TAXPAYERS · GOVERNMENT AGENCIES
Ministries, departments and agencies
MDAs are both revenue generators and taxpayers. They raise fees and licences that the Service collects on their behalf, and they deduct PAYE and withholding tax from the people they pay — which makes them, collectively, the single largest source of remittance in the State.
Two roles, one platform
Every ministry, department and agency of the State stands in two relationships to the Service. In the first, it is a revenue-generating MDA: it regulates an activity, renders a service or owns property, and the charges arising are collected by the Service on its behalf and credited to it in the revenue ledger. In the second, it is a taxpayer and a collection agent: it employs staff from whose salaries PAYE must be deducted, and it pays contractors from whom withholding tax must be deducted.
The reform that consolidated collections removed cash and bank accounts from the first role. An MDA no longer issues its own receipts, no longer holds a collection account and no longer remits to the treasury at the end of a month. It approves a charge; the Service raises the bill, collects it into the treasury single account and credits the MDA in the ledger. The MDA sees, in real time, everything collected in its name.
The second role has not changed but has become far more visible. Government is the largest employer in the State, and PAYE from the public service is the single largest line in the monthly revenue return. Accounting officers are personally accountable for deduction and remittance, and a ministry that deducts and fails to remit is treated no differently from a private employer.
Revenue-generating MDAs
| MDA | Principal revenue heads | 2025 collections | Share of IGR |
|---|---|---|---|
| State Internal Revenue Service | PAYE, direct assessment, withholding tax, consumption tax, stamp duty, development levy | ₦31.4 billion | 53.8% |
| Motor Licensing Authority | Vehicle licensing, plates, roadworthiness, driver licensing | ₦11.2 billion | 19.2% |
| Ministry of Lands & Survey | Certificate of Occupancy fees, ground rent, title searches, survey approvals | ₦4.6 billion | 7.9% |
| Urban Planning & Development Authority | Building plan approval, land use charge, mast levy, street naming | ₦3.8 billion | 6.5% |
| Signage & Advertisement Agency | Billboard, fascia and mobile advertisement levies | ₦2.1 billion | 3.6% |
| Ministry of Health | Facility licensing and inspection, laboratory services, vendor licences | ₦1.6 billion | 2.7% |
| Environmental Protection Agency | Sanitation levy, effluent levy, EIA review, environmental fines | ₦1.2 billion | 2.1% |
| State Water Board | Water sales, connections, abstraction permits | ₦0.9 billion | 1.5% |
| Ministry of Education | Private school approval, inspection and accreditation | ₦0.7 billion | 1.2% |
| State Fire Service | Fire safety certificates, extinguisher servicing, inspections | ₦0.5 billion | 0.9% |
| Other MDAs | Court fees, procurement, agriculture, commerce, sports | ₦0.4 billion | 0.6% |
What an accounting officer must do
- Ensure PAYE is deducted from every officer on the nominal roll, at the correct rate, every month.
- File the monthly PAYE schedule by the 10th, listing every officer with their TIN.
- File the annual employer return on Form H1 by 31 January.
- Deduct withholding tax from every contractor payment and remit within 30 days.
- Obtain a tax clearance certificate from every contractor before award and before final payment.
- Ensure no charge is collected in the MDA’s name outside the approved schedule of revenue heads.
- Ensure no officer of the MDA receives cash for any State charge.
- Reconcile the MDA revenue ledger monthly and query any variance within five working days.
- Submit proposed new rates or heads to the Board’s Technical & Rates Committee before implementation.
How an MDA charge reaches the treasury
The MDA approves the transaction
A licence is granted, a plan approved, an inspection passed. The MDA officer records the approval on the platform against the applicant’s TIN.
The Service raises the bill
A demand notice is generated against the MDA’s revenue head, carrying a payment reference. The MDA never issues a receipt of its own.
The applicant pays
Through any accredited bank, POS, transfer, USSD, Remita or card. Funds settle into the treasury single account, not into an MDA account.
The ledger credits the MDA
The collection is posted against the MDA in the revenue ledger in real time, and appears on the MDA dashboard and in the monthly return.
The MDA releases the document
Only on confirmed payment. The certificate, approval or licence carries a verification code linked to the receipt.
MDA revenue dashboards
Every revenue-generating MDA has a dashboard showing collections against its heads by day, month and year, measured against the target set in the annual Appropriation Law.
Accounting officers and revenue desk officers are given named accounts. Access is granted by the Director of Corporate Services & ICT on the written request of the accounting officer.
MDA revenue performance
Collections by MDA, by month and against target — published for every agency.