ADC Faults Tinubu Over NNPC Debt Cancellation Calls Action Unconstitutional

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The African Democratic Congress (ADC) has strongly criticised President Bola Ahmed Tinubu over his approval of the cancellation of long-standing debts owed by the Nigerian National Petroleum Company Limited (NNPC Ltd) to the Federation Account, describing the decision as unconstitutional and harmful to subnational governments.

The opposition party warned that the move would significantly reduce funds meant for distribution to states and local governments, thereby worsening their already fragile financial positions.

In a statement issued by its National Publicity Secretary, Mallam Bolaji Abdullahi, the ADC argued that the bulk of the debts—96 per cent of dollar-denominated obligations and 88 per cent of naira-denominated liabilities—were reportedly written off through executive action without approval from the National Assembly.

According to the party, such a decision violates Section 162 of the 1999 Constitution, which governs the management and sharing of revenues paid into the Federation Account.

The ADC further accused President Tinubu of a pattern of constitutional violations and expressed concern over what it described as the National Assembly’s failure to challenge the action.

The party explained that the cancelled obligations included debts arising from production sharing contracts, domestic crude supply commitments, royalty payments, and other legacy balances linked to the oil and gas sector.

Official documents submitted to the Federation Account Allocation Committee (FAAC), according to the ADC, indicate that the presidential directive removed approximately $1.42 billion and ₦5.57 trillion in legacy NNPC debts from the Federation Account following a reconciliation exercise with industry regulators. These liabilities reportedly accumulated up to December 31, 2024.

While the government justified the decision as a reconciliation of accounts, the ADC argued that such a process cannot override constitutional provisions on revenue sharing.

The party maintained that removing the debts from public records effectively shrinks the revenue pool meant to be shared among the federal, state, and local governments.

“It must be clearly stated that no executive action can supersede the Constitution,” the ADC said. “All revenues due to the Federation, including those from the petroleum sector, are required by law to be paid into the Federation Account and shared accordingly.”

The party stressed that the Federation Account is not subject to presidential discretion and that no president has the unilateral authority to cancel revenues owed to other tiers of government without legislative backing.

Describing the situation as alarming, the ADC warned that such actions undermine constitutional governance and called for stronger oversight by the legislature.

The party added that persistent violations of constitutional provisions could warrant serious political consequences, insisting that Nigeria must remain a nation governed by the rule of law.