Yenagoa, Bayelsa – The South-South Governors Forum (SSGF) has thrown its weight behind President Bola Tinubu’s Executive Order mandating the direct remittance of all oil and gas revenues to the Federation Account, describing the move as historic and far-reaching.
Chairman of the Forum and Governor of Bayelsa State, Douye Diri, in a statement issued on Wednesday, said the governors of the oil-rich region welcomed the directive as a significant step toward restoring constitutional integrity and transparency in Nigeria’s petroleum sector.
According to the Forum, the Executive Order is comprehensive and unambiguous, raising fresh hope that federal, state and local governments will begin to receive their full entitlements from the Federation Account after years of what it described as opaque and complex deduction structures.
The governors particularly applauded provisions aimed at eliminating unclear deductions and scrapping the 30 per cent Frontier Exploration Fund previously managed by the Nigerian National Petroleum Company Limited (NNPCL), noting that the fund often resulted in substantial idle cash balances.
They also commended the directive requiring operators and contractors under Production Sharing Contracts to remit Royalty Oil, Tax Oil and Profit Oil directly to the Federation Account, saying the measure would help curb revenue leakages and strengthen fiscal accountability.
The Forum described the decision as a positive development for oil-producing states, adding that increased revenue flows could boost funding for infrastructure, healthcare, education and other critical sectors across the three tiers of government.
In addition, the governors welcomed President Tinubu’s plan to undertake a comprehensive review of the Petroleum Industry Act (PIA), describing it as evidence of responsive leadership. They reiterated longstanding calls by states in the region, particularly Bayelsa, for amendments to the Act, warning that certain provisions could trigger tensions if left unaddressed.
Specifically, the Forum urged the Federal Government to revisit the reduction of host community allocations from the initially proposed 10 per cent to three per cent and to review provisions that exclude state and local governments from administering funds meant for oil-producing communities.
The governors argued that sub-national governments are closer to the affected communities and should play a central role in managing development interventions, warning that failure to address these concerns could undermine stability in the region.
