President Bola Tinubu has approved the cancellation of a significant portion of debts that the Nigerian National Petroleum Company Limited (NNPC Ltd) owed to the Federation Account.
As a result, the move wipes off approximately $1.42 billion and ₦5.57 trillion, providing relief to the nation’s finances and resolving long-standing disputes.
Tinubu Cancels NNPCL Legacy Debts
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) documented the directive in its “Report of October 2025 Revenue Collection,” which it presented at the Federation Account Allocation Committee meeting on November 18, 2025.
Consequently, the decision clears legacy debts that NNPCL accumulated up to December 31, 2024, while the commission continues monitoring current liabilities from 2025 operations.
Debt Figures And Presidential Action
According to the report, the October 2025 FAAC meeting showed debts of $1.48 billion and ₦6.33 trillion, covering PSC, DSDP, RA & MCA liftings, and JV & PSC royalty receivables.
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After the Presidential approval, the government cancelled about $1.42 billion and ₦5.57 trillion of these obligations and implemented all accounting entries in the Federation Account.
Moreover, the Stakeholder Alignment Committee on the Reconciliation of Indebtedness reviewed royalty and lifting-related liabilities up to 2024 and recommended this action.
Although the government cleared legacy debts, NNPC Ltd continues to accrue new obligations in 2025, with total statutory obligations from January to October reaching $56.81 million and ₦1.02 trillion.
Revenue Gaps Persist
Revenue collection still presents challenges.
For example, November 2025 receipts fell to ₦605 billion against the ₦1.144 trillion target, creating a shortfall of ₦539 billion.
Nevertheless, NNPC Ltd reported strong performance, increasing revenue to ₦5.08 trillion in October and profit after tax to ₦447 billion.
Overall, President Tinubu’s action stabilises the Federation Account and resolves historic disputes.
Yet, persistent revenue gaps highlight the urgent need for NNPC Ltd to strengthen fiscal management and enhance operational oversight.
