The Digest:
President Bola Tinubu has approved the cancellation of $1.42 billion and N5.57 trillion in legacy debts owed by the Nigerian National Petroleum Company Limited to the Federation Account, following a reconciliation process. The move, disclosed in a Nigerian Upstream Petroleum Regulatory Commission report, wipes out approximately 96% of the dollar-denominated obligations and 88% of the naira balances previously flagged as outstanding.
Key Points:
- Presidential approval cancelled $1.42 billion and N5.57 trillion of NNPC’s debt to the Federation
- The write-off followed recommendations of a stakeholder alignment committee
- It covers obligations up to December 31, 2024, but 2025 debts remain outstanding
- NUPRC data shows a N5.65 trillion revenue shortfall as of November 2025
- Royalty collections fell N538.92 billion below target in November alone
- The move comes amid unresolved disputes over the alleged $42.37bn NNPC under-remittance between 2011–2017
- The World Bank has previously criticized NNPC for revenue leakages and remittance gaps
Sources: NUPRC Report, Presidency, The PUNCH
