The Nigeria Governors’ Forum (NGF) has thrown its weight behind the federal government’s reform mandating that all oil and gas revenue entitlements be remitted directly into the Federation Account.
The forum hailed the initiative as a crucial step towards enhancing fiscal transparency, predictability, and alignment with constitutional provisions.
In a statement released by Yunusa Abdullahi, Director of Media and Strategic Communications for the NGF, on Monday, the forum’s Chairman, Gov AbdulRahman AbdulRazaq of Kwara State, described Executive Order 9, signed by President Bola Tinubu on February 13, 2026, as a landmark reform for the petroleum sector.
The executive order mandates the realignment of revenue flows from royalty oil, tax oil, profit oil, and profit gas, ensuring strict compliance with constitutional directives.
According to AbdulRazaq, this move will clarify regulatory responsibilities in the oil and gas industry and ensure that the Federation Account remains the backbone of Nigeria’s fiscal federalism.
“As a non-partisan body representing all 36 state governors, the NGF underscores that the integrity and predictability of Federation Account inflows are foundational to Nigeria’s fiscal stability,” he said.
AbdulRazaq explained that clear revenue flows directly impact the fiscal capacity of subnational governments, which in turn affects capital planning, infrastructure delivery, debt sustainability, and public service provision at federal, state, and local levels.
He emphasised that the gap between gross revenue collections and distributable sums, often highlighted in FAAC communiqués, hampers effective planning and resource allocation.
“Nigeria’s population now exceeds 220 million, and states are at the frontline of delivering essential services such as education, healthcare, security, and economic opportunities.
Predictable and transparent revenue flows strengthen the ability of states to meet these obligations responsibly,” he said.
AbdulRazaq further stressed that structural clarity in resource remittance strengthens governance, improves planning, and enhances public service delivery.
He reaffirmed the NGF’s commitment to working with the Federal Government to ensure that these fiscal reforms translate into tangible development outcomes for all Nigerians.
