President Bola Ahmed Tinubu has approved the cancellation of approximately $1.42 billion in outstanding debts owed by the Nigerian National Petroleum Company Limited (NNPCL) to the Federation Account.
The decision, detailed in a document by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), was presented at the November 2025 Federation Account Allocation Committee (FAAC) meeting.
The write-off covers legacy obligations up to December 31, 2024, including Production Sharing Contracts, domestic supply obligations, repayment agreements, modified carry arrangements, and joint venture/PSC royalty receivables.
While past debts have been largely cleared, newer obligations for 2025 (January–October) remain outstanding and are actively being tracked for recovery.
A long-standing dispute over alleged under-remittance of $42.37 billion between 2011 and 2017 remains unresolved, with NNPCL maintaining that all revenues were properly accounted for.
Meanwhile, NNPCL Group CEO Engr. Bashir Bayo Ojulari reaffirmed the company’s commitment to peace, dialogue, and responsible energy development in Ogoniland, Rivers State.
He highlighted ongoing efforts to prioritize community wellbeing and environmental protection, and confirmed that the employment of 30 Ogoni indigenes has reached its final stage, with the employees expected to resume work in January 2026.
Ojulari also commended the Presidential Committee on Ogoni Re-entry and the National Security Adviser, Mallam Nuhu Ribadu, for their leadership in rebuilding trust and confidence with host communities.