By Gabriel Ameh
The Nigeria Governors’ Forum (NGF) has expressed support for reforms requiring oil and gas revenue entitlements to be paid directly into the Federation Account, saying the policy will strengthen transparency, fiscal predictability, and constitutional governance.
The position was contained in a statement released on March 2, 2026, and signed by Yunusa Tanko Abdullahi, Director of Media and Strategic Communications of the Forum.
The NGF said it has reviewed the provisions of Executive Order 9 signed by President Bola Tinubu on February 13, 2026, which seeks to align oil and gas revenue flows with constitutional requirements while clarifying regulatory roles within Nigeria’s petroleum sector.
The order mandates that government earnings under production-sharing and related agreements including royalty oil, tax oil, profit oil, and profit gas be channelled directly into the Federation Account.
According to the Forum, the integrity of the Federation Account is fundamental to Nigeria’s fiscal federalism since oil and gas earnings constitute a major component of national distributable income.
Chairman of the NGF and Governor of Kwara State, AbdulRahman AbdulRazaq, stated that improved clarity in revenue remittance channels would enhance economic planning across federal, state, and local governments.
“The Federation Account is the foundation of Nigeria’s intergovernmental fiscal architecture. When revenue flows are predictable and transparent, it strengthens policy planning, debt management, and infrastructure delivery,” AbdulRazaq said.
The Forum also referenced allocations data from the Federation Account Allocation Committee (FAAC), noting that gaps between gross collections and distributable revenue have sometimes complicated subnational fiscal planning.
The NGF further noted that Nigeria’s population, estimated at over 220 million people, places increasing pressure on state governments, which are primarily responsible for delivering education, primary healthcare, security support, and infrastructure services.
It reiterated its commitment to working with the Federal Government and other stakeholders to ensure that fiscal reforms strengthen institutional efficiency and improve development outcomes nationwide.
