ADC Condemns Tinubu Over NNPC Debt Cancellation as ‘Unconstitutional’

President Bola Tinubu’s recent decision to waive legacy debts owed to the Federation Account by the Nigerian National Petroleum Company Limited (NNPC Ltd) has been denounced by the African Democratic Congress (ADC).

The party denounced the executive action, which involves removing over $1.42 billion (USD) and N5.57 trillion (NGN) in legacy NNPC loans from public records, in a statement released on Saturday by its National Publicity Secretary, Mallam Bolaji Abdullahi.

According to reports, the order handles commitments resulting from production sharing arrangements, domestic supply obligations, royalty receivables, and other legacy accounts. It covers outstanding liabilities accumulating up to December 31, 2024.

According to the ADC, 88% of legacy balances denominated in naira and approximately 96% of legacy commitments denominated in dollars were wiped off by executive decree without the consent of the legislature or constitutional authority.

According to the party, the rationale of “reconciliation” is insufficient to supersede the constitutional mandates for revenue sharing.

Executive discretion has no bearing on the Federation Account. The statement said, “No President, including this one, has the unilateral authority to cancel revenues that are constitutionally due.”

“It is unconstitutional for any cancellation to lower revenue owed to State and Local Governments without legislative authority.”

The National Assembly’s approval of the action, according to the party, amounts to “active collusion or willful surrender.”

The ADC claims that such acts violate the Constitution and may give rise to impeachment proceedings.

“President Tinubu has consistently broken the Federal Republic of Nigeria’s Constitution.”

Abdullahi underlined, “The Federation Account belongs to all tiers of government and cannot be subject to the Federal Executive or the President’s discretion.”

Stressing that Nigeria is a country of laws, not of men, the ADC has urged all pertinent authorities to defend the Constitution and safeguard the interests of states and local governments.