The Nigeria Governors’ Forum (NGF) has endorsed President Bola Tinubu’s Executive Order 9, which requires the direct remittance of all oil and gas revenues, including royalty oil, tax oil, profit oil, and profit gas into the Federation Account.
Kwara State Governor Abdulrahman Abdulrazaq, chairman of the NGF, issued a statement on Monday supporting the order, signed by President Tinubu on February 18, 2026 (February 13 in some reports).
The measure aims to realign revenue flows from production-sharing contracts and related arrangements with constitutional requirements, while clarifying regulatory roles in the petroleum sector.
The NGF described the reform as essential for boosting fiscal transparency, predictability, and adherence to constitutional provisions on revenue management.
Governor Abdulrazaq emphasized that the Federation Account forms the foundation of Nigeria’s intergovernmental fiscal system, with oil and gas revenues serving as a central component of the distributable national income shared among federal, state, and local governments.
“Oil and gas revenues remain a central component of the distributable national income,” the statement read. “The clarity, transparency, and predictability of those inflows directly affect capital planning, debt sustainability, infrastructure delivery, and public service provision at the federal, state, and local government levels.”
The governors highlighted discrepancies noted in recent Federation Account Allocation Committee (FAAC) communiqués between gross revenues generated and amounts distributed, which they said undermine fiscal planning. With Nigeria’s population exceeding 220 million, states shoulder major responsibilities for education, healthcare, infrastructure, security, and economic opportunities—making reliable revenue flows critical.
As a non-partisan platform representing all 36 state governors, the NGF stressed that predictable federation account inflows are vital to fiscal federalism. When remittance processes become complex or inconsistent, fiscal predictability suffers, impacting development across the country.
The forum pledged continued collaboration with the federal government to ensure effective implementation of the reforms, aimed at promoting sustainable growth through stronger fiscal discipline and institutional integrity.
Implementation has begun, supported by a transition framework established by a federal committee chaired by the Minister of Finance. The NGF’s position aligns with broader reporting on the order, with no major reported opposition from the governors.
Advertise on NigerianEye.com to reach thousands of our daily users
No comments
Post a Comment
Kindly drop a comment below.
(Comments are moderated. Clean comments will be approved immediately)
Advert Enquires - Reach out to us at NigerianEye@gmail.com