Governors Seek Proof Of NNPC Debt Write-Off By Tinubu
Governors Demand Evidence of Presidential Write-Off
THE Federation Account Allocation Committee (FAAC) has been thrown into fresh scrutiny after Nigerian governors demanded evidence of President Bola Tinubu’s recent approval to write off $1.42 billion and ₦5.5 trillion in legacy debts owed by the Nigerian National Petroleum Company Limited (NNPC Ltd.) to the Federation.
The request comes amid ongoing reconciliation efforts by NNPC to comply with FAAC’s template for reporting alleged $42.37 billion under-remittance to the federation, a matter that has sparked prolonged debate across federal and state authorities.
January FAAC Review Sparks Questions
According to a document from the January 2026 FAAC post-mortem review, governors insisted that federal authorities provide detailed breakdowns of the debt write-offs, including the basis for President Tinubu’s approval. The review also highlighted concerns over the utilisation of the Frontier Exploration Fund (FEF), which channels a statutory 30% of upstream petroleum revenues into underexplored basins.
An ad-hoc FAAC committee mandated physical verification of projects funded with over ₦400 billion earmarked for NNPC under the FEF to ensure transparency and accountability.
NNPC, NUPRC Seek More Time
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which initially disclosed the presidential approval, requested additional time to make the relevant documentation available, citing recent leadership changes.
“The Sub-Committee requested the Presidential Approval, and NUPRC asked for more time because of the change in the Commission’s leadership,” the FAAC document indicated.
NNPC’s reported debt to FAAC stood at $1.48 billion and ₦6.33 trillion, of which $1.42 billion and ₦5.57 trillion were approved for cancellation following recommendations by the Stakeholder Alignment Committee, which reconciled royalty and lifting-related liabilities as of 31 December 2024.
Calls for Transparency and Accountability
Governors and FAAC members are also scrutinising the Frontier Exploration Fund, concerned that disbursed revenues may not have been fully accounted for. The ad-hoc committee’s interim report called for on-site verification of projects financed with the fund, emphasizing the need for robust accountability.
The FEF, established under the Petroleum Industry Act (PIA), channels a portion of NNPC’s profit oil, profit gas, and other upstream revenues to frontier basins like Chad, Sokoto, Anambra, and Benue, aiming to encourage exploration in historically underdeveloped areas.
FAAC’s insistence on proof and verification underscores the tension between state and federal authorities, as governors seek clarity on both the legitimacy of the write-offs and the utilisation of exploration funds.
