President Bola Tinubu has authorized the cancellation of a considerable portion of money owed owed by the Nigerian Nationwide Petroleum Firm Restricted (NNPC Ltd) to the Federation Account, wiping off about $1.42 billion and N5.57 trillion.
The approval was documented by the Nigerian Upstream Petroleum Regulatory Fee (NUPRC), titled “Report of October 2025 Income Assortment Introduced on the Federation Account Allocation Committee Assembly Held on 18th November 2025”.
The directive successfully clears the legacy money owed collected as much as December 31, 2024, resolving long-standing disputes between NNPC Ltd and the Federation whereas leaving present liabilities from 2025 operations below ongoing monitoring.
Within the part titled “Restoration from NNPC Ltd Excellent Obligations,” the NUPRC said that the money owed beforehand reported on the October 2025 FAAC assembly stood at $1,480,610,652.58 and N6,332,884,316,237.13 for PSC, DSDP, RA & MCA Liftings and JV & PSC Royalty Receivables respectively.
Nevertheless, following the Presidential directive, about $1,421,727,723 and N5,573,895,769,388.45 of those obligations have been formally cancelled. The fee confirmed that every one accounting entries reflecting the debt cancellation have been carried out within the Federation Account.
In keeping with the NUPRC, the Presidential approval adopted suggestions from the Stakeholder Alignment Committee on the Reconciliation of Indebtedness between NNPC Ltd and the Federation, which reviewed royalty and lifting-related liabilities as much as the top of 2024.
Regardless of the cancellation of legacy money owed, recent obligations collected in 2025 stay excellent.
The NUPRC report reveals statutory obligations from January to October 2025 totaling $56,808,752.32 and N1,021,550,672,578.87 for PSC & MCA Liftings and JV Royalty Receivables, respectively.
Income shortfalls have additionally been a persistent situation. Month-to-month royalty collections fell sharply beneath projections, with November 2025 receipts of N605.26 billion in opposition to a goal of N1.144 trillion—a deficit of N538.92 billion. Cumulatively, as of November 30, 2025, whole authorized income stood at N13.25 trillion, whereas precise collections reached N7.60 trillion, representing a niche of N5.65 trillion. For royalties alone, the shortfall was N5.63 trillion.
The discount in month-to-month collections is notable in comparison with October 2025, when N873.10 billion was collected, highlighting ongoing challenges in income mobilisation regardless of the decision of legacy money owed.
The Presidential cancellation indicators a significant step towards resolving historic disputes between NNPC Ltd and the Federation, successfully eradicating almost 96% of dollar-denominated and 88% of naira-denominated legacy obligations.
Whereas the transfer gives reduction to the Federation Account and clears legacy disputes, the information demonstrates persistent structural challenges in oil and fuel income assortment.
With 2025 obligations nonetheless accruing and royalties persistently falling beneath targets, the necessity for strengthened fiscal administration and sturdy monitoring of NNPC Ltd’s operations stays vital.
NNPC Ltd reported a major surge in income, hitting N5.08 trillion in October 2025, up from N4.27 trillion recorded in September.
The figures are contained within the firm’s Month-to-month Report Abstract for October 2025.
In keeping with the report, NNPC Ltd’s revenue after tax (PAT) rose sharply to N447 billion in October, in comparison with N216 billion in September.
Earlier, NNPCL introduced that it recorded a Revenue After Tax of N5.4 trillion from whole income of N45.1 trillion for the complete yr ended 2024.
