Tinubu Cancels $1.42bn NNPC Debt

President Bola Ahmed Tinubu has approved the cancellation of a significant portion of the Nigerian National Petroleum Corporation’s (NNPC) outstanding debts.

The development will see the wiping out of approximately $1.42 billion in legacy obligations.

In a statement shared on its X handle on Monday, the Presidency said the decision was detailed in a document by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and presented at the November 2025 Federation Account Allocation Committee (FAAC) meeting.

“The write-off follows recommendations from the Stakeholder Alignment Committee on reconciling indebtedness between NNPC Ltd and the Federation,” the statement said.

According to the statement, the debt cancellation covers legacy obligations up to 31 December 2024, including Production Sharing Contracts (PSC), domestic supply obligations, repayment agreements, modified carry arrangements, and joint venture/PSC royalty receivables.

The Presidency confirmed that corresponding accounting adjustments have already been made in the Federation Account to reflect the debt clearance, while new obligations for January to October 2025 remain outstanding and are being actively recovered.

“New obligations for January to October 2025 remain outstanding and are actively being tracked and recovered,” the State House noted.

The statement added that a separate, long-running dispute over an alleged under-remittance of $42.37 billion covering 2011 to 2017 is still unresolved.

“A separate, long-running dispute over an alleged under-remittance of $42.37 billion (2011–2017) remains unresolved, with NNPC Ltd rejecting the claims and insisting all revenues were properly accounted for.”

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