Politics

You Can’t Cancel What Isn’t Yours — ADC Mocks Tinubu Over NNPC Debt Write-Off

Published by admin on January 3rd, 2026.

You Can’t Cancel What Isn’t Yours — ADC Mocks Tinubu Over NNPC Debt Write-Off

The African Democratic Congress (ADC) has criticised President Bola Ahmed Tinubu’s decision to approve the cancellation of outstanding debts owed by the Nigerian National Petroleum Company Limited (NNPC Ltd) to the Federation Account, describing the move as unconstitutional and detrimental to subnational governments.

The party warned that the President does not possess the constitutional authority to waive revenues that legally belong to the federal, state, and local governments, noting that the decision would significantly reduce funds available to states and local councils.

In a statement released by its National Publicity Secretary, Mallam Bolaji Abdullahi, the ADC said the action violates Section 162 of the 1999 Constitution, which clearly outlines how revenues paid into the Federation Account must be shared among the three tiers of government.

According to the party, documents presented to the Federation Account Allocation Committee (FAAC) indicate that the President approved the removal of approximately $1.42 billion and ₦5.57 trillion in accumulated NNPC legacy obligations from official Federation Account records following a reconciliation process with regulatory agencies.

The ADC explained that the debts stemmed from production sharing contracts, domestic crude supply arrangements, unpaid royalties, and other outstanding oil-sector obligations accumulated up to December 31, 2024.

The party expressed concern that the bulk of the liabilities—about 96 percent of the dollar-denominated debts and 88 percent of the naira-denominated balances—were written off through executive action without legislative approval or constitutional backing.

It argued that reconciliation exercises cannot lawfully override constitutional provisions governing public revenue, warning that the write-off effectively shrinks the pool of funds constitutionally meant for distribution to states and local governments.

Reiterating its position, the ADC stressed that the Federation Account is not under presidential control and that no executive authority can cancel revenues due to the federation without legislative consent.

The party further criticised what it described as the National Assembly’s silence or apparent complicity, stating that such constitutional breaches would ordinarily warrant serious legislative scrutiny, including impeachment proceedings.

“As a constitutional democracy, Nigeria must be governed by the rule of law,” the ADC said, adding that the Federation Account belongs to all tiers of government and cannot be subjected to executive discretion.