SOUTH-SOUTH GOVS BACK OIL REVENUE ORDER

Governors of the South-South states have thrown their weight behind President Bola Tinubu’s Executive Order directing that all oil and gas revenues be paid directly into the Federation Account.

Chairman of the South-South Governors Forum and Governor of Bayelsa State, Senator Douye Diri, in a statement on Wednesday, described the move as historic and a major step toward restoring transparency in Nigeria’s petroleum sector.

The Forum said the directive is clear and far-reaching, expressing hope that it would end years of unclear deductions and ensure that federal, state and local governments receive their full entitlements.

According to the governors, the order will remove questionable deductions and end the 30 per cent Frontier Exploration Fund previously managed by the Nigerian National Petroleum Company Limited, which they said often led to idle funds.

They added that directing operators under Production Sharing Contracts to pay Royalty Oil, Tax Oil and Profit Oil straight into the Federation Account would help block revenue leakages.
The Forum noted that the decision would promote fairness, especially for oil-producing states, and could increase funds available for infrastructure, healthcare and education across the country.

The governors also welcomed the President’s plan to review the Petroleum Industry Act, saying it shows leadership that listens to the concerns of the people.
They maintained that the current law needs urgent review, particularly the reduction of host community allocation from the proposed 10 per cent to three per cent.

The Forum further called on the Federal Government to reconsider the exclusion of states and local councils from managing funds meant for oil communities, warning that the present structure could create tension if not addressed.

Reported by Bright Okpo