NGF backs direct Federation Account remittance

The Nigeria Governors’ Forum (NGF), under the chairmanship of AbdulRahman AbdulRazaq, has expressed strong support for reforms requiring oil and gas revenue entitlements to be remitted directly into the Federation Account, describing the move as critical to strengthening fiscal transparency, predictability, and constitutional alignment across all tiers of government.

The NGF said in a statement by Mr Yunusa Tanko Abdullahi, Director, Media & Strategic Communications on Monday that the Executive Order 9, signed by President Bola Ahmed Tinubu on 13 February 2026, directed the realignment of oil and gas revenue flows with constitutional provisions and clarified regulatory responsibilities within the petroleum sector.

” The Forum’s interest lies in the extent to which reforms enhance the transparency, predictability, and constitutional alignment of Federation Account inflows across all tiers of government.

“In this regard, the Forum recognises that the Executive Order requires government entitlements under production-sharing and related contracts, including royalty oil, tax oil, profit oil, and profit gas, to flow directly into the Federation Account, while strengthening the delineation of regulatory mandates across the sector.

“As a non-partisan body representing the 36 State Governors of the Federation, the NGF underscores that the integrity and predictability of Federation Account inflows are foundational to Nigeria’s fiscal federalism. Oil and gas revenues remain a 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.
Recent Federation Account Allocation Committee (FAAC) communiqués have consistently demonstrated a gap between gross revenue collections and final distributable sums. For subnational governments, it is the latter that determines fiscal capacity.

“When remittance pathways are layered, complex, or difficult to reconcile, fiscal predictability weakens, and that directly affects capital planning cycles across the Federation at federal, state, and local government levels.
Nigeria’s population now exceeds 220 million and continues to grow rapidly. States sit at the frontline of delivering education, primary healthcare, infrastructure, security architecture, and economic opportunity to this expanding population. Predictable revenue flows strengthen the ability of states to meet these obligations responsibly.
Commenting on the development, the Chairman of the Nigeria Governors’ Forum and Governor of Kwara State, His Excellency AbdulRahman AbdulRazaq, stated:

“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. Predictability improves planning. Planning improves delivery. The Governors’ Forum supports reforms that enhance transparency, reinforce constitutional alignment, and strengthen the collective capacity of governments to meet the needs of our growing population.”

The Forum reiterated that reforms, which strengthened fiscal coherence and reinforced the constitutional framework underpinning resource ownership, ultimately benefitted the entire Federation.

“Sustainable economic growth requires strong institutions, disciplined revenue management, and alignment between policy intent and operational execution.

“The Nigeria Governors’ Forum remains committed to collaborative engagement with the Federal Government and other stakeholders to ensure that fiscal reforms translate into improved development outcomes for Nigerians”, the statement said.