President Bola Ahmed Tinubu has authorized the cancellation of approximately $1.42 billion and ₦5.57 trillion in outstanding debts owed by the Nigerian National Petroleum Company Limited (NNPC Ltd) to the Federation Account.
The decision, confirmed on Monday, 29 December 2025, marks a significant attempt to “clean up” the books of the national oil firm following years of disputed legacy liabilities. The write-off effectively wipes out nearly 96% of the company’s dollar-denominated debt and 88% of its naira obligations accrued up to 31 December 2024.
The approval was revealed in a report by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) presented to the Federation Account Allocation Committee (FAAC).
The debt cancellation covers “legacy obligations” including Production Sharing Contracts (PSC), domestic crude supply, repayment agreements, and unpaid joint venture royalties.
The Presidency acted on recommendations from a Stakeholder Alignment Committee, which was tasked with reconciling the long-standing and often messy financial friction between the NNPC and the Federal Government.
Officials clarified that this “reset” only covers debts up to the end of 2024.7 New obligations accrued between January and October 2025, estimated at $56.8 million and ₦1.02 trillion, remain active on the books and are being pursued for recovery.
Financial analysts suggest this massive balance-sheet cleanup is a strategic precursor to the government’s long-rumored plans to sell stakes in specific oil and gas assets or move toward an Initial Public Offering (IPO) for NNPC Ltd in late 2026.
| Category | Amount Cancelled | % of Total Debt Cleared |
| Dollar Debt | $1.42 Billion | 96% |
| Naira Debt | ₦5.57 Trillion | 88% |
| Legacy Period | Up to Dec 31, 2024 | — |
Despite this major write-off, a separate and far larger shadow remains. The government confirmed that a long-running dispute over an alleged $42.37 billion in under-remittances between 2011 and 2017 remains unresolved.
NNPC Ltd, under the leadership of GCEO Bayo Ojulari, continues to reject these claims, insisting that all revenues from that era were properly accounted for under previous management.
Following a year-end meeting with the President, NNPC GCEO Bayo Ojulari expressed gratitude for the “strategic backing” of the administration. He noted that the company is transitioning toward a “willing-buyer, willing-seller” market that will eventually stabilize prices and benefit consumers.
“This reconciliation is about transparency. We are moving into 2026 with a leaner, more accountable structure that allows us to focus on production rather than legacy disputes.” – Bayo Ojulari, GCEO, NNPC Ltd.
