ADC Accuses Tinubu of ‘Illegal’ NNPC Debt Write-Off, Says States Were Short-Changed

The African Democratic Congress (ADC) has accused President Bola Ahmed Tinubu of unlawfully approving the cancellation of legacy debts owed by the Nigerian National Petroleum Company Limited (NNPC Ltd) to the Federation Account, warning that the move violates constitutional provisions and denies states and local governments revenues due to them.

The allegation was contained in a statement issued by the party’s National Publicity Secretary, Mallam Bolaji Abdullahi, in which the ADC faulted what it described as an executive action carried out without legislative approval. The party also criticised the National Assembly for its silence over what it called a serious constitutional breach.

According to the ADC, documents submitted to the Federation Account Allocation Committee (FAAC) indicate that President Tinubu approved the removal of about $1.42 billion and N5.57 trillion in legacy NNPC debts from the Federation Account following a reconciliation exercise with sector regulators.

The liabilities reportedly covered outstanding obligations accumulated up to December 31, 2024, including amounts related to production sharing contracts, domestic supply obligations, royalty receivables and other legacy balances.

“The African Democratic Congress (ADC) is deeply alarmed by the action recently taken by President Bola Ahmed Tinubu, approving the cancellation of legacy debts owed by the Nigerian National Petroleum Company Limited (NNPC Ltd) to the Federation Account,” Abdullahi said.

The party expressed particular concern that most of the debts were written off without parliamentary approval, noting that nearly 96 per cent of the dollar-denominated obligations and about 88 per cent of the naira-denominated balances were removed through executive action.

“This write-off was done without legislative or parliamentary approval or clear constitutional authority,” the ADC stated.

It rejected claims that the cancellation was justified by a reconciliation process, arguing that such an explanation cannot override constitutional provisions on public revenue.

“This purported justification of ‘reconciliation’ cannot lawfully override the constitutional requirements for revenue sharing,” the party said.

The ADC stressed that the Federation Account is constitutionally protected and not subject to presidential discretion or the authority of the Federal Executive.

“Under Section 162 of the 1999 Constitution (as amended), all revenues due to the Federation, including oil sector receipts and related obligations, must be paid into the Federation Account and shared among the Federal, State, and Local Governments,” Abdullahi added.

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