Governors of the South-South geopolitical zone have expressed strong support for Executive Order 9, recently signed by President Bola Ahmed Tinubu, which mandates the remittance of oil and gas revenues to the Federation Account.
The directive, which has sparked mixed reactions across political circles, professional bodies, and civil society organisations, requires the Nigerian National Petroleum Company Limited to remit revenues in line with constitutional provisions.
In a statement issued by the Chairman of the South-South Governors’ Forum and Governor of Bayelsa State, Douye Diri, the governors described the order as a significant step toward restoring constitutional compliance and transparency in Nigeria’s petroleum sector.
The forum noted that the executive order would eliminate “opaque deductions” and effectively remove the controversial 30 percent Frontier Exploration Fund previously managed by NNPCL. According to the governors, the fund often resulted in substantial idle cash balances.
They further stated that directing all operators and contractors under Production Sharing Contracts to remit Royalty Oil, Tax Oil, and Profit Oil directly to the Federation Account would substantially curb revenue leakages.
The governors described the move as a boost for fiscal equity, particularly for oil-producing states, adding that increased remittances could enhance funding for infrastructure, healthcare, education, and other priority sectors across federal, state, and local governments.
The forum also commended President Tinubu for initiating a comprehensive review of the Petroleum Industry Act (PIA), describing the move as evidence of responsive leadership.
However, the governors raised concerns about aspects of the PIA, arguing that the current framework sidelines states and local governments by allowing the Federal Government to deal directly with host communities. They reiterated their longstanding position that the allocation to oil-producing communities — reduced from a proposed 10 percent to 3 percent — should be revisited.
They urged the Federal Government to amend provisions excluding states and local councils from administering community funds, maintaining that sub-national governments are better positioned to manage local development efforts.
According to the forum, retaining the current structure could trigger avoidable tensions, and they called on the President to undertake an urgent review to prevent potential instability.
