President Bola 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, amounting to about $1.42 billion (₦5.57 trillion).
Gatekeepers News reports that the approval was contained in a document issued by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and presented at the November 2025 meeting of the Federation Account Allocation Committee (FAAC).
According to the document, the decision followed the recommendations of the Stakeholder Alignment Committee on the Reconciliation of Indebtedness between NNPC Ltd and the Federation, effectively clearing legacy obligations accumulated up to December 31, 2024.
“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.
It added that the approval followed reconciliation work carried out by the NUPRC, with corresponding accounting adjustments already reflected in the Federation Account.
“While past debts have been largely cleared, newer 2025 obligations (January–October) remain outstanding and are being actively tracked and recovered,” the document noted.
However, a separate and long-standing dispute over an alleged under-remittance of $42.37 billion between 2011 and 2017 remains unresolved. NNPC Ltd has continued to reject the claims, maintaining that all revenues due to the Federation were fully accounted for.
NNPC Reaffirms Commitment to Ogoniland
Meanwhile, the Group Chief Executive Officer of NNPC Ltd, Engr. Bashir Bayo Ojulari, has reaffirmed the company’s commitment to peace, dialogue and responsible energy development in Ogoniland.
Ojulari spoke on Monday in Rivers State during a visit by a Federal Government delegation to Ogoniland, describing the engagement as a symbol of renewed hope and partnership.
“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,” Ojulari said.
“For NNPC Limited, it marks a new beginning — one grounded in partnership, mutual respect, and shared responsibility.”
Acknowledging Ogoniland’s painful history, the NNPC chief said confronting the past was necessary to 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 leadership in fostering trust.
Ojulari stressed that NNPC Ltd’s mission in Ogoniland goes beyond oil and gas extraction, placing people, livelihoods and environmental protection at the core of its operations.
“We believe wholeheartedly that energy development must go hand in hand with environmental protection and community wellbeing,” he said.
Reaffirming the company’s responsibility to host communities, Ojulari announced progress on employment opportunities for Ogoni indigenes.
“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,” he said.
According to him, the beneficiaries are expected to resume duties in January 2026, describing the development as “a meaningful step toward shared progress and opportunity for our communities.”
