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States Tackle FG Over PIA
The 36 state governments met, yesterday, at the Federation Account and Allocation Committee (FAAC) meeting to review the Petroleum Industry Bill, which was signed into law, last Monday by President Muhammadu Buhari.
A top official of the Federal Ministry of Finance said the state governments had put the ministry on notice that they would state their grievances with the Petroleum Industry Act at the FAAC meeting.
Ahead of the FAAC meeting, the Nigerian Bar Association (NBA) advised the state governors to challenge the Act in court.
The FAAC consists of the Minister of Finance as chairman, all state commissioners of finance, state accountants-general, Accountant-General of the Federation and the Permanent Secretary in the Federal Ministry of Finance, who is the secretary.
It meets monthly to share revenues among the federal, state and local governments.
Reports had indicated that before the President signed the PIB, state governors had on August 10 written to ask him to withhold his assent.
According to the reports, the governors argued that the Petroleum Industry Act would deny the states their fair share from the Federation Account because it favoured the Federal Government and the Nigerian National Petroleum Corporation (NNPC), which would transform into a limited liability company.
Last Wednesday, a state official, stated, “The governors have directed their commissioners for finance to get a copy of the Act signed by the President. Obviously, the law will top the agenda of the FAAC meeting.
“State commissioners will raise the misgiving the states have about the law at the FAAC meeting and take a common position.”
When contacted, the Chairman, Forum of Commissioners of Finance, David Olofu, said members would meet and review the PIA.
Olofu, who is Benue State’s Commissioner for Finance, who spoke in Makurdi, confirmed that the FAAC meeting would hold, Thursday (yesterday).
He stated, “I am still trying to get to the crux of the Act so that I can review it; it is after I review it that I can make a statement. We are having the FAAC meeting today; we will get the law and review it and then get back to you.”
The Publicity Secretary of the Nigerian Bar Association, Rapulu Nduka, noted that people in different parts of the country had been making comments on the provisions of the PIA, adding that some of them were feeling short-changed.
He stated, “Lawmaking is one of the responsibilities of the legislature and since there are legislators from all states of the federation, then there should be proper representation.
“The purpose of having legislators from all states is that they should be able to debate laws before they are passed in order to ensure that those laws are made in the interest of every region.
“If the governors believe that some parts of the Act are unconstitutional, then by all means, let them approach the courts. They should go to court to challenge the aspects, which they believe are unconstitutional.”
Also, a Senior Advocate of Nigeria, Babatunde Ogala, stated, “This is a law that has been in the works for a very long time. We are not oblivious to the reservations of different commentators and groups, especially in the South-South.
“I believe it is a step in the right direction since we now have three per cent, where we once had nothing. However, the Act can still be amended if it proves to be unsatisfactory.”
A Senior Advocate of Nigeria, Chief Mike Ozekhome, last Wednesday, called on state attorneys general to challenge the Federal Government on the PIA.
Ozekhome, faulted the decision of the President to sign the law, and called on state attorneys general to challenge the Federal Government at the Supreme Court.
He said, “The entire Act is a mere ruse in monstrosity, artifice and design, carefully crafted, incubated and delivered to actually do irretrievable violence to the principles of federalism and the doctrine of separation of powers ably propounded in 1748 by Baron de Montesquieu, a great French philosopher.
“The Act seeks to frontally attack Section 162 of the 1999 Constitution, which provides that all revenues accruing to the federation shall be paid into a Federation Account from which sharing shall be made among the three tiers of government.
“This is unconstitutional and it must be struck down in accordance with Section 1(3) of the 1999 Constitution of Nigeria. In a sane clime, the cash cow, the NNPC, ought to be unbundled to make it more productive, transparent and accountable to the Nigerian people.
“But most curiously, the Act has strengthened its hand of non-accountability and non-responsibility.
“How can the Federal Government alone have shares in the only viable cash cow of Nigeria to the total exclusion of the other three tiers of government, major stakeholders, oil-bearing communities and the long-suffering people of the Niger Delta?
“How can an Act of Parliament, rather than assuage and ameliorate the sufferings of a beleaguered people, further compound them by reaffirming the people’s perilous status as slavish hewers of wood, drawers of water, masseurs of ego and side-line onlookers in the exploitation and use of their God-given wealth through their natural resources?
“The 36 state attorneys general should immediately approach the Supreme Court and challenge the Federal Government’s impunity and the act of exclusive lawlessness and legislative rascality by invoking the original jurisdiction under Section 233 (1) of the 1999 Constitution.”
President of the Senate, Dr Ahmad Lawan, last Wednesday, gave an insight into what the National Assembly did to get the PIB.
Lawan disclosed the strategy adopted by the 9th National Assembly while answering questions from journalists shortly after a brief ceremony at the Presidential Villa.
