The South-South Governors Forum has hailed President Bola Tinubu’s Executive Order requiring the direct remittance of all oil and gas revenues to the Federation Account as a historic and landmark move.

Chairman of the forum and Bayelsa State Governor, Senator Douye Diri, said in a statement on Wednesday that governors in the region welcomed the directive, describing it as a crucial step toward restoring constitutional integrity in Nigeria’s petroleum sector.

The Forum said the Executive Order was far-reaching, unequivocal, and encouraging, noting that it renewed hope that after years of opaque and complicated deduction practices, the federal, state, and local governments would start receiving their full entitlements from the Federation Account.

The statement read, “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 of the nebulous 30 per cent Frontier Exploration Fund.

The fund frequently resulted in substantial idle cash reserves.

“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,” it stated.

The Forum also applauded President Bola Tinubu for initiating a comprehensive review of the Petroleum Industry Act, describing the move as evidence of a responsive leader who puts the people’s interests first.

It added that the states—especially Bayelsa State, had long called for a reassessment of the law, warning that the current framework posed significant risks if left unaddressed.

“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 to oil communities, which was reduced from 10 per cent, as proposed by the 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 governments 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 a crisis, and we urge Mr President to review it,” it added.