The African Democratic Congress (ADC) has alleged that President Bola Ahmed Tinubu authorised the cancellation of outstanding debts owed by the Nigerian National Petroleum Company Limited (NNPC Ltd) to the Federation Account in violation of constitutional provisions.
The opposition party said the decision, which it described as an executive action taken without the approval of the National Assembly, has deprived states and local government councils of revenues lawfully due to them. It also criticized the federal legislature for what it termed silence in the face of an alleged constitutional breach.
In a statement issued by its National Publicity Secretary, Mallam Bolaji Abdullahi, the ADC said records presented to the Federation Account Allocation Committee (FAAC) indicated that about $1.42 billion and N5.57 trillion in legacy liabilities owed by NNPC Ltd were removed from the Federation Account following a reconciliation exercise with sector regulators.
According to the party, the debts covered obligations accumulated up to 31 December 2024, including those arising from production sharing contracts, domestic crude supply arrangements, royalty payments and other outstanding balances.
Abdullahi said the party was alarmed that the bulk of the liabilities were written off through executive approval, noting that approximately 96 percent of the dollar-denominated debts and 88 percent of the naira-denominated obligations were cancelled without recourse to the legislature.
The ADC rejected claims that the action was justified by a reconciliation process, insisting that such an explanation could not override constitutional requirements governing the management and distribution of public revenue.
It maintained that the Federation Account is protected by law and cannot be altered at the discretion of the President or the Federal Executive Council.
Citing Section 162 of the 1999 Constitution (as amended), the party stressed that all revenues accruing to the Federation, including oil-related income and associated obligations, must be paid into the Federation Account and shared among the federal, state and local governments in accordance with the law.
