President Bola Tinubu has approved the cancellation of a portion of the debts owed by the Nigerian National Petroleum Company Limited (NNPCL) to the Federation Account
The President directed a wiping off about $1.42bn and N5.57tn after a reconciliation of records between both parties.
This was contained in a document prepared by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and presented at the November meeting of the Federation Account Allocation Committee and obtained by Newsmen on Sunday.
The commission said the balances of debts earlier reported at the October 2025 FAAC meeting for PSC, DSDP, RA & MCA Liftings as well as JV & PSC Royalty Receivables had been removed from the Federation’s books.
An analysis of the figures showed that the presidential directive wiped out about 96% of the dollar-denominated debt and about 88% of the naira-denominated obligations previously reported as outstanding.
The document indicates that the approval followed the recommendations of the Stakeholder Alignment Committee on the Reconciliation of Indebtedness between NNPC Ltd and the Federation, which reviewed the company’s royalty and lifting-related liabilities up to December 31, 2024.
Despite the cancellation of the legacy balances, fresh debts built up in 2025 remain and the commission is struggling to meet its revenue projections for the year.
Edited by Favour Owonibi.