President Tinubu cancels NNPC Ltd’s debts, wiping out $1.42 billion in legacy obligations to the Federation Account.
President Bola Tinubu has approved the cancellation of a significant part of NNPC Ltd’s outstanding debts. These debts belong to the Nigerian National Petroleum Company Limited. These debts are owed to the Federation Account. This cancellation effectively wipes out approximately $1.42 billion in legacy obligations.
The decision is detailed in a document by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). It was presented at the November 2025 meeting of the Federation Account Allocation Committee (FAAC), illustrating Tinubu’s direct involvement.
The Stakeholder Alignment Committee made the recommendations on the Reconciliation of Indebtedness. This involves NNPC Ltd and the Federation alongside President Tinubu’s office.
The write-off decision shows legacy obligations of up to 31 December 2024. This includes Production Sharing Contracts (PSC) and Domestic Supply obligations. It also covers repayment agreements, modified carry arrangements, and joint venture/PSC royalty receivables, an important move by Tinubu’s administration.
Yet, this decision is based on recommendations from the Stakeholder Alignment Committee and reconciliation
We were working with the NUPRC. Corresponding accounting adjustments have already been made in the Federation Account. This was done under President Tinubu’s guidance.
However, the past debts has been somehow largely cleared, newer 2025 obligations (Jan–Oct) remain outstanding and are being actively tracked/recovered.
A long-running dispute that is separated over the alleged under-remittance of $42.37bn between 2011 and 2017 remains unresolved. NNPC Ltd has rejected the claims. They insist that all revenues were properly accounted for, aligning with Tinubu’s recent efforts to ensure transparency.
Key Takeaways
- President Tinubu cancels NNPC Ltd’s debts, eliminating $1.42 billion in legacy obligations to the Federation Account.
- The decision comes from recommendations by the Stakeholder Alignment Committee and is documented by the NUPRC.
- The write-off includes various legacy obligations related to Production Sharing Contracts and Domestic Supply obligations.
- Although past debts have been largely cleared, newer obligations for 2025 are still being tracked.
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