The South-South Governors Forum (SSGF) has endorsed President Bola Tinubu’s Executive Order directing the direct remittance of oil and gas revenues into the Federation Account, describing the move as a landmark decision for Nigeria’s petroleum sector.
In a statement issued on Wednesday by its chairman and Bayelsa State Governor, Douye Diri, the forum said the order marks a significant step towards restoring constitutional compliance and improving transparency in revenue management.
The governors said the directive eliminates opaque deductions and removes the 30 per cent Frontier Exploration Fund previously retained by the Nigerian National Petroleum Company Limited, a structure they noted often resulted in substantial idle funds.
They added that mandating operators under Production Sharing Contracts to remit Royalty Oil, Tax Oil and Profit Oil directly to the Federation Account would curb leakages and guarantee that federal, state and local governments receive their rightful allocations.
“This decision is a positive step towards fiscal justice for sub-nationals, particularly the oil-producing states, just as it would potentially increase available funds for critical infrastructure, healthcare, education and other sectors across the three tiers of government,” the forum said.
The SSGF also welcomed the President’s plan to review the Petroleum Industry Act (PIA), describing it as evidence of leadership attentive to public concerns. It reiterated calls for amendments to aspects of the law, including the reduction of host community allocations from a proposed 10 per cent to three per cent and the exclusion of states and local governments from administering funds meant for oil-producing communities.
The governors urged the Federal Government to address these issues to strengthen institutional balance and prevent future tensions in the oil-producing region.
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