South-South Governors Back Tinubu’s Oil Revenue Remittance Order

The South-South Governors Forum (SSGF) has thrown its weight behind President Bola Tinubu’s Executive Order directing the direct remittance of all oil and gas revenues to the Federation Account, describing the move as historic and far-reaching.

In a statement issued Wednesday, the Forum’s Chairman and Governor of Bayelsa State, Senator Douye Diri, said the directive marks a significant step toward restoring constitutional integrity in Nigeria’s petroleum sector.

The governors commended the order as comprehensive and unambiguous, expressing optimism that it would end years of opaque deduction practices and ensure federal, state, and local governments receive their rightful allocations from the Federation Account.

They particularly welcomed provisions, eliminating discretionary deductions and scrapping the Nigerian National Petroleum Company Limited’s (NNPCL) 30 per cent Frontier Exploration Fund, which they said often resulted in idle cash balances.

The Forum also praised the directive mandating all operators and contractors under Production Sharing Contracts (PSCs) to remit Royalty Oil, Tax Oil and Profit Oil directly to the Federation Account, noting that the measure would plug revenue leakages and promote fiscal transparency.

According to the SSGF, the decision would advance fiscal justice for sub-national governments, especially oil-producing states, while increasing funds available for infrastructure, healthcare, education, and other critical sectors across the three tiers of government.

The governors further welcomed the President’s move to undertake a comprehensive review of the Petroleum Industry Act (PIA), describing it as evidence of responsive leadership.

They reiterated long-standing concerns about aspects of the PIA, arguing that reducing host communities’ allocation from a proposed 10 per cent to three per cent should be revisited. The Forum also urged the federal government to review provisions excluding states and local government councils from administering funds meant for oil-producing communities, warning that the current structure could trigger future crises.

The SSGF maintained that urgent amendments to the Act are necessary to ensure stability, fairness, and sustainable develoqpment in the region.