President Bola Tinubu has approved the write-off of a large portion of debts owed by the Nigerian National Petroleum Company Limited (NNPC Ltd) to the Federation Account, clearing about $1.42bn and N5.57tn after a reconciliation of records.
The approval is contained in a document prepared by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and presented at the November meeting of the Federation Account Allocation Committee (FAAC).
According to the document, NNPC Ltd’s outstanding obligations earlier reported at the October 2025 FAAC meeting stood at $1.48bn and N6.33tn, covering crude oil liftings and royalty receivables. Following presidential approval, most of the balances were removed from the Federation’s books.
“The commission recently received a Presidential Approval to nil off the outstanding obligations of NNPC Ltd as at 31st December 2024,” the document stated.
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The NUPRC added that $1.42bn and N5.57tn were written off, noting that “the commission has passed the appropriate accounting entries as approved.” The clearance represents about 96 per cent of the dollar debt and 88 per cent of the naira liabilities previously recorded.
However, fresh obligations incurred in 2025 remain. The regulator disclosed that debts arising between January and October 2025 stood at $56.81m and N1.02tn, adding that $55m had been recovered, leaving a balance of $1.8m.
The development settles long-running disputes over NNPC’s legacy debts, even as scrutiny continues over the company’s revenue remittance practices.