President Bola Tinubu has authorized the waiver of a substantial amount of debt owed to the Nigerian National Petroleum Company Limited. This debt waiver is aimed at outstanding debts up to the 31st of December 2024.
The decision comes after an intensive reconciliation process. Stakeholders reviewed records between NNPC and the Federation Account. As a result, the government removed most legacy obligations.
Breakdown of Cleared Amounts
The cleared debts total $1.42 billion and ₦5.57 trillion. Initially, NNPC owed $1.48 billion and ₦6.33 trillion for various royalties and liftings. However the presidency directed the nullification of these figures.
The Nigerian Upstream Petroleum Regulatory Commission handled the process. They presented a report at the Federation Account Allocation Committee meeting in November 2025. Consequently the commission updated the accounts accordingly.
This action covers production sharing contracts, direct sales, and joint venture royalties. In addition, it addresses modified carry agreements.
Basis and Process of Approval
A Stakeholder Alignment Committee reconciled the disputed amounts. They focused on debts up to the end of 2024. President Tinubu then issued a directive to clear them.
The approval ensures accurate financial reporting. Moreover it draws a clear line between old and new obligations. Officials implemented the changes promptly.
Outstanding Debts Post-2024
Not all debts vanished. Obligations from January to October 2025 remain. These include $56.81 million and ₦1.02 trillion.
The commission recovered some funds during this period. For example, they collected $55 million in one month. Therefore, recovery efforts continue for recent liabilities.
Implications for Nigerian Economy
With this write off, NNPC’s independence is promoted. NNPC is now free from the constraints associated with the past. Moreover the write off supports Nigeria’s reform program under President Tinubu.
Critics question the transparency of the process. They worry about potential revenue losses for the federation. Moreover supporters view it as a step toward fiscal stability.
The move aligns with broader debt management strategies. For instance the government has addressed other sectors like power and gas. As a result, investors may gain more confidence.
In conclusion, this decision marks a pivotal shift. It resolves long standing issues and sets the stage for sustainable energy sector development.