The Senate President said, “Everyone knows that the Petroleum Industry Bill suffered a lot of hiccups in the National Assembly previously but when we came in 2019, both chambers identified the passage of the PIB as one very strong, fundamental, critical and strategic bill that we must pass within the life cycle of this 9th National Assembly.
“And by the Grace of God, we redefined the way to go about it because we would have learnt from the mistakes of the past on the issue. And what we emphasised and that worked for us to achieve what we did was to ensure that we work very closely with the executive arm of government right from the conception of the bill itself.”
The Rivers State Government has called on stakeholders, community leaders, parents and relevant education authorities to intensify efforts to identify and enrol out-of-school children across Nigeria, stressing that every child deserves access to quality and inclusive education.
Governor Siminalayi Fubara made the call, yesterday, during the regional campaign on engaging community structures to promote the enrolment of out-of-school children and the regional flag-off of the 2026/2027 enrolment drive for southern states, held in Port Harcourt.
Represented by the Secretary to the State Government, Dr Dagogo Wokoma, Governor Fubara reaffirmed that education remains a fundamental pillar of sustainable development and emphasised the need to ensure that no child is left behind because of economic hardship, social background or other barriers to schooling.
He noted that expanding access to education was essential to promoting sustainable development, social inclusion and equal opportunities, enabling children to reach their full potential and contribute meaningfully to society.
The governor urged participating states and communities to translate their commitments into concrete and measurable actions by reaching vulnerable children, strengthening community engagement and encouraging parents and guardians to make their children’s education a priority.
He reiterated the state government’s commitment to initiatives aimed at expanding access to education, particularly for children excluded from formal schooling.
“Rivers State remains committed to supporting initiatives that expand access to inclusive and quality education, particularly for vulnerable children who may have missed the opportunity to attend formal schools,” Fubara stressed.
Also speaking, the Executive Secretary of the Universal Basic Education Commission (UBEC), Aisha Garba, described the growing number of out-of-school children as one of the major challenges confronting the education sector.
She called for a collective and collaborative approach among governments, communities, parents and other stakeholders to address the problem, stressing the need to ensure that no Nigerian child is denied the fundamental right to education.
The programme was organised by the Universal Basic Education Commission in collaboration with the Rivers State Government, as part of efforts to strengthen community participation and promote school enrolment across the southern states for the 2026/2027 academic session.
The Federation Account Allocation Committee (FAAC) has shared the sum of N2.428 trillion among the Federal Government, 36 states government and the 774 Local Government Councils (LGCs) as revenue for the month of September.
The Director, Press and Public Relations, Office of the Accountant-General of the Federation (OAGF), Mr Bawa Mokwa, said this in a statement in Abuja, yesterday.
Mokwa said the allocation was approved by FAAC at its October meeting held in Abuja.
He said the N2.428 trillion distributable revenue comprised of statutory revenue of N1.672 trillion, distributable Value Added Tax (VAT) revenue of N756.587 billion.
Mokwa quoted the FAAC communiqué as saying that total gross revenue of N3.913 trillion was available in the month of September 2026.
He said a total deduction for cost of collection was N131.758 billion while total transfers, refunds and savings of N1.352 trillion.
According to him, a gross statutory revenue of N3.096 trillion was received for the month of September 2026.
“This was higher than the sum of N2.850 trillion received in the preceeding month by N246.384 billion.
“Gross revenue of N816.872 billion was available from the Value Added Tax (VAT) in September 2026.
“This was lower than the N834.843 billion available in the month of August 2026 by N17.972 billion,” he said.
Mokwa explained that the Federal Government received N832.242 billion and the state governments received the sum of N799.872 billion.
He said the LGCs received N560.660 billion, while the sum of N236.049 billion (13% of mineral revenue) was shared to the benefiting state as derivation revenue.
Mokwa said in the N1.672 billion distributable statutory revenue, the Federal Government received N756.583 billion and the State Governments received N383.749 billion.
He said the LGCs received N295.855 billion and the sum of N236.049 billion (13% of mineral revenue) was shared to the benefiting States as derivation revenue.
The director said from the N756.587 billion distributable Value Added Tax (VAT) revenue, the Federal Government received N75.659 billion, the State Governments received N416.123 billion and the LGCs received N264.805 billion.
“In September 2026, Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), Petroleum Royalties, Import Duty, CET Levies and Excise Duty increased significantly.
“Also, Companies Income Tax (CIT), CGT & SDT, Value Added Tax (VTA), Mineral Royalties, and Gas Flared Penalty, Rental Gas Flared Fee and Misc. Oil Revenue decreased considerably,” he said.
