ADC Condemns Tinubu’s NNPC Legacy Debt Cancellation, Calls It Unconstitutional
The African Democratic Congress (ADC) has raised strong objections to President Bola Ahmed Tinubu’s recent approval of the cancellation of legacy debts owed by the Nigerian National Petroleum Company Limited (NNPC Ltd) to the Federation Account.
The party argued that the President lacks constitutional authority to erase revenues belonging to all tiers of government, warning that the move could substantially reduce allocations due to states and local councils.
In a statement obtained by PulseNets, the ADC’s National Publicity Secretary, Mallam Bolaji Abdullahi, described the action as a “direct breach of Section 162 of the 1999 Constitution,” which governs revenues paid into and shared from the Federation Account.
PulseNets learnt that documents presented to the Federation Account Allocation Committee (FAAC) indicated the President authorised the removal of roughly $1.42 billion and N5.57 trillion in legacy NNPC debts from Federation Account records following a reconciliation exercise with regulatory agencies.
The ADC noted that the debts originated from production sharing contracts, domestic crude supply obligations, royalty receivables, and other outstanding balances accumulated up to December 31, 2024.
The party highlighted concerns that approximately 96 per cent of the dollar-denominated legacy obligations and 88 per cent of the naira-denominated balances were written off through an executive directive, without legislative approval or explicit constitutional backing.
“It is alarming that a reconciliation exercise has been used to justify the write-off of debts that are constitutionally owed to all tiers of government,” Abdullahi told PulseNets. “This action effectively erases longstanding liabilities from public accounts and shrinks the revenue base meant for states and local governments.”
The ADC stressed that no executive action can override the Constitution, pointing out that Section 162 clearly mandates that all revenues accruing to the Federation, including oil-related earnings and obligations, must be paid into the Federation Account and equitably shared among the federal, state, and local governments.
“The Federation Account is not under the control of the President, and no president has the power to cancel constitutionally due revenues,” the statement, spoken to PulseNets, added. “Any action that diminishes funds intended for states and local councils without legislative approval is therefore unconstitutional.”
PulseNets also learnt that the ADC has repeatedly flagged what it described as the President’s disregard for constitutional provisions, expressing further concern over the National Assembly’s apparent inaction or perceived complicity.
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The party maintained that such violations, if verified, would ordinarily warrant impeachment proceedings, insisting that Nigeria remains a nation governed by the rule of law.
“As a nation of laws and not of individuals, no president can override the Constitution’s protections. The Federation Account belongs to all tiers of government and cannot be subjected to the discretion of the Federal Executive,” Abdullahi told PulseNets in conclusion.
