S’South govs again Tinubu on direct oil income remittance

The South-South Governors Discussion board has described President Bola Tinubu’s Government Order mandating the direct remittance of all oil and fuel revenues to the Federation Account as a historic and landmark choice.

The SSGF Chairman and Governor of Bayelsa State, Senator Douye Diri, in an announcement on Wednesday, stated the area’s governors welcomed the choice as a vital shift in direction of the restoration of constitutional integrity in Nigeria’s petroleum sector.

The Discussion board stated the Government Order was complete, unambiguous, and heartwarming, and that it raised hope that after a few years of opaque and sophisticated deduction constructions, the federal, state, and native governments would start to obtain their rightful entitlements from the Federation Account.

The assertion learn, “The South-South area notably welcomes the important thing provisions of the Government Order, which might eradicate opaque deductions and successfully strip the Nigerian Nationwide Petroleum Firm Restricted of the nebulous 30 per cent Frontier Exploration Fund.

This fund typically led to massive idle money balances.

“Mandating all operators and contractors beneath Manufacturing Sharing Contracts to remit royalty oil, tax oil, and revenue oil on to the Federation Account will considerably plug income leakages.

“This choice is a constructive step in direction of fiscal justice for sub-nationals, notably the oil-producing states, simply as it will doubtlessly improve accessible funds for vital infrastructure, healthcare, schooling, and different sectors throughout the three tiers of presidency.”

The Discussion board additionally expressed delight at Mr President’s transfer to undertake a complete overview of the Petroleum Business Act, saying it’s an affirmation that he’s a pacesetter who listens and locations the curiosity of the individuals above different concerns.

It stated that the states, notably Bayelsa, had persistently advocated a overview of the PIA, because the extant Act was a ticking time bomb.

“The PIA, because it was designed, is a time bomb as a result of the Federal Authorities reduce off states and native authorities councils to deal immediately with communities. It’s our submission that the share resulting from oil communities, which was decreased from 10 per cent, as proposed by nearly all of states within the area, to 3 per cent, be revisited and reviewed.

“We additionally urge the Federal Authorities to right away overview the side the place states and native governments have been excluded from administering what’s as a result of communities. The states and councils are nearer to the communities, and it was unsuitable to have excluded them from the administration of those communities. The present Act is a recipe for a disaster, and we urge Mr President to overview it.”