By George Omagbemi Sylvester
The Nigeria Governors’ Forum (NGF) and other state governor blocs have thrown their weight behind President Bola Ahmed Tinubu’s executive directive requiring all oil and gas revenue entitlements to be remitted directly into the Federation Account, a shift aimed at strengthening fiscal transparency and constitutional compliance in the management of Nigeria’s petroleum sector. The endorsement was made in Abuja on 2 March 2026, following the president’s issuance of Executive Order 9 on 13 February 2026.
Under the new policy, proceeds such as royalty oil, tax oil, profit oil and profit gas payable under Production Sharing Contracts must be channeled straight into the Federation Account, aligning revenue flows with constitutional provisions that govern national income distribution. Governors say this will improve predictability, fiscal integrity and ensure all tiers of government receive their rightful allocations without opaque deductions.
The move has also attracted regional support, with the South‑South Governors Forum welcoming the directive as a necessary step to eliminate unclear revenue deductions that previously reduced remittances.
Analysts say the reform not only restores constitutional order over oil revenues but also deepens fiscal federalism by expanding the resource base shared at the Federation Account Allocation Committee (FAAC) meetings, potentially improving state and local government finances.
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