The Resource Centre for Human Rights and Civic Education (CHRICED) has faulted the Federal Government’s approval of a massive debt waiver for the Nigerian National Petroleum Company Limited (NNPC Ltd), warning that the move undermines fiscal discipline, transparency and constitutional governance.
President Bola Ahmed Tinubu had on Monday approved the cancellation of debts amounting to $1.42 billion and ₦5.57 trillion owed by NNPC Ltd to the Federation Account.
Reacting in a statement on Tuesday, CHRICED’s Executive Director, Comrade Dr Ibrahim M. Zikirullahi, described the decision as unprecedented and dangerous, particularly at a time of acute revenue shortfalls.
According to him, the write-off—carried out without public scrutiny, legislative approval or accountability for those responsible—constitutes a grave assault on transparency and public finance management.
Zikirullahi said the cancellation of 96 per cent of NNPC’s dollar-denominated debts and 88 per cent of its naira obligations effectively deprives the Federation Account of revenues meant to be shared by the federal, state and local governments.
He noted that the waiver comes amid alarming revenue deficits, with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) reportedly underperforming its 2025 revenue target by over ₦5.65 trillion. In November 2025 alone, he said, the commission recorded a ₦544.76 billion shortfall, including a ₦538.92 billion gap in royalty collections.
“Writing off trillions of naira in receivables in the midst of such deficits is not only irresponsible, it directly contradicts government claims of plugging leakages and strengthening fiscal governance,” Zikirullahi said.
He further argued that the oil and gas sector remains plagued by unresolved scandals, citing the recent declaration of a former petroleum minister, Timipre Sylva, as wanted over the alleged diversion of $14.8 million meant for refinery construction, as well as unresolved allegations of regulatory abuse and subsidy fraud running into trillions of naira.
According to CHRICED, the Petroleum Industry Act (PIA) requires NNPC Ltd to operate as a commercially driven entity under strict corporate governance standards. Forgiving trillions of naira owed to its sole shareholder—the Nigerian people—he said, undermines that mandate and reinforces perceptions of political insulation.
“This decision sends a troubling signal to investors, development partners and credit rating agencies that Nigeria’s fiscal governance remains discretionary and vulnerable to political interference,” the organisation warned.
CHRICED called for the immediate public disclosure of the reconciliation report and justification for the debt waiver, a comprehensive forensic audit of NNPC’s past and present financial obligations, and urgent intervention by the National Assembly to ensure accountability.
