The African Democratic Congress (ADC) has faulted President Bola Tinubu’s decision to approve the write-off of outstanding debts owed by the Nigerian National Petroleum Company Limited (NNPC Ltd) to the Federation Account, warning that the move is unconstitutional and detrimental to state and local governments.
In a statement released on Saturday by its spokesperson, Bolaji Abdullahi, the party said the presidential approval effectively cancelled long-standing financial obligations allegedly owed by NNPC Ltd. These liabilities, according to the ADC, include amounts arising from production-sharing contracts, domestic crude supply commitments, royalty payments and other accumulated balances dating up to December 31, 2024.
The party cited official records submitted to the Federation Account Allocation Committee (FAAC), which indicate that the President authorised the removal of approximately $1.42 billion and ₦5.57 trillion in legacy NNPC debts from the Federation Account following what was termed a reconciliation exercise with relevant regulatory bodies.
The ADC expressed deep concern that about 96 per cent of the dollar-denominated debts and nearly 88 per cent of the naira-based obligations were written off through an executive decision, allegedly without the approval of the National Assembly or any clear constitutional authority.
According to the party, the explanation of “reconciliation” cannot legally supersede constitutional provisions governing the collection and distribution of public revenue. It warned that the action effectively wiped out substantial public liabilities while reducing the pool of funds that should ordinarily be shared among the federal, state and local governments.
Referring to Section 162 of the 1999 Constitution (as amended), the ADC emphasised that all revenues accruing to the Federation — including proceeds from the oil sector — must be paid into the Federation Account for equitable distribution among the three tiers of government. The party maintained that the Federation Account is not subject to the discretion of the executive arm.
“The Federation Account is not subject to executive discretion; no President, including the incumbent, has the unilateral power to cancel revenues constitutionally due to the Federation,” the ADC stated, adding that any action that diminishes funds due to states and local councils without legislative backing is unconstitutional.
The party further accused President Tinubu of serial breaches of the Constitution and raised concerns over what it described as the National Assembly’s “active collusion or deliberate abdication of responsibility,” arguing that such circumstances would ordinarily warrant impeachment proceedings.
Reaffirming its stance, the ADC insisted that Nigeria must operate as “a nation governed by laws, not by individuals,” stressing that the Federation Account belongs collectively to all levels of government and cannot lawfully be subjected to the discretion of the President or the Federal Executive.