The ultimatum followed a joint meeting of the National Executive Council and Central Working Committee of the NLC held at the Olaitan Oyerinde Hall, Labour House, Abuja.
In a communiqué signed by the NLC President, Joe Ajaero, and made available to newsmen, yesterday, the union said the two-week ultimatum would commence on Friday, October 9, 2026.
It warned that failure by the government to meet its demands would compel the Congress to take further action.
The NLC specifically demanded that the government reduce the price of Premium Motor Spirit to the level it was when the current national minimum wage was signed into law in 2024.
It also demanded the immediate commencement of negotiations for a new minimum wage, implementation of the February 5, 2026, Terms of Settlement reached with the Joint Health Sector Unions and Assembly of Healthcare Professionals, and action on the demands of the Joint Public Sector Negotiating Council.
The Congress further demanded tax relief and immediate wage awards for workers, arguing that the measures were necessary to cushion the impact of rising living costs.
The NLC said, “The current national minimum wage has been rendered worthless by the relentless depreciation of the naira and the astronomical rise in the cost of living.”
It added that workers could no longer meet basic needs, including food, shelter, healthcare, transportation and education, on their current earnings.
The labour body, therefore, demanded that the Federal Government commence renegotiation of the national minimum wage before the end of October.
“NEC-in-session demands that the Federal Government commence the renegotiation of the national minimum wage before the end of this month,” the communiqué stated.
The Congress also linked the erosion of workers’ purchasing power to the high cost of petrol, saying the price of the commodity had continued to drive up transportation costs and the prices of other essential goods.
“The exorbitant pump price of petrol has had a cascading effect on the cost of transportation, food, and other essential goods, further deepening the hardship of workers and the masses,” it said.
The NLC further demanded that the government grant tax relief to workers and immediately introduce wage awards, describing the measures as “the bare minimum required to alleviate the suffering of Nigerian workers and restore a measure of dignity to their lives.”
The latest ultimatum escalates the labour movement’s pressure on the Federal Government after public-sector workers under the Joint National Public Service Negotiating Council embarked on a three-day warning strike earlier in October over rising living costs, petrol prices, wage awards and minimum wage negotiations.
The workers had demanded, among other measures, a reduction in petrol prices and the commencement of negotiations for a new minimum wage.
The NLC had also raised concerns in September over the declining purchasing power of workers, with Ajaero arguing that the N70,000 minimum wage had been overtaken by increases in the cost of food, transportation, housing, education and other essential expenses.
The current minimum wage was approved by President Bola Tinubu in July 2024 after negotiations involving the government, organised labour and the private sector.
Tinubu increased the Federal Government’s offer from N62,000 to N70,000 and agreed that the wage should be reviewed after three years rather than five years.
The NLC’s latest demand comes as the Federal Government announced fresh measures aimed at containing petrol-price pressures.
Yesterday, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the government was negotiating a ceiling of N1,350 per litre on the ex-gantry or landing cost of petrol, with monthly reviews, as part of measures to reduce price volatility.
The proposed ceiling does not mean petrol would necessarily sell at N1,350 per litre at filling stations.
The government also announced a 30-day discount on petrol dispensed by the Nigerian National Petroleum Company Limited (NNPCL), with priority given to public transporters.
Oyedele said the arrangement was not a return to subsidy but an effort to sell the product at cost.
However, the NLC is seeking a more substantial reduction, insisting that petrol should return to the price level that prevailed when the N70,000 minimum wage was enacted in 2024.
The Congress also called for the implementation of the agreement reached with JOHESU in February, as well as the demands presented by the Joint Public Sector Negotiating Council.
It warned that failure to respond within the two-week period would have consequences.
“Failure of which the NLC will be compelled to take remedial steps as would be directed by the relevant organs,” the communiqué said.
The union consequently directed its affiliates and allies to remain prepared for further action.
“NEC-in-session reaffirms the historical responsibility of the NLC to resist all forms of exploitation and oppression,” it stated, urging its affiliates to remain “on high alert and fully prepared to engage in decisive efforts against all anti-people policies.”
The development also comes amid fresh labour tensions in Abuja, where the FCT Council of the NLC commenced an indefinite strike on Wednesday over disputes with the FCT Administration concerning teachers’ promotion policies.
The council directed workers across public and private establishments to withdraw their services after the expiration of a seven-day ultimatum.
The latest NLC ultimatum puts renewed pressure on the Federal Government to address wage and fuel-price concerns as both sides grapple with disagreements over the implementation of previous labour agreements and measures to cushion the impact of economic reforms.
The NLC said its demands were aimed at protecting workers and the wider population from further deterioration in their standard of living, insisting that Nigerian workers must remain “resolute, organised, and uncompromising” in the struggle for improved living conditions.
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