The Nigeria Governors’ Forum (NGF) has expressed strong support for reforms mandating the direct remittance of oil and gas revenue entitlements into the Federation Account.
The NGF described the move as vital to strengthening fiscal transparency, predictability, and constitutional alignment across all tiers of government.
The Forum’s position was disclosed in a statement issued in Abuja by its Director of Media and Strategic Communications, Yunusa Tanko Abdullahi.
The NGF, under the leadership of its Chairman, AbdulRahman AbdulRazaq, noted that the reforms would enhance accountability in the management of nationally owned resources and improve revenue stability for the federal, state, and local governments.
While reiterating the importance of transparency and predictability, the Forum highlighted Executive Order 9, signed on 13 February 2026 by President Bola Tinubu, which directs the realignment of oil and gas revenue flows with constitutional provisions.
According to the NGF, the Order requires entitlements under production-sharing and related contracts including royalty oil, tax oil, profit oil, and profit gas—to be paid directly into the Federation Account.
According to the NGF, the reforms also clarify regulatory responsibilities within the petroleum sector.
The statement stressed that such measures are essential for improving transparency and reducing discrepancies in revenue reporting and distribution.
“As a non-partisan body representing the 36 state governors, the Forum emphasizes that predictable Federation Account inflows are fundamental to Nigeria’s fiscal federalism,” the statement said.
It further noted that recent communiqués from the Federation Account Allocation Committee (FAAC) have consistently shown gaps between gross revenue collections and final distributable sums.
According to the NGF, these gaps weaken fiscal capacity at the subnational level and complicate capital planning, debt management, and infrastructure development.
With Nigeria’s population now exceeding 220 million, the Forum observed that states remain at the forefront of delivering education, healthcare, security, and economic opportunities, making stable revenue flows more critical than ever.
Commenting on the reforms, AbdulRazaq, who also serves as Governor of Kwara State, described the Federation Account as the backbone of Nigeria’s intergovernmental fiscal system.
He noted that structural clarity in remittance processes strengthens fiscal stability, improves planning, and enhances service delivery.
The NGF reiterated that reforms aimed at strengthening fiscal coherence and reinforcing constitutional frameworks ultimately benefit the entire Federation.
It emphasised that sustainable economic growth depends on strong institutions, disciplined revenue management, and effective policy implementation.
The Forum also reaffirmed its commitment to continued collaboration with the Federal Government and relevant stakeholders to ensure that ongoing fiscal reforms translate into tangible development outcomes for Nigerians.