The Nigeria Governors’ Forum (NGF) on Monday declared firm backing for President Bola Tinubu’s policy mandating that oil and gas revenue entitlements be paid straight into the Federation Account.
The Forum’s stance was conveyed in a statement released by the NGF Director of Media and Strategic Communications, Yunusa Tanko Abdullahi.
Describing the initiative as pivotal to deepening fiscal openness, certainty, and adherence to constitutional provisions at all levels of government, the Forum affirmed its support for the “Executive Order 9, signed by President Bola Ahmed Tinubu on 13th February, 2026, which directs the realignment of oil and gas revenue flows with constitutional provisions and clarifies regulatory responsibilities within the petroleum sector.
“The Forum’s interest lies in the extent to which reforms enhance the transparency, predictability, and constitutional alignment of Federation Account inflows across all tiers of government.
“In this regard, the Forum recognises that the Executive Order requires government entitlements under production-sharing and related contracts, including royalty oil, tax oil, profit oil, and profit gas, to flow directly into the Federation Account, while strengthening the delineation of regulatory mandates across the sector.
“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. Predictable revenue flows strengthen the ability of states to meet these obligations responsibly,” Abdullahi noted in the statement.
Reacting to the development, the Chairman of the Nigeria Governors’ Forum and Governor AbdulRahman AbdulRazaq of Kwara State remarked that: “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 Governors’ Forum supports reforms that enhance transparency, reinforce constitutional alignment, and strengthen the collective capacity of governments to meet the needs of our growing population.”
The Forum consequently restated that measures aimed at improving fiscal coordination and reinforcing the constitutional structure guiding resource ownership ultimately serve the broader interests of the Federation.
It further emphasised that enduring economic expansion depends on resilient institutions, prudent revenue administration, and consistency between policy objectives and their execution.
The Nigeria Governors’ Forum also reaffirmed its readiness to work closely with the Federal Government and relevant stakeholders to ensure fiscal reforms deliver tangible development benefits to citizens.
