Edo State Governor, Senator Monday Okpebholo, has signed the Edo State Revenue Consolidation Account “Establishment and Operation”, Law, 2026, in a move aimed at ending revenue leakages and centralizing the management of public funds across the state.
Secretary to the State Government, Umar Musa Ikhilor said the law establishes a Revenue Consolidation Account for Edo State and centralizes the custody, management and disbursement of all public funds accruing to Ministries, Departments, Agencies and Parastatals, MDAs.
Okpebholo said the law is designed to strengthen transparency and accountability, prevent unauthorized retention of government funds, improve cash and revenue management, and provide a uniform legal framework for the collection, remittance and disbursement of public revenue.
Under the new law, the Edo State Internal Revenue Service, EIRS, is empowered to coordinate the enforcement of the state’s revenue laws.
The service will also oversee the engagement of revenue agents and consultants, while coordinating the deployment and maintenance of technology-driven revenue collection systems across the state.
The government said the arrangement is intended to ensure that revenue collection is properly monitored and managed through a centralized system.
The Edo State Government has directed all MDAs to comply with eight key requirements within 14 days of the public notice.
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The directives include disclosing all revenue bank accounts to the Ministry of Finance, transferring existing balances into the approved Internally Generated Revenue, IGR, Account and closing the revenue accounts.
MDAs are also required to stop operating separate accounts for the collection, retention or expenditure of government revenue.
They must submit revenue records covering the period from January 1, 2025, to date to the Ministry of Finance, the Auditor-General and the EIRS for a comprehensive audit.
The government further directed MDAs to stop independent revenue enforcement without prior written approval from the Executive Chairman of EIRS.
The operation of mobile courts for revenue offences will also require approval from EIRS in collaboration with the Edo State Judiciary.
In addition, MDAs have been barred from appointing revenue agents or consultants without the involvement of EIRS and prior written approval from the governor. Existing consultants are expected to regularize their engagements with EIRS within 60 days.
The government also directed the repeal of laws and circulars that allow MDAs to collect, retain and spend government revenue at source.
The state government warned that failure to comply with the new directives would attract sanctions. It said any Head of an MDA, Accounting Officer, Director of Finance, Bursar, Treasurer, Principal Officer or other public officer who fails to comply with the law would be liable to immediate suspension pending investigation.
The government further stated that individuals involved in unauthorized collection, diversion or withholding of government revenue could face investigation and appropriate sanctions.
It added that the person involved, the Head of the affected MDA and any officer who authorized the action could be held jointly liable.
The government said the implementation of the Revenue Consolidation Law aligns with the ongoing national tax reforms. It reiterated that the EIRS is solely responsible for driving and supervising revenue collection in Edo State.
The administration also said it would continue to leverage technology to improve revenue management, promote sustainable development and protect residents from exploitation.
The new law effectively ends the practice of MDAs collecting, retaining and spending government revenue at source, a system the government said has contributed to fiscal indiscipline and revenue leakages in the state.
The Conclave
