By By Elizabeth Ugbo
The Nigeria Governors’ Forum (NGF) has urged the federal government to ensure that oil and gas revenues are remitted directly into the Federation Account. The call follows President Bola Tinubu’s Executive Order 9, signed on February 13, 2026, which realigns revenue flows with constitutional provisions. NGF says this step is critical for improving fiscal transparency, predictability, and regulatory clarity across Nigeria’s 36 states and local governments, enabling them to plan and deliver essential services to a population exceeding 220 million.
Gap Between Revenue Collections and Distributable Funds
Recent Federation Account Allocation Committee (FAAC) communiqués reveal a consistent gap between gross revenue collections and final distributable sums. Subnational governments depend on distributable funds to determine fiscal capacity.
Complex or layered remittance pathways weaken fiscal predictability, which directly affects planning cycles for federal, state, and local governments.
Population Growth Pressures States
Nigeria’s rapidly growing population has surpassed 220 million, increasing demand for education, healthcare, infrastructure, security, and economic opportunities. Predictable revenue streams are essential for states to meet these responsibilities effectively.
NGF Endorses Executive Order 9
The NGF supports Executive Order 9, which mandates direct remittance of government entitlements under production-sharing contracts, including royalty oil, tax oil, profit oil, and profit gas. The order also clarifies regulatory responsibilities within the petroleum sector.
According to NGF Director of Media and Strategic Communications, Yunusa Tanko Abdullahi, the reforms enhance transparency, predictability, and constitutional alignment of Federation Account inflows at federal, state, and local levels.
Benefits of Direct Revenue Remittance
Direct remittance of oil and gas revenue strengthens Nigeria’s fiscal federalism by:
- Enhancing transparency across all government tiers
- Improving predictability for capital planning and infrastructure delivery
- Supporting debt sustainability
- Aligning revenue flows with constitutional provisions
NGF Chairman and Kwara State Governor, AbdulRahman AbdulRazaq, described the Federation Account as the backbone of Nigeria’s intergovernmental fiscal system.
Mixed Reactions and NGF Position
While Executive Order 9 has drawn mixed reactions, the 36 governors affirmed its importance. They noted that clear, direct inflows of oil and gas revenue reinforce fiscal integrity and enable better public service delivery.
NGF stressed that transparent and predictable revenue inflows directly impact infrastructure development, capital projects, and economic growth across the federation.
