Tinubu Wipes Out $1.42 Billion And ₦5.57 Trillion NNPC Debt To Federation Account

President Bola Tinubu has approved the cancellation of a substantial portion of debts owed by the Nigerian National Petroleum Company Limited (NNPC Ltd) to the Federation Account.

According to a recent disclosure from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the President approved the write-off of approximately $1.42 billion and ₦5.57 trillion in outstanding obligations. The information was detailed in the NUPRC’s “Report of October 2025 Revenue Collection Presented at the Federation Account Allocation Committee Meeting Held on 18th November 2025.”

The debt forgiveness covers liabilities accumulated up to December 31, 2024, while obligations arising from 2025 operations remain under review. NUPRC confirmed that all accounting entries reflecting the cancellation have been implemented in the Federation Account.

The Presidential directive followed recommendations from the Stakeholder Alignment Committee on the Reconciliation of Indebtedness between NNPC Ltd and the Federation, which examined royalty and lifting-related liabilities through the end of 2024.

The NUPRC report indicated that, prior to cancellation, the debts amounted to $1,480,610,652.58 and ₦6,332,884,316,237.13, covering PSC, DSDP, RA & MCA liftings, as well as JV & PSC royalty receivables. Following the Presidential approval, the written-off balances now stand at $1,421,727,723.00 and ₦5,573,895,769,388.45. The commission confirmed that all necessary accounting adjustments have been made.