President Bola Ahmed Tinubu has approved the cancellation of a significant portion of the Nigerian National Petroleum Company Limited (NNPC Ltd)’s outstanding debts owed to the Federation Account.
The decision was detailed in a document by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and presented during the November 2025 Federation Account Allocation Committee (FAAC) meeting. This approval was made despite the long-running battle over the company’s Under-remittance totalling $42.37bn between 2011 and 2017.
According to the document, this action follows the recommendations of the Stakeholder Alignment Committee on the Reconciliation of Indebtedness between NNPC Ltd and the Federation, effectively eliminating approximately $1.42 billion in legacy obligations.
“The write-off covers legacy obligations up to December 31, 2024, including Production Sharing Contracts (PSC), Domestic Supply obligations, repayment agreements, modified carry arrangements, and joint venture/PSC royalty receivables,” the document stated.
“The decision followed recommendations from the Stakeholder Alignment Committee and reconciliation efforts by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), with corresponding accounting adjustments already made in the Federation Account.
“While past debts have been largely cleared, newer 2025 obligations (January–October) remain outstanding and are being actively tracked/recovered.”
Meanwhile, a separate, ongoing dispute concerning alleged under-remittance of $42.37bn from 2011 to 2017 remains unresolved, with NNPC Ltd rejecting the claims and maintaining that all revenues were properly accounted for.
In related news, NNPCL Group Chief Executive Officer Engr. Bashir Bayo Ojulari recently reaffirmed the company’s commitment to peace, dialogue, and responsible energy development in Ogoniland, characterizing the Federal Government’s renewed engagement as a demonstration of hope and a new beginning founded on partnership and understanding.
Ojulari made this disclosure during a Federral Government delegation’s visit to Ogoniland in Rivers State on Monday.
“This visit is a demonstration of hope. It affirms the commitment of the Federal Government, under the leadership of President Bola Ahmed Tinubu, to peace, dialogue, and rebuilding trust. For NNPC Limited, it marks a new beginning—one grounded in partnership, mutual respect, and shared responsibility,” Ojulari stated.
While acknowledging the challenging history of Ogoniland, the GCEO emphasized that recognizing the past is essential for building a different future.
He commended the Presidential Committee on Ogoni Re-entry, led by Professor Don Baridam, and the National Security Adviser, Mallam Nuhu Ribadu, for their steady leadership in fostering confidence and trust.
According to the Group CEO, NNPC Ltd.’s mission in Ogoniland extends beyond resource extraction; it centers on prioritizing people, livelihoods, and the environment in its operations. “We believe wholeheartedly that energy development must go hand in hand with environmental protection and community wellbeing,” he said.
Reaffirming NNPC Ltd.’s responsibility to host communities, the Group CEO offered assurances regarding welfare, security, and opportunity.
“I am delighted to share that one of our commitments to the people of Ogoni is becoming a reality. The process for the full-time employment of 30 Ogoni indigenes has reached its final stage, with employment offers already issued.
“We look forward with pride to welcoming them as they begin work in January 2026, marking a meaningful step toward shared progress and opportunity for our communities,” he stated.
