The Resource Centre for Human Rights and Civic Education (CHRICED) has faulted the Federal Government’s decision to waive about $1.42bn and N5.57tn debt owed by the Nigerian National Petroleum Company Limited (NNPC Ltd) to the Federation Account.
The organisation described the move as fiscally reckless, opaque, and unconstitutional.
CHRICED said the debt waiver, which covers $1.42 billion and N5.57 trillion in outstanding obligations, was approved by the Federal Government without public scrutiny, legislative endorsement, or an independent audit.
The development, it said, undermines transparency and accountability in the oil and gas sector.
Executive Director, Ibrahim Zikirullahi, in a statement in Abuja, warned that the decision sets a dangerous precedent, particularly at a time when Nigeria is grappling with severe revenue shortfalls and mounting fiscal pressure on sub-national governments.
According to him, the waiver effectively cancels about 96 per cent of NNPC’s dollar