ADC Faults Tinubu Over NNPC Debt Cancellation Calls Action Unconstitutional

Spread the love

The African Democratic Congress (ADC) has criticised President Bola Ahmed Tinubu for approving the cancellation of longstanding debts owed by the Nigerian National Petroleum Company Limited (NNPC Ltd) to the Federation Account. The opposition party described the action as unconstitutional and warned it could severely harm states and local governments by reducing funds allocated to them.

According to the ADC, the bulk of the debts—96% of dollar-denominated obligations and 88% of naira-denominated liabilities—were reportedly written off through an executive directive without National Assembly approval. The party argued that this violates Section 162 of the 1999 Constitution, which governs revenue collection and distribution from the Federation Account.

In a statement from its National Publicity Secretary, Mallam Bolaji Abdullahi, the ADC accused President Tinubu of repeatedly disregarding constitutional provisions and expressed concern over the National Assembly’s inaction in challenging the executive move.

The cancelled debts, the party said, relate to production sharing contracts, domestic crude supply obligations, royalty payments, and other legacy balances in the oil and gas sector. ADC highlighted official documents submitted to the Federation Account Allocation Committee (FAAC) indicating that the presidential directive removed approximately $1.42 billion and ₦5.57 trillion in legacy NNPC debts following a reconciliation exercise with industry regulators, covering liabilities accumulated up to December 31, 2024.

While the government defended the decision as a reconciliation of accounts, the ADC argued that such a process cannot override constitutional mandates. Removing these debts from public records, the party stressed, effectively reduces the revenue pool meant for equitable sharing 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, must legally be paid into the Federation Account and shared accordingly.”

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

Describing the situation as alarming, the ADC warned that these actions undermine constitutional governance and called for stronger legislative oversight. The party further cautioned that persistent violations could result in serious political consequences, insisting that Nigeria must remain a nation governed by the rule of law.