The South-South Governors Forum (SSGF) has applauded President Bola Tinubu’s Executive Order directing the direct remittance of all oil and gas proceeds into the Federation Account, describing the move as historic and transformative.

Chairman of the Forum and Governor of Bayelsa State, Douye Diri, in a statement issued on Wednesday, said the governors of the oil-producing region view the directive as a major step toward restoring constitutional order and transparency in Nigeria’s petroleum sector.

According to the Forum, the Executive Order is clear, far-reaching, and encouraging, as it signals an end to years of unclear and complicated deduction practices. The governors expressed optimism that federal, state, and local governments would now receive their full statutory allocations from the Federation Account.

Diri noted that the Order would end opaque deductions and remove the controversial 30 per cent Frontier Exploration Fund managed by the Nigerian National Petroleum Company Limited (NNPCL), which has often been linked to the accumulation of idle funds.

The Forum further commended the provision requiring all operators and contractors under Production Sharing Contracts to remit Royalty Oil, Tax Oil, and Profit Oil directly to the Federation Account, saying the measure would help curb revenue leakages.

Describing the development as a victory for fiscal fairness, particularly for oil-producing states, the governors said the policy could boost funding for infrastructure, healthcare, education, and other key sectors across all three tiers of government.

The SSGF also welcomed the President’s decision to initiate a comprehensive review of the Petroleum Industry Act (PIA), noting that it reflects responsive leadership and a willingness to prioritise national interest.

The Forum reiterated its long-standing call for amendments to the Act, arguing that certain provisions are problematic. It maintained that the Host Community Fund allocation, which was reduced from the 10 per cent proposed by most South-South states to three per cent, should be reconsidered.

Additionally, the governors urged the Federal Government to review sections of the law that exclude states and local government councils from administering funds meant for oil-producing communities. They argued that sub-national governments are closer to the grassroots and better positioned to manage such resources.

The Forum warned that retaining the current structure of the Act without adjustments could fuel tensions, and therefore appealed to the President to undertake urgent reforms in the interest of national stability and equity.