Governors Back Direct Remittance Of Oil Revenues To Federation Account

The Nigeria Governors’ Forum (NGF) has thrown its weight behind ongoing reforms requiring oil and gas revenue entitlements to be remitted directly into the Federation Account, describing the move as critical to strengthening fiscal transparency, predictability, and constitutional alignment across all tiers of government.

The Forum, chaired by AbdulRahman AbdulRazaq, expressed its position on Monday in a statement issued by its Director of Media and Strategic Communications, Yunusa Tanko Abdullahi.

The governors specifically referenced Executive Order 9, signed by Bola Ahmed Tinubu on February 13, 2026, which directs the realignment of oil and gas revenue flows with constitutional provisions and clarifies regulatory responsibilities within the petroleum sector.

According to the NGF, the Executive Order requires government entitlements under production-sharing and related contracts — including royalty oil, tax oil, profit oil and profit gas — to flow directly into the Federation Account, while also strengthening the delineation of regulatory mandates across the sector.

The Forum said its primary concern is the extent to which the reforms enhance transparency, predictability and constitutional alignment of Federation Account inflows, stressing that the integrity of those inflows is foundational to Nigeria’s fiscal federalism.

“As a non-partisan body representing the 36 state governors of the Federation, the NGF underscores that the integrity and predictability of Federation Account inflows are central to the stability of Nigeria’s intergovernmental fiscal system,” the statement said.

Oil and gas revenues remain a major component of distributable national income shared monthly through the Federation Account Allocation Committee (FAAC). However, the Forum noted that recent FAAC communiqués have consistently reflected gaps between gross revenue collections and the final distributable sums.

For subnational governments, it said, the final distributable amount determines fiscal capacity.

The governors argued that when remittance pathways are layered, complex or difficult to reconcile, fiscal predictability weakens — directly affecting capital planning cycles at federal, state and local government levels.

Commenting on the development, AbdulRazaq said structural clarity in the remittance of nationally owned resources would strengthen fiscal stability across all tiers of government.

“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 said.

He added that the Governors’ Forum supports reforms that enhance transparency, reinforce constitutional alignment and strengthen the collective capacity of governments to meet the needs of Nigeria’s growing population.

With Nigeria’s population estimated at over 220 million and expanding rapidly, the NGF said states remain at the frontline of delivering education, primary healthcare, infrastructure and security.

It maintained that predictable revenue flows are essential for responsible capital planning, debt sustainability, infrastructure delivery and improved public service provision.

The Forum reiterated its commitment to collaborative engagement with the Federal Government and other stakeholders to ensure that fiscal reforms translate into improved development outcomes for Nigerians.