South-South Governors Back Tinubu On Oil Revenue

The South-South Governors Forum (SSGF) has praised President Bola Tinubu’s Executive Order mandating the direct remittance of all oil and gas revenues to the Federation Account, describing it as a historic and landmark decision.

According to Ireporter Online, the SSGF chairman and Governor of Bayelsa State, Senator Douye Diri, said the region’s governors welcomed the move as a pivotal step toward restoring constitutional integrity in Nigeria’s petroleum sector.

The Forum noted that the Executive Order is comprehensive, clear, and encouraging, raising hopes that federal, state, and local governments would finally receive their rightful entitlements after years of opaque and complex deduction mechanisms. The governors highlighted that the directive would eliminate unclear deductions and remove the Nigerian National Petroleum Company Limited’s 30 per cent Frontier Exploration Fund, which often resulted in idle cash balances.

“Mandating all operators and contractors under Production Sharing Contracts to remit Royalty Oil, Tax Oil, and Profit Oil directly to the Federation Account will significantly curb revenue leakages,” the statement read. “This move is a positive step toward fiscal justice for sub-national governments and could increase funds available for infrastructure, healthcare, education, and other essential sectors across all tiers of government.”

The Forum also welcomed Tinubu’s commitment to review the Petroleum Industry Act (PIA), affirming that the President is attentive to the people’s interests. The governors urged the federal government to revisit provisions that limit states and local councils from managing payments due to oil-producing communities, warning that the current Act poses risks of future disputes.

“The PIA, as it stands, is a ticking time bomb because it cuts off states and local councils from direct dealings with their communities. We urge the Federal Government to review the percentages allocated to oil communities and ensure states and councils are empowered to administer these funds,” the statement added.