President *Bola Ahmed Tinubu* has approved the cancellation of roughly *$1.42 billion* (about *?5.57 trillion*) in legacy debts owed by the *Nigerian National Petroleum Company Limited (NNPC Ltd)* to the Federation Account, following a comprehensive reconciliation of accounts between the state oil firm and the federal government.
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According to documents prepared by the?
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*Nigerian Upstream Petroleum Regulatory Commission (NUPRC)* and presented at the November 2025 meeting of the *Federation Account Allocation Committee (FAAC)*, the write?off relates to historical obligations accumulated up to December 31, 2024, including dues from crude oil liftings, production?sharing contracts, and joint venture royalties. ?
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The decision follows a detailed review by a stakeholder committee tasked with reconciling longstanding claims between NNPC Ltd and the federal government. It aims to resolve ongoing disputes over revenue remittances and legacy liabilities that have clouded fiscal accounts for years. ?
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While the write?off wipes out the bulk of past obligations, it does not absolve fresh debts incurred in 2025, which will still be collectible as part of ongoing revenue tracking. The move is part of broader fiscal reforms under Tinubu’s administration designed to enhance transparency and reset financial relations between government entities in Nigeria’s crucial oil sector. ?
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