By Jide Dominic, Yenagoa.
Following the recent Executive Order issued by President Bola Tinubu as regards oil revenue direct remittance to the Federation Account, Bayelsa Governor, Senator Douye Diri, has commended the move, describing it as a right step in the right direction.
Gov. Diri, who is the chairman of South/South Governor’s Forum (SSGF) further noted that Mr. President’s order is a welcome development, stressing that it is a critical move towards restoration of constitutional integrity in Nigeria’s Petroleum sector.
He opined that the Executive Order was quite comprehensive and would go a long way in raising hope that after many years of complex deductions structure, the federal, state and local governments would now begin to receive their statutory allocations directly from the federation account.
In his words: “The South/South region particularly welcome the key provisions of the executive order which would eliminate outdated deductions and effectively strip the Nigerian National Petroleum Company Limited (NNPCL) and the outrageous 30% Frontier Exploration Fund. The fund often led to idle cash balances.
“Mandating all operations and contractors under production sharing contracts to remit royalty oil, tax oil and profits oil directly to the Federation Account will significantly block revenue leakages, Governor Diri said.
The SSGF Chairman expressed delight with President Tinubu’s move to undertake a comprehensive review of the Petroleum Industry Act (PIA), adding that it is an affirmation that he is a leader that places the interest of the masses above other considerations.
He noted that the states, especially Bayelsa had been at the forefront of advocating for a review of the PIA as the extant act is not good enough for the oil producing state, urging the Federal Government to immediately review the aspect where states and local governments were excluded from administering what is due to the communities.
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