NGF Backs Tinubu’s Executive Order 9 on Oil Revenue Remittance
By 𝔸bdulrazak Tomiwa
The Nigeria Governors’ Forum (NGF) has officially endorsed President Bola Tinubu’s Executive Order 9, which mandates the direct remittance of oil and gas revenues into the Federation Account.
The forum described the move as a critical step toward enhancing fiscal transparency and ensuring constitutional alignment across all tiers of government.
In a statement released on Monday, the NGF Chairman and Governor of Kwara State, AbdulRahman AbdulRazaq, emphasized that the Federation Account is the “backbone” of Nigeria’s fiscal system. He noted that structural clarity in revenue flows would strengthen stability and improve the collective capacity of governments to meet citizens’ needs.
The Executive Order, signed on February 13, 2026, directs that all government entitlements including royalty oil, tax oil, and profit gas be paid directly into the Federation Account. This ends the previous practice where the Nigerian National Petroleum Company Limited (NNPCL) retained a significant percentage of these revenues.
By removing “opaque” deduction layers, such as the 30% management fee and the Frontier Exploration Fund, the reform aims to plug revenue leakages. The governors believe this will provide more predictable funding for essential services like education, healthcare, and infrastructure for Nigeria’s growing population.
The NGF also highlighted that recent disparities between gross revenue collections and final distributable sums have hindered capital planning. This new directive is expected to resolve those inconsistencies, allowing states and local governments to better manage their budgets and debt sustainability.
While some groups like PENGASSAN have raised concerns about the impact on the petroleum industry, the governors remain committed to the reform. They expressed readiness to work with the Federal Government to ensure these changes translate into tangible development outcomes for all Nigerians.
