The South-South Governors Forum (SSGF) has hailed President Bola Tinubu’s Executive Order mandating direct remittance of all oil and gas revenues to the Federation Account as a “historic and landmark decision” that restores constitutional integrity in Nigeria’s petroleum sector.
In a statement issued on Wednesday, February 25, 2026, SSGF Chairman and Bayelsa State Governor Senator Douye Diri described the order as comprehensive, unambiguous, and heartwarming.
The Forum said it raises hope that after years of opaque and complex deduction structures, the federal, state, and local governments will now begin receiving their rightful entitlements from the Federation Account.
The statement read in part:
“The South-South region particularly welcomes the key provisions of the Executive Order, which would eliminate opaque deductions and effectively strip the Nigerian National Petroleum Company Limited (NNPCL) of the nebulous 30 per cent Frontier Exploration Fund. This fund often led to large idle cash balances.
“Mandating all operators and contractors under Production Sharing Contracts to remit Royalty Oil, Tax Oil, and Profit Oil directly to the Federation Account will significantly plug revenue leakages.
“This decision is a positive step towards fiscal justice for sub-nationals, particularly the oil-producing states, just as it would potentially increase available funds for critical infrastructure, healthcare, education and other sectors across the three tiers of government.”
The governors also expressed delight with President Tinubu’s commitment to undertake a comprehensive review of the Petroleum Industry Act (PIA) 2021, describing it as proof of leadership that listens and prioritises the interest of the people.
They noted that oil-producing states, especially Bayelsa, had long advocated for a review of the PIA, calling the current Act “a ticking time bomb.”
“The PIA, as it was designed, is a time bomb because the Federal Government cut off states and local government councils to deal directly with communities. It is our submission that the percentage due oil communities that was reduced from 10 per cent, as proposed by majority of states in the region, to three per cent be revisited and reviewed.
“We also urge the Federal Government to immediately review the aspect where states and local government were excluded from administering what is due to the communities. The states and councils are closer to the communities and it was wrong to have excluded them from the administration of these communities. The current Act is a recipe for crisis and we urge Mr President to review it.”
The statement underscores growing support from the South-South geopolitical zone for the Executive Order and signals strong backing for further reforms in the oil and gas sector.
