President Bola Ahmed 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 directive wipes off approximately $1.42 billion and ₦5.57 trillion accumulated up to December 31, 2024. 96% of the previously reported $1.48bn was cancelled, while 88% of the reported ₦6.33tn was wiped out.
This announcement follows a reconciliation exercise conducted by the Stakeholder Alignment Committee, involving the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and other key fiscal stakeholders.
The presidential directive writes off nearly all outstanding balances, clearing the books for a fresh start under the Petroleum Industry Act (PIA) framework.
While the 2024 debts or what is referred to as the legacy debts, have been largely cleared, NNPCL has already accumulated new statutory obligations during the current fiscal year from January – October 2025.
Despite clearing the recent legacy debts, a much older and larger ghost still haunts the books. The dispute over an alleged $42.37 billion (₦12.91tn) under-remittance between 2011 and 2017 remains unresolved, with reconciliation ongoing.
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