2025-12-29 09:00:00
In a report by Punch, a regulatory document presented at FAAC says the Federal Government approved a reconciliation that “wrote off” a large portion of NNPCL’s outstanding legacy obligations to the Federation Account—about $1.42bn and N5.57tn—relating to balances up to end-2024.
BusinessDay frames the move as a balance-sheet reset: disputed debts tied to crude liftings, production-sharing arrangements and JV royalties were removed from the books after reconciliation, while obligations incurred in 2025 were not covered.
The development shifts attention to what happens next—whether remittance, accounting clarity, and timely reconciliation prevent new obligations from piling up.
BusinessDay quotes the document saying, “a Presidential Approval [was received] to nil off the outstanding obligations of NNPC Ltd as at 31st December 2024,” while Nairametrics similarly reports Tinubu approved cancellation of “about $1.42 billion and ₦5.57 trillion” in legacy debts.
Echotitbits take: Clearing contested legacy balances can reduce inter-government tension, but it doesn’t solve forward-looking transparency. The watch item is whether fresh 2025/2026 obligations shrink—month after month.
Source: The Punch — December 29, 2025 (https://punchng.com/fg-writes-off-1-42bn-n5-57tn-nnpc-debt/)
The Punch 2025-12-29
Photo Credit: The Punch