The 36 state governors, under the umbrella of the Nigeria Governors’ Forum (NGF), have endorsed President Bola Tinubu’s reform mandating the direct remittance of oil and gas revenue entitlements into the Federation Account.
In a statement issued Monday by the NGF’s Director of Media and Strategic Communications, Yunusa Tanko Abdullahi, the forum described the policy as critical to strengthening fiscal transparency, predictability, and constitutional alignment across the three tiers of government.
The governors specifically backed Executive Order 9, signed by President Tinubu on February 13, 2026, which realigns oil and gas revenue flows with constitutional provisions and clarifies regulatory responsibilities within the petroleum sector.
Under the directive, government entitlements arising from production-sharing and related contracts — including royalty oil, tax oil, profit oil, and profit gas — are to be paid directly into the Federation Account. The NGF noted that the measure enhances clarity in revenue allocation and reinforces funding predictability for federal, state, and local governments.
Commenting on the development, NGF Chairman and Kwara State Governor, AbdulRahman AbdulRazaq, emphasized the importance of structural reforms in revenue remittance.
“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 stated.
The forum stressed that transparent and predictable revenue flows are essential for states to effectively provide education, healthcare, infrastructure, security, and economic opportunities to Nigeria’s population, which now exceeds 220 million.
The NGF reaffirmed its commitment to collaborating with the Federal Government and other stakeholders to ensure that ongoing fiscal reforms translate into sustainable development outcomes nationwide.
The endorsement signals strong subnational backing for efforts to modernize Nigeria’s petroleum revenue management framework and deepen fiscal federalism.
