President Bola Tinubu has approved the cancellation of a substantial portion of the Nigerian National Petroleum Company Limited (NNPC Ltd)’s outstanding debts owed to the Federation Account, effectively wiping out approximately $1.42 billion in legacy obligations.
The decision, detailed in a document by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and presented at the November 2025 Federation Account Allocation Committee (FAAC) meeting, follows the recommendations of the Stakeholder Alignment Committee on the Reconciliation of Indebtedness between NNPC Ltd and the Federation.
The write-off covers legacy obligations up to December 31, 2024, including Production Sharing Contracts (PSC), Domestic Supply obligations, repayment agreements, modified carry arrangements, and joint venture/PSC royalty receivables.
The decision followed recommendations from the Stakeholder Alignment Committee and reconciliation work by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), with corresponding accounting adjustments already made in the Federation Account.
While past debts have been largely cleared, newer 2025 obligations (Jan–Oct) remain outstanding and are being actively tracked/recovered.
A separate, long-running dispute over alleged under-remittance of $42.37bn between 2011 and 2017 remains unresolved, with NNPC Ltd rejecting the claims and insisting all revenues were properly accounted for.
