The South-South Governors Forum (SSGF) has commended Bola Tinubu for issuing a new Executive Order mandating the direct remittance of all oil and gas revenues into the Federation Account.
The forum, through its Chairman and Governor of Bayelsa State, Douye Diri, described the directive as historic and far-reaching. In a statement issued on Wednesday, Diri said the region’s governors welcomed the move as a significant step towards restoring constitutional integrity in Nigeria’s petroleum sector.
He noted that the Executive Order was comprehensive, clear, and encouraging, expressing optimism that, after years of opaque and complicated deduction structures, the Federal, State, and Local Governments would begin to receive their full and rightful allocations from the Federation Account.
Diri further stated that the decision would eliminate questionable deductions and effectively strip the Nigerian National Petroleum Company Limited (NNPCL) of the controversial 30 per cent Frontier Exploration Fund. He observed that the fund had often resulted in substantial idle cash balances.
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According to him, the development marked a positive shift towards fiscal justice for sub-national governments, particularly oil-producing states. It could significantly boost funding for critical sectors such as infrastructure, healthcare and education across all three tiers of government.
The Bayelsa governor also welcomed Tinubu’s decision to undertake a comprehensive review of the Petroleum Industry Act (PIA), describing it as proof of a leader willing to listen and prioritise the interests of the people.
Diri explained that Bayelsa and other states had consistently advocated a review of the PIA, warning that certain provisions of the existing law posed long-term risks.
According to him, the PIA, as currently structured, is a ticking time bomb because the Federal Government sidelined states and local government councils to deal directly with host communities.
He urged the Federal Government to urgently review the provision that excludes states and local governments from administering funds meant for host communities.
“States and councils are closer to the people, and their exclusion was ill-advised. The current framework risks fuelling avoidable crises, and we call on Mr President to address it without delay.”
