THE African Democratic Congress (ADC) has accused President Bola Ahmed Tinubu of unlawfully approving the cancellation of legacy debts owed by the Nigerian National Petroleum Company Limited (NNPC Ltd) to the Federation Account, warning that the decision violates the Constitution and deprives states and local governments of revenue due to them.
The party made the allegation in a statement by Mallam Bolaji Abdullahi, National Publicity Secretary of the ADC, in which it faulted what it described as an executive action taken without legislative approval and criticised the National Assembly for remaining silent in the face of what it called a serious constitutional breach.
According to the ADC, documents presented to the Federation Account Allocation Committee (FAAC) show that President Tinubu approved the removal of approximately $1.42 billion and N5.57 trillion in legacy NNPC debts from the Federation Account after a reconciliation exercise with sector regulators.
The liabilities were said to cover outstanding obligations accumulated up to 31 December 2024, including those linked to production sharing contracts, domestic supply obligations, royalty receivables and other legacy balances.
“The African Democratic Congress (ADC) is deeply alarmed by the action recently taken by President Bola Ahmed Tinubu, approving the cancellation of legacy debts owed by the Nigerian National Petroleum Company Limited (NNPC Ltd) to the Federation Account” Abdullahi said.
The party said it was particularly concerned that most of the debts were written off without parliamentary approval, noting that nearly 96 per cent of the dollar-denominated obligations and 88 per cent of the naira-denominated balances were removed by executive directive.
“This write off was done without legislative or parliamentary approval or clear constitutional authority,” the ADC stated.
It rejected the explanation that the cancellation followed a reconciliation process, arguing that such justification cannot override constitutional provisions governing public revenue.
“This purported justification of ‘reconciliation’ cannot lawfully override the constitutional requirements for revenue sharing,” the ADC stated.
It stressed that the Federation Account is constitutionally protected and not subject to the discretion of the President or the Federal Executive.
“Under Section 162 of the 1999 Constitution (as amended), all revenues due to the Federation, including oil sector receipts and related obligations, must be paid into the Federation Account and shared among the Federal, State, and Local Governments,” Abdullahi said.