By Josiah Dauda
The Nigeria Governors’ Forum (NGF) has endorsed the direct remittance of oil and gas revenues into the Federation Account, describing the policy as a critical step toward strengthening fiscal transparency, predictability and constitutional compliance across all tiers of government.
In a statement issued by its Director of Media and Strategic Communications, Mallam Yunusa Abdullahi, the forum said the reform would enhance the integrity of Federation Account inflows, which remain central to Nigeria’s fiscal federalism framework.
The position follows the signing of Executive Order 9 by President Bola Tinubu on February 13, directing the realignment of oil and gas revenue flows with constitutional provisions and clarifying regulatory responsibilities in the petroleum sector.
The NGF noted that the Executive Order mandates the direct remittance of government entitlements under production-sharing and related contracts including royalty oil, tax oil, profit oil and profit gas into the Federation Account.
According to the forum, simplifying remittance pathways will reduce discrepancies between gross revenue collections and distributable allocations, thereby improving fiscal planning at federal, state and local government levels.
Chairman of the NGF and Governor of Kwara State, AbdulRahman AbdulRazaq, described the Federation Account as the backbone of Nigeria’s intergovernmental fiscal system.
He said structural clarity in revenue remittance would strengthen fiscal stability, improve capital planning cycles and enhance service delivery nationwide.
The governors stressed that predictable revenue streams are essential as states remain at the frontline of delivering education, healthcare, infrastructure and security to a rapidly growing population.
The forum reaffirmed its commitment to working with the Federal Government and other stakeholders to ensure that the reforms translate into improved development outcomes for Nigerians.
