South-South Govs Back President Tinubu’s Executive Order On Oil Revenue Remittance
Yenagoa, Bayelsa State – February 26, 2026
The South-South Governors Forum (SSGF) has thrown its weight behind President ’s Executive Order mandating the direct remittance of all oil and gas revenues to the Federation Account, describing the directive as historic and transformative for Nigeria’s fiscal framework.
The SSGF Chairman and Governor of Bayelsa State, , made the position known in a statement issued on Wednesday, saying the region’s governors view the order as a critical step toward restoring constitutional integrity and transparency in the nation’s petroleum sector.
According to the Forum, the Executive Order is comprehensive, unambiguous, and heartwarming, raising renewed hope that after years of opaque and complex deduction structures, the federal, state, and local governments would begin to receive their rightful entitlements from the Federation Account.
“The South-South region particularly welcomes the key provisions of the Executive Order, which would eliminate opaque deductions and effectively strip the (NNPCL) of the nebulous 30 per cent Frontier Exploration Fund. This fund often led to large idle cash balances,” the statement read.
The Forum noted that mandating all operators and contractors under Production Sharing Contracts to remit Royalty Oil, Tax Oil, and Profit Oil directly to the Federation Account would significantly block revenue leakages and enhance accountability.
Describing the move as a positive step toward fiscal justice for sub-national governments, the governors said oil-producing states stand to benefit greatly from the new regime. They added that improved remittances would potentially increase available funds for critical infrastructure, healthcare, education, and other key sectors across the three tiers of government.
The SSGF also expressed satisfaction with President Tinubu’s decision to undertake a comprehensive review of the (PIA), describing it as proof that he is a listening leader who prioritizes the interests of Nigerians.
The Forum emphasized that states in the region—particularly Bayelsa—had persistently advocated for a review of the PIA, warning that certain provisions of the existing law posed significant risks.
“The Federal Government cut off states and local government councils to deal directly with communities. It is our submission that the percentage due oil communities that was reduced from 10 per cent, as proposed by majority of states in the region, to three per cent be revisited and reviewed,” the statement said.
The governors further urged the Federal Government to reconsider provisions that excluded states and local governments from administering funds meant for host communities, arguing that sub-national governments are closer to the people and better positioned to manage such responsibilities.
“The states and councils are closer to the communities and it was wrong to have excluded them from the administration of these communities. The current Act is a recipe for crisis and we urge Mr President to review it,” the statement concluded.
