Amanze Chinonye
President Tinubu has given approval for the write-off of a significant portion of debts owed by the Nigerian National Petroleum Company Limited (NNPC Ltd) to the Federation Account, amounting to about $1.42 billion and N5.57 trillion, Prime Business Africa reports.
Details of the approval were contained in a document prepared by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and tabled at the November 2025 meeting of the Federation Account Allocation Committee (FAAC).
The document explained that the decision followed recommendations by the Stakeholder Alignment Committee, which was constituted to reconcile long-standing financial obligations between NNPC Ltd and the Federation.
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Under the approval, all legacy debts accumulated up to December 31, 2024 have been cancelled.
These obligations arose from various petroleum sector arrangements, including Production Sharing Contracts (PSCs), domestic crude oil supply commitments, repayment agreements, modified carry arrangements, and joint venture and PSC royalty receivables.
It was also disclosed that necessary accounting entries have already been made in the Federation Account to reflect the debt cancellation.
However, the write-off does not extend to debts incurred in 2025. Obligations accumulated between January and October 2025 remain outstanding, with the document noting that they are being monitored and subjected to recovery processes.
Separately, the report referenced a protracted dispute over an alleged $42.37 billion under-remittance covering the period between 2011 and 2017. NNPC Ltd has continued to dispute the claim, insisting that all revenues due to the Federation during that period were fully remitted.
The approval represents one of the most consequential fiscal interventions involving NNPC Ltd under the Tinubu administration, as the government intensifies efforts to resolve legacy accounting issues within Nigeria’s oil and gas sector.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
