The Nigeria Governors’ Forum (NGF), representing all 36 state governments, has endorsed recent federal reforms that require all oil and gas revenue entitlements to be remitted directly into the Federation Account. The forum describes the policy as a vital step toward improving fiscal transparency, predictability, and constitutional alignment across Nigeria’s federal, state, and local tiers.
The support was communicated by NGF Chairman and Kwara State Governor, AbdulRahman AbdulRazaq, in a statement issued by Yunusa Abdullahi, the NGF’s Director of Media and Strategic Communications, in Abuja on Monday. Governor AbdulRazaq specifically praised Executive Order 9, signed by President Bola Ahmed Tinuba on February 13, 2026. This directive realigns the flow of oil and gas revenues—including royalty oil, tax oil, profit oil, and profit gas—to ensure compliance with constitutional provisions.
He explained that the reforms are crucial for clarifying regulatory mandates within the petroleum sector and upholding the Federation Account as the cornerstone of Nigeria’s intergovernmental fiscal system. The Federation Account serves as the central pool for all federally collected revenues, which are then distributed among federal, state, and local governments. Oil and gas revenues constitute a significant portion of Nigeria’s national income, and their transparent management directly influences capital planning, debt sustainability, infrastructure projects, and public service delivery nationwide.
Governor AbdulRazaq noted that recent Federation Account Allocation Committee (FAAC) communiqués have consistently highlighted disparities between gross revenue collections and final distributable sums. For subnational governments, these distributable amounts determine fiscal capacity and budgetary planning. He argued that layered or unclear remittance pathways weaken predictability, disrupting capital cycles at all government levels.
With Nigeria’s population exceeding 220 million and expanding rapidly, states are positioned on the frontlines of providing education, primary healthcare, infrastructure, security, and economic opportunities. Predictable revenue flows, therefore, empower states to meet these responsibilities effectively. The NGF chairman linked revenue clarity to enhanced public service delivery, stating that structural transparency in remitting nationally owned resources fosters fiscal stability. “Predictability improves planning. Planning improves delivery,” he remarked.
As a non-partisan body, the NGF emphasized that the integrity of Federation Account inflows is fundamental to fiscal federalism. The forum reaffirmed its commitment to collaborating with the Federal Government to ensure these reforms translate into tangible development outcomes for all Nigerians, supporting sustainable growth through disciplined revenue management and institutional alignment.
