Governors back Tinubu’s oil revenue reform, urge direct remittance to Federation Account

By Henry Umoru

ABUJA — The 36 state governors, under the aegis of the Nigeria Governors’ Forum (NGF), have thrown their weight behind President Bola Tinubu’s reforms requiring oil and gas revenue entitlements to be remitted directly into the Federation Account.

In a statement on Monday by NGF’s Director of Media & Strategic Communications, Yunusa Tanko Abdullahi, the Forum described the move as crucial for strengthening fiscal transparency, predictability, and constitutional alignment across all tiers of government.

The governors specifically endorsed 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.

The statement noted that government entitlements under production-sharing and related contracts — including royalty oil, tax oil, profit oil, and profit gas — are now required to flow directly into the Federation Account. This measure, the Forum said, enhances clarity in revenue allocation and reinforces the predictability of funds for federal, state, and local governments.

Commenting on the development, NGF Chairman and Kwara State Governor, AbdulRahman AbdulRazaq, said: “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.”

The Forum emphasized that transparent and predictable revenue flows are essential for states to deliver critical services such as education, healthcare, infrastructure, security, and economic opportunities for Nigeria’s rapidly growing population, now exceeding 220 million.

The NGF reaffirmed its commitment to collaborating with the Federal Government and other stakeholders to ensure that fiscal reforms translate into sustainable development outcomes for Nigerians.

The governors’ endorsement signals strong subnational support for the administration’s efforts to modernize Nigeria’s petroleum revenue management and strengthen fiscal federalism.

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