The Nigeria Governors’ Forum has endorsed the direct remittance of oil and gas revenues into the Federation Account, describing the measure as critical to enhancing fiscal transparency, predictability and constitutional alignment across all tiers of government.
In a statement issued on Monday by its Director of Media and Strategic Communications, Yunusa Tanko Abdullahi, the forum stated that its position was anchored on how the reforms improve transparency, predictability and constitutional alignment of Federation Account inflows at the federal, state and local government levels.
President Bola Tinubu signed Executive Order 9 on February 13, 2026, directing the realignment of oil and gas revenue flows with constitutional provisions and clarifying regulatory responsibilities in the petroleum sector.
The development has generated mixed reactions, with some commending the initiative and others expressing criticism.
Responding, the 36 state governors noted that the Executive Order mandated that government entitlements under production-sharing and related contracts, including royalty oil, tax oil, profit oil and profit gas, be remitted directly into the Federation Account, while reinforcing the clear delineation of regulatory responsibilities within the sector.
The NGF stated, “As a non-partisan body representing the 36 state governors of the federation, the NGF underscores that the integrity and predictability of Federation Account inflows are foundational to Nigeria’s fiscal federalism. Oil and gas revenues remain a central component of the distributable national income.
“The clarity, transparency, and predictability of those inflows directly affect capital planning, debt sustainability, infrastructure delivery, and public service provision at the federal, state, and local government levels.
“Recent Federation Account Allocation Committee (FAAC) communiqués have consistently demonstrated a gap between gross revenue collections and final distributable sums. For subnational governments, it is the latter that determines fiscal capacity.
“When remittance pathways are layered, complex, or difficult to reconcile, fiscal predictability weakens, and that directly affects capital planning cycles across the federation at federal, state, and local government levels.
“Nigeria’s population now exceeds 220 million and continues to grow rapidly. States sit at the frontline of delivering education, primary healthcare, infrastructure, security architecture, and economic opportunity to this expanding population.”
The forum emphasised that consistent and predictable revenue streams would enhance states’ capacity to discharge these responsibilities effectively.
According to the statement, the Chairman of the Nigeria Governors’ Forum and Governor of Kwara State, AbdulRahman AbdulRazaq, described the Federation Account as the backbone of the intergovernmental fiscal system.