A significant amount of the Nigerian National Petroleum Company Limited’s (NNPC Ltd.) debts have been written off to the Federation Account by President Bola Tinubu.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) recently reported on this.
According to the report, President Tinubu eliminated around $1.42 billion and ₦5.57 trillion in NNPCL debts, respectively.
The NUPRC published documents titled “Report of October 2025 Revenue Collection Presented at the Federation Account Allocation Committee Meeting Held on 18th November 2025” that disclosed this information.
Debts owed by the NNPCL to the federation account up until December 31, 2024, have been written off with the President’s consent, although current obligations from 2025 activities are still being closely watched.
The commission attested to the implementation of all accounting entries in the Federation Account that reflected the debt cancellation.
The Stakeholder Alignment Committee on the Reconciliation of Indebtedness between NNPC Ltd and the Federation, which examined royalty and lifting-related liabilities to the end of 2024, made suggestions that the Presidential approval followed, according to the NUPRC.
The commission stated that the debts previously recorded at the October 2025 FAAC meeting were $1,480,610,652.58 and N6,332,884,316,237.13 for PSC, DSDP, RA & MCA Liftings and JV & PSC Royalty Receivables, respectively, under the section titled “Recovery from NNPC Ltd Outstanding Obligations.”
The statement stated, “However, the commission recently received a Presidential Approval to nil off the outstanding obligations of NNPC Ltd as at December 31st, 2024, as submitted by the Stakeholder Alignment Committee on the Reconciliation of Indebtedness between NNPC Ltd and the Federation.”
The NUPRC further stated that the affected outstanding obligations that have been zeroed out are $1,421,727,723.00 N5,573,895,769,388.45, out of $1,480,610,652.58 and N6,332,884,316,237.13. The relevant accounting entries have been approved by the commission.
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