S/South governors, Agbakoba back Tinubu’s EO on oil revenue remittance

The statement reads: “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.

READ ALSO: FG targets 10–12% annual growth to achieve $1trn economy

“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 forum also expressed delight with Mr. President’s move to undertake a comprehensive review of the Petroleum Industry Act (PIA), saying it is an affirmation that he is a leader that listens and places the interest of the people above other considerations.

It said that the states, particularly Bayelsa, had persistently advocated for a review of the PIA as the extant Act was a ticking time bomb.

The statement further reads: “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.”

Agbakoba lauds decision

Agbakoba, who lauded the directive, also urged the President to set up the electoral offences tribunal as recommended by the Electoral Reforms Panel headed by Justice Mohammed Uwais.

He said the special court would halt incidence of electoral fraud that had marred the electoral process and boost public confidence in the ballot box.

On the Executive Order, Agbakoba advised the Attorney-General and Justice Minister Lateef Fagbemi (SAN) to approach the Supreme Court for clarification or that the PIA Act should be amended to reflect the dictates of the constitution.

He said: “We applaud President Bola Ahmed Tinubu for reclaiming Nigeria’s sovereignty by signing the Executive Order directing the direct remittance of oil and gas revenues to the Federation Account.”

Urging the president to revisit the Uwais Report, he said the onus should be on the electoral referee, that is, the Independent National Electoral Commission (INEC), to prove to the court that it conducted a free and fair election, instead of the petitioner who was chested.

He also said cases of rigging can only be halted if there is a special tribunal for the speedy trial of electoral offenders.

Agbakoba believes more credible Nigerians will enter politics if the process is free and fair.