President Bola Ahmed Tinubu has approved the cancellation of a substantial portion of the Nigerian National Petroleum Company Limited’s (NNPC Ltd) outstanding debts owed to the Federation Account, effectively wiping out about $1.42 billion in legacy obligations.
The decision was contained in a document by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and presented at the November 2025 meeting of the Federation Account Allocation Committee (FAAC). It followed recommendations by the Stakeholder Alignment Committee on the Reconciliation of Indebtedness between NNPC Ltd and the Federation.
According to the document, the write-off covers legacy obligations incurred up to December 31, 2024, including liabilities arising from Production Sharing Contracts (PSCs), Domestic Supply obligations, repayment agreements, modified carry arrangements, and joint venture and PSC royalty receivables.
It stated that the decision was based on reconciliation work carried out by the NUPRC, with corresponding accounting adjustments already effected in the Federation Account. While most historical debts have now been cleared, the document noted that newer obligations incurred between January and October 2025 remain outstanding and are currently being tracked for recovery.
Despite the development, a separate and long-running dispute over the alleged under-remittance of $42.37 billion between 2011 and 2017 remains unresolved. NNPC Ltd has consistently rejected the claims, maintaining that all revenues due to the Federation were properly accounted for during the period in question.
Meanwhile, NNPC Ltd’s Group Chief Executive Officer, Engr. Bashir Bayo Ojulari has reaffirmed the company’s commitment to peace, dialogue, and responsible energy development in Ogoniland, Rivers State. Ojulari spoke during a visit by a Federal Government delegation to the area on Monday, describing the engagement as a sign of renewed hope and partnership.
“This visit is a demonstration of hope. It affirms the commitment of the Federal Government, under the leadership of President Bola Ahmed Tinubu, to peace, dialogue, and rebuilding trust,” he said, adding that for NNPC Ltd, the engagement marked a new beginning anchored on mutual respect and shared responsibility.
While acknowledging Ogoniland’s painful history, the NNPC chief stressed that confronting the past was essential to building a different future. He commended the Presidential Committee on Ogoni Re-entry, chaired by Professor Don Baridam, and the National Security Adviser, Mallam Nuhu Ribadu, for their roles in building confidence and trust.
Ojulari said NNPC Ltd’s operations in Ogoniland would go beyond resource extraction, with a strong focus on people, livelihoods, and environmental protection. He also announced that the process for the full-time employment of 30 Ogoni indigenes had reached its final stage, with appointment letters already issued.
According to him, the new employees are expected to resume duties in January 2026, describing the move as a meaningful step toward shared progress, opportunity, and improved relations with host communities.
