NGF Endorses Direct Remittance Of Oil, Gas Revenues To Federation Account

Abuja: The Nigeria Governors’ Forum (NGF) has expressed its support for the recent federal reforms mandating that all oil and gas revenue entitlements be remitted directly into the Federation Account.

The forum’s Chairman, Gov AbdulRahman AbdulRazaq of Kwara, expressed support in a statement by Yunusa Abdullahi, Director of Media and Strategic Communications for the NGF, in Abuja on Monday.

AbdulRazaq called the move crucial for fiscal transparency and aligning government processes with the constitution.

President Bola Ahmed Tinubu signed Executive Order 9 on Feb. 13, 2026, which AbdulRazaq praised.

The order required oil and gas revenues, including royalty oil, tax oil, profit oil, and profit gas, to comply with constitutional rules for payment into the Federation Account.

According to AbdulRazaq, these reforms are essential to clarify regulatory mandates in the petroleum sector and ensure that the Federation Account remains the “backbone of Nigeria’s intergovernmental fiscal system.”

“The NGF, as a non-partisan body for all 36 governors, stresses that predictable Federation Account inflows are essential to 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,” he said.

AbdulRazaq pointed out that FAAC communiqués show a gap between gross revenue and what is finally distributed.

He said that, for subnational governments, it was the latter that determined fiscal capacity.

He explained that when remittance processes are complex or difficult to track, fiscal predictability weakens. This directly disrupts planning cycles at all levels of government.

“Ni”Nigeria’s population now exceeds 220 million and continues to grow rapidly. States remain responsible for delivering education, primary healthcare, infrastructure, security, and economic opportunity to this expanding population.”

“Predictable revenue flows strengthen the ability of states to meet these obligations responsibly,” he said.

Commenting on the development, AbdulRazaq emphasised the link between revenue clarity and public service delivery.

“Clear remittance of resources ensures fiscal stability at every government level.

“Predictability improves planning. Planning improves delivery.

“The Governors’ Forum supports reforms that enhance transparency and strengthen the collective capacity of governments to meet the needs of our growing population,” AbdulRazaq said.

He emphasised that states are at the frontline of providing essential services such as primary healthcare, education, and security.”

He added that predictable revenue flows were necessary for states to meet these obligations responsibly.

He said effective economic growth depends on strong institutions, disciplined revenue, and alignment between policy and action.

He reaffirmed the governors’ commitment to collaborating with the Federal Government to ensure that fiscal reforms yield tangible development outcomes for all Nigerians.

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