Fresh findings don show say Federal Government no fully cancel royalty debt wey Nigerian National Petroleum Company Limited (NNPCL) owe Federation Account. Instead, wetin government approve na limited waiver of interest and penalties wey build up because of late payment.
But Resource Centre for Human Rights and Civic Education (CHRICED) don strongly criticise the Federal Government over decision to waive about $1.42 billion and N5.57 trillion debt wey NNPCL owe Federation Account.
According to investigation, NNPCL main royalty obligation no dey forgiven at all. The waiver na only for accumulated interest and penalties wey come as result of delayed remittance, especially during period when petrol price control seriously affect the company cash flow.
Sources explain say delay for royalty payment mostly come from petrol under-recovery cost for 2023 and 2024, when NNPCL dey absorb difference between government-regulated pump price and real landing cost of petrol. This situation tie down plenty of the company funds and make am hard to meet statutory payments on time.
One source talk say, “No royalty write-off happen. Na only interest and penalties from late payment dem waive,” adding say from July last year, NNPCL don dey remit royalties as at when due.
The clarification follow reports say President Bola Tinubu
approve cancellation of huge debts owed by NNPCL to Federation Account, put at about $1.42 billion and N5.57 trillion. The approval come from document wey Nigerian Upstream Petroleum Regulatory Commission (NUPRC) prepare and present for November Federation Account Allocation Committee (FAAC) meeting.
For NUPRC report on October 2025 revenue collection, outstanding obligations earlier reported to FAAC stand at $1.48 billion and N6.33 trillion. These debts link to production sharing contracts, direct sale–direct purchase deals, joint venture operations and royalty receivables.
The document explain say after reconciliation by Stakeholder Alignment Committee, Presidency approve make most of the balances comot from Federation books. As at December 31, 2024, obligations of $1.42 billion and N5.57 trillion don show as “nil,” with NUPRC confirm say dem don pass correct accounting entries.
Even though FAAC document show reconciliation-based removal, NNPCL maintain say principal royalty payments don already settle or dey in process, leaving only penalty-related amounts for waiver.
CHRICED, however, describe the waiver as fiscally reckless, opaque and unconstitutional. The group say government approve the debt waiver without public scrutiny, National Assembly approval or independent audit, warning say the move dey weaken transparency and accountability for oil and gas sector.
Executive Director of CHRICED, Ibrahim Zikirullahi, for statement in Abuja, warn say the decision set dangerous precedent, especially when Nigeria dey battle serious revenue shortage and financial pressure on states and local governments.
According to am, the waiver effectively cancel about 96 per cent of NNPC dollar debts and 88 per cent of naira obligations, money wey suppose enter Federation Account for sharing among federal, state and local governments.
Zikirullahi also point out say the decision come at time when NUPRC revenue performance dey poor, as the commission don fall short of its 2025 revenue target by over N5.65 trillion cumulatively.
