President Bola Tinubu has approved the cancellation of a significant portion of debts owed by the Nigerian National Petroleum Company Limited (NNPC Ltd) to the Federation Account, amounting to about $1.42 billion and ₦5.57 trillion.
The approval followed a reconciliation of financial records between NNPC Ltd and the Federation, as detailed in a document prepared by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and presented at the November 2025 meeting of the Federation Account Allocation Committee (FAAC).
According to the NUPRC’s report, titled “Report of October 2025 Revenue Collection Presented at the FAAC Meeting Held on 18th November 2025,” the debts previously reported at the October session were $1.48 billion and ₦6.33 trillion, covering obligations related to PSC, DSDP, RA & MCA liftings, and JV & PSC royalty receivables.
The commission confirmed that the Presidency had now approved the removal of most of these balances from the Federation’s financial books. The document stated that Tinubu granted “Presidential Approval to nil off the outstanding obligations of NNPC Ltd as of 31st December 2024,” based on recommendations from the stakeholder committee responsible for reconciling the indebtedness between NNPC Ltd and the Federation.
In its breakdown, NUPRC said that out of the total outstanding debts, $1.42 billion and ₦5.57 trillion had been written off, adding that it had made the necessary accounting adjustments in line with the approval.
