December 29, (THEWILL) — President Bola Tinubu has approved the cancellation of a substantial portion of the Nigerian National Petroleum Company (NNPC) Limited outstanding debts owed to the Federation Account, effectively writing off approximately $1.42 billion and ₦5.57 trillion in legacy obligations.
The decision, detailed in a document prepared by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), was presented at the November 2025 Federation Account Allocation Committee (FAAC) meeting.
A statement by the Presidency stated that the decision follows recommendations from the Stakeholder Alignment Committee, tasked with reconciling long-standing indebtedness between NNPC Ltd and the Federation.
The debt write-off covers legacy obligations up to December 31, 2024, including “Production Sharing Contracts (PSC), Domestic supply obligations, Repayment agreements, Modified carry arrangements and Joint venture/PSC royalty receivables.”
The Presidential statement further disclosed that corresponding accounting adjustments have already been made in the Federation Account to reflect the cancellations.
The document further clarified that new obligations incurred between January and October 2025 remain outstanding and are actively being tracked for recovery.
A separate, long-standing dispute over an alleged $42.37 billion under-remittance (2011–2017) remains unresolved, with NNPC Ltd maintaining that all revenues during the period were properly accounted for.
The move underscores the Tinubu administration’s commitment to resolving legacy financial issues while strengthening accountability in national resource management.
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