The Resource Centre for Human Rights & Civic Education (CHRICED) strongly condemns the Federal Government’s approval of a massive debt waiver for the Nigerian National Petroleum Company Limited (NNPC Ltd), amounting to $1.42 billion and N5.57 trillion owed to the Federation Account.
This unprecedented write-off, executed through executive fiat, without public scrutiny, legislative approval, or accountability for those responsible, represents a grave assault on transparency, fiscal discipline, and constitutional governance.
A Dangerous Precedent in a Time of Revenue Crisis
The Federal Government’s decision to cancel 96% of NNPC’s dollar-denominated debts and 88% of its Naira-denominated obligations effectively deprives the Federation Account of revenues meant to be shared among the federal, state, and local governments.
This fiscal giveaway comes at a time when:
• The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is underperforming its 2025 revenue target by over N5.65 trillion cumulatively.
• In November 2025 alone, NUPRC recorded a N544.76 billion revenue shortfall, including a N538.92 billion gap in royalty collections.
Writing off trillions of naira in receivables amid such alarming revenue deficits is not only irresponsible, it contradicts the government’s repeated claims of plugging leakages and strengthening public finance management.
No Audit. No Accountability. No Consequences.
CHRICED is deeply troubled that this debt cancellation was carried out:
• Without a transparent, independent forensic audit
• Without public debate in the National Assembly
• Without identifying or sanctioning officials responsible for the liabilities
This continues a long-standing pattern in Nigeria’s oil sector where institutions are shielded while individuals who perpetrate or enable corruption escape justice.
A Sector Defined by Impunity and Selective Justice
Nigeria’s oil and gas sector remains riddled with unresolved scandals:
• Former petroleum minister Timipre Sylva was recently declared wanted over the alleged diversion of $14.8 million meant for refinery construction.
• Business mogul Aliko Dangote’s petition against former NMDPRA CEO Farouk Ahmed exposed deep regulatory rot, yet its outcome remains uncertain.
• The infamous fuel subsidy fraud, involving trillions of naira in fake claims, was never fully investigated; only Farouk Lawan was prosecuted, while the principal beneficiaries walked free.
• Long-standing allegations of $42.37 billion in under-remittances between 2011 and 2017 remain unresolved.
• Persistent issues of crude theft, opaque swap deals, and disputed lifting figures continue to undermine national revenues.
These cases illustrate a system where corruption is recycled, whistleblowers are ignored, and accountability is optional.
NNPC Ltd’s “Commercial Autonomy” Now in Question
Under the Petroleum Industry Act (PIA), NNPC Ltd is expected to operate as a commercially driven entity governed by strict corporate standards.
However, forgiving trillions of naira owed to its sole shareholder, the Nigerian people, undermines this claim and exposes the company’s continued political insulation.
This decision sends a troubling message to investors, development partners, and credit rating agencies:
Nigeria’s fiscal governance remains unpredictable, discretionary, and vulnerable to political interference.
A Double Standard That Punishes Citizens
The debt waiver comes at a time when Nigerians are being burdened with new taxes and levies. It is unjust and unacceptable that:
• Ordinary citizens are compelled to pay more
• While a major revenue-generating institution like NNPC Ltd is absolved of trillions in obligations
This double standard shifts the burden of governance failures onto the people while shielding powerful state entities.
CHRICED’s Demands
In light of these disturbing developments, CHRICED calls for the following urgent actions:
- Immediate public disclosure of the full reconciliation report and justification for the debt waiver, including the roles of all officials involved.
- An independent forensic audit of NNPC’s historical and current financial obligations, with findings made public.
- Legislative intervention by the National Assembly, especially its petroleum, finance, and public accounts committees, to investigate the circumstances surrounding the cancellation.
- Comprehensive accountability that includes civil servants, regulators, and private sector collaborators, not just token prosecutions of a few political figures.
- Protection for whistleblowers and petitioners, ensuring that investigations are not quietly buried.
- Reform of FAAC governance, ensuring that decisions affecting federation revenues cannot be taken unilaterally by the executive.
The government cannot demand fiscal discipline from citizens while secretly forgiving trillions owed by powerful institutions.
True reform in the oil sector requires transparency, accountability, and justice, not accounting gimmicks or politically motivated write-offs.
Until those who looted, enabled, or concealed these financial crimes are held accountable, decisions like this will only deepen public distrust and reinforce the perception that Nigeria operates a system where impunity is rewarded and accountability is optional.
