President Tinubu Approves Write-Off of NNPC’s $1.42bn and ₦5.57tn Debt to Federation Account
President Bola Ahmed Tinubu has authorized the cancellation of significant debts owed by the Nigerian National Petroleum Company Limited (NNPC Ltd) to the Federation Account, erasing obligations totaling $1.42 billion and ₦5.57 trillion. The decision follows a detailed reconciliation between government agencies aimed at resolving long-standing financial discrepancies.
The approval was documented by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and presented at the November 2025 meeting of the Federation Account Allocation Committee (FAAC). The report, titled “Report of October 2025 Revenue Collection Presented at the Federation Account Allocation Committee Meeting Held on 18th November 2025,” was obtained by The PUNCH and sheds light on the fiscal dealings between NNPC Ltd and the federation.
The debts were cleared after a thorough review of records between NNPC Ltd and the Federation Account, addressing unresolved issues related to crude oil revenue remittances, cost recoveries, and subsidy-related deductions. The exercise examined historical obligations from crude oil sales, joint venture cash calls, production losses, pipeline maintenance, and legacy subsidy claims accumulated over several years.
Officials said the reconciliation aimed to resolve inherited accounting challenges, align financial records with post-Petroleum Industry Act reforms, and create a transparent baseline for future revenue remittances.