- Tinubu government cancels ₦7.58trn NNPC debt.
- Decision follows detailed FG–NNPC reconciliation.
- Write-off covers legacy oil obligations.
- New 2025 debts still under recovery.
The Federal Government under President Bola Ahmed Tinubu has officially cleared a substantial portion of the Nigerian National Petroleum Company Limited (NNPC Ltd) debt owed to the Federation Account.
The approval wipes off $1.42 billion (₦2.059 trillion) and an additional ₦5.57 trillion, bringing the total debt cancellation to ₦7.58 trillion. The decision followed a detailed reconciliation exercise between both parties.
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According to documents presented at the November 2025 Federation Account Allocation Committee (FAAC) meeting, the write-off was based on recommendations from the Stakeholder Alignment Committee on the Reconciliation of Indebtedness between NNPC Ltd and the Federation.
The reconciliation work was carried out by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), with all necessary accounting adjustments already reflected in the Federation Account.
The cancelled debt covers legacy obligations up to December 31, 2024, including:
- Production Sharing Contracts (PSC)
- Domestic crude supply obligations
- Modified carry arrangements
- Joint venture and PSC royalty receivables
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A source familiar with the process said the move was aimed at “aligning government records with verified financial realities.”
“The write-off followed a clean reconciliation. What was cleared were legacy debts that had already been reviewed and agreed upon by all stakeholders,” the source said.
However, officials confirmed that newer obligations incurred between January and October 2025 remain outstanding and are currently being tracked for recovery.
Meanwhile, a long-standing dispute over an alleged $42.37 billion under-remittance between 2011 and 2017 remains unresolved. NNPC Ltd has continued to reject the claim, insisting that all revenues during the period were fully accounted for.
