The Nigerian Governors have declared support for reforms in the oil and gas sector, which require the remittance of revenue directly into the Federation Account.
The governors, in a statement issued by the Director, Media & Strategic Communications of the Nigeria Governors’ Forum (NGF), Yunusa Tanko Abdullahi, described the reforms as critical to strengthening fiscal transparency, predictability, and constitutional alignment across all tiers of government.
President Bola Tinubu had, on February 13, signed Executive Order 9, which allows the realignment of oil and gas revenue flows with constitutional provisions.
The state chief executives in the statement described that oil and gas revenues as 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,” the governors said.
They noted that the Federation Account Allocation Committee (FAAC) had consistently indicated a gap between gross revenue collections and final distributable sums.
“When remittance pathways are layered, complex, or difficult to reconcile, fiscal predictability weakens, and that directly affects capital planning cycles across the federation,” the state chief executives stated.
The governors stated that, as governments at the subnational level that is responsible for delivering education, primary healthcare, infrastructure, security architecture, and economic opportunity to Nigeria’s increasing population, revenue flows strengthen the ability of states to meet these obligations responsibly.
“The Federation Account is the backbone of Nigeria’s intergovernmental fiscal system.
“Structural clarity in the remittance of nationally owned resources strengthens fiscal stability across all tiers of government,” the governors stated.
They pledged supports for reforms that would enhance transparency, reinforce constitutional alignment, and strengthen the collective capacity of governments to meet the needs of our growing population.
The stated chief executives expressed the belief that the Executive Order 9 will strengthen fiscal coherence and reinforce the constitutional framework underpinning resource ownership, which will ultimately benefit the entire country.
“Sustainable economic growth requires strong institutions, disciplined revenue management, and alignment between policy intent and operational execution,” the governors said, and pledged to collaborate with the Federal Government and other stakeholders to ensure that fiscal reforms translate into improved development outcomes for Nigerians.
