The Nigeria Governors’ Forum (NGF) has expressed firm support for reforms requiring the direct remittance of oil and gas revenue entitlements into the Federation Account, describing the measure as a crucial step toward strengthening fiscal transparency, accountability, and constitutional order.
In a statement issued on March 2, 2026, and signed by Yunusa Tanko Abdullahi, Director of Media and Strategic Communications, the Forum said the reform represents a structural shift aimed at improving the integrity of Nigeria’s intergovernmental revenue system.
The governors acknowledged the signing of Executive Order 9 by President Bola Tinubu on February 13, 2026. The Order seeks to align oil and gas revenue flows more closely with constitutional provisions, while also clarifying regulatory responsibilities within the petroleum sector.
According to the NGF, the Executive Order mandates that all government entitlements under production-sharing and related petroleum contracts—including royalty oil, tax oil, profit oil, and profit gas—be paid directly into the Federation Account. The reform also reinforces clearer boundaries among regulatory agencies in the sector.
Chairman of the Forum and Governor of Kwara State, AbdulRahman AbdulRazaq, emphasized that the credibility and predictability of Federation Account inflows are fundamental to Nigeria’s fiscal federalism.
“The Federation Account is the backbone of Nigeria’s intergovernmental fiscal system. Structural clarity in the remittance of nationally owned resources strengthens fiscal stability across all tiers of government. Predictability improves planning. Planning improves delivery,” he stated.
The Forum noted that oil and gas revenues remain a dominant component of Nigeria’s distributable national income. As such, any inefficiencies or inconsistencies in remittance processes directly affect capital expenditure planning, debt management, infrastructure expansion, and public service delivery at the federal, state, and local government levels.
The governors also referenced recent communiqués of the Federation Account Allocation Committee (FAAC), which have highlighted discrepancies between gross revenue collections and the final amounts available for distribution. The NGF stressed that what ultimately determines the operational capacity of subnational governments is the net distributable revenue, not gross figures.
It warned that when remittance systems are opaque or difficult to reconcile, fiscal predictability suffers—disrupting budget cycles, capital projects, and service delivery frameworks nationwide.
With Nigeria’s population now estimated at over 220 million, the Forum underscored the growing responsibilities borne by state governments, particularly in education, primary healthcare, infrastructure, and security. It maintained that predictable and transparent revenue flows are indispensable to meeting these obligations effectively.
Reaffirming its commitment to collaborative governance, the NGF pledged to continue working with the Federal Government and relevant institutions to ensure that fiscal reforms yield measurable development outcomes for Nigerians.
NGF Endorses Direct Remittance of Oil, Gas Revenues to Federation Account
