Abuja – Nigerian governors are seeking clarification on President Bola Tinubu’s recent decision to write off $1.42 billion and N5.5 trillion of legacy debts owed by the Nigerian National Petroleum Company Limited (NNPC Ltd.) to the Federation.
The governors, during the January 2026 Federation Account Allocation Committee (FAAC) meeting, requested documentary evidence of the presidential approval for the debt write-off. They also demanded a physical verification of projects carried out by NNPC using the Frontier Exploration Fund (FEF) ¹ ².
*Background*
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) had announced the presidential approval for the debt cancellation, citing a reconciliation of records between NNPC and the Federation. The write-off covers financial obligations accrued up to December 31, 2024, including Production Sharing Contracts (PSC), oil royalties, and domestic reconciliation mechanisms ³.
*Concerns Raised*
However, public sector analysts and pressure groups have questioned the president’s powers to unilaterally cancel the debt, arguing that NNPC’s funds belong to the three tiers of government. Some experts argue that the president’s action may not be constitutional, as it lacks legislative authorization ⁴ ⁵.
The governors’ demand for evidence underscores the ongoing debate on transparency and accountability in Nigeria’s oil sector. The FAAC committee has requested NNPC to provide more information on the debt write-off, while an ad-hoc committee examines the utilization of FEF revenues ¹ ².
