The South-South Governors Forum (SSGF) has thrown its weight behind President Bola Ahmed Tinubu’s Executive Order mandating the direct remittance of all oil and gas revenues into the Federation Account, describing it as a historic and landmark intervention in Nigeria’s petroleum sector.
Chairman of the Forum and Governor of Bayelsa State, Douye Diri, in a statement issued on Wednesday, said the governors of the oil-rich region welcomed the directive as a decisive move to restore constitutional order and fiscal transparency in the management of petroleum revenues.
According to the Forum, the Executive Order is comprehensive and unambiguous, raising renewed hope that years of opaque deductions and complex revenue retention mechanisms would give way to a more transparent system that guarantees federal, state and local governments their rightful allocations from the Federation Account.
The governors particularly applauded provisions of the Order aimed at eliminating questionable deductions and stripping the Nigerian National Petroleum Company Limited (NNPCL) of the controversial 30 per cent Frontier Exploration Fund, which they noted often resulted in substantial idle cash balances.
They also welcomed the directive compelling all operators and contractors under Production Sharing Contracts to remit Royalty Oil, Tax Oil and Profit Oil directly into the Federation Account, saying the move would significantly curb revenue leakages and improve distributable funds.
The Forum described the development as a step toward fiscal justice for sub-national governments, especially oil-producing states, adding that increased transparency in remittances would translate into more resources for infrastructure, healthcare, education and other critical sectors across the three tiers of government.
Beyond the remittance directive, the governors expressed support for President Tinubu’s decision to undertake a comprehensive review of the Petroleum Industry Act (PIA), describing it as evidence of responsive leadership.
They reiterated longstanding concerns over aspects of the Act, particularly the reduction of the host community development fund from the 10 per cent proposed by most oil-producing states to three per cent, and the exclusion of states and local governments from administering funds meant for oil-bearing communities.
The Forum urged the Federal Government to urgently revisit these provisions, warning that the current structure could fuel tensions in host communities if not addressed.
