies remain well-funded. The proposed reform advocates for moving toward a needs-based, rather than volume-based, budgeting approach to improve accountability and reduce administrative costs.