President Bola Tinubu has approved the cancellation of long-standing debts owed by NNPC Limited, clearing approximately $1.42 billion and ₦5.57 trillion in historical liabilities.
The move, detailed in the November 2025 FAAC meeting report from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), gives the state oil giant a cleaner balance sheet after a thorough reconciliation process.
Debts Cleared
- Around 96% of $1.48 billion in dollar obligations
- Nearly 88% of ₦6.33 trillion in naira obligations
These “zero-balance” amounts came from past production-sharing contracts, royalties and crude oil liftings through 2024.
NNPC still has new statutory dues for 2025 exceeding ₦1 trillion.
Purpose of the Write-Off
The clearance helps NNPC operate as a fully commercial company under the Petroleum Industry Act, free from old financial weights that could slow growth.
Ongoing Revenue Challenges
NUPRC reported ₦660 billion collected in November — well below the ₦1.2 trillion target. This leaves a cumulative 2025 shortfall of ₦5.65 trillion, mainly due to lower-than-expected oil and gas royalties.
Separate $42B Audit Dispute
A different audit alleges NNPC failed to remit $42.37 billion to the federation between 2011 and 2017. NNPC firmly disputes the claim, saying all revenues were correctly reported. The World Bank has called for greater openness to settle the matter.
NNPC’s Future Focus
New Group CEO Bayo Ojulari, appointed in April 2025, has pledged full adherence to the Petroleum Industry Act and stronger operational performance.
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