The South-South Governors Forum (SSGF) has hailed President Bola Tinubu's Executive Order mandating direct remittance of all oil and gas revenues to the Federation Account as a historic and landmark move toward transparency and fiscal justice.
SSGF Chairman and Bayelsa State Governor, Senator Douye Diri, issued the commendation in a statement on Wednesday, describing the order signed in February 2026 as a vital restoration of constitutional integrity in Nigeria's petroleum sector.
The Forum praised the Executive Order as comprehensive, clear, and encouraging, noting it ends years of opaque deductions and complex structures that have deprived federal, state, and local governments of their rightful shares from the Federation Account.
Key highlights welcomed by the South-South governors include:
Elimination of opaque deductions and the removal of the Nigerian National Petroleum Company Limited (NNPCL)'s 30% Frontier Exploration Fund, which often resulted in large idle cash balances.
Direct remittance of Royalty Oil, Tax Oil, and Profit Oil by operators and contractors under Production Sharing Contracts straight to the Federation Account, effectively plugging major revenue leakages.
The statement emphasized that these changes represent a significant step toward fiscal equity, especially for oil-producing states in the region.
It is expected to boost funds available for vital sectors such as infrastructure, healthcare, education, and other developmental needs across all tiers of government.
The governors also expressed appreciation for President Tinubu's commitment to a comprehensive review of the Petroleum Industry Act (PIA).
They described this as proof of responsive leadership that prioritizes national interest.The Forum reiterated long-standing calls from states like Bayelsa for PIA amendments, warning that the current law is a "ticking time bomb."
Specific concerns include:
The reduction of host community benefits from a proposed 10% to 3%.
The exclusion of states and local governments from administering funds due to communities, despite their closer proximity and better understanding of local needs.
The SSGF urged an immediate revisit of these provisions to prevent potential crises and ensure fair, effective management of community entitlements.
Overall, the South-South governors view the Executive Order and promised PIA review as positive strides toward greater accountability, increased revenue flows, and sustainable development for Nigeria's oil-rich region and the nation at large.
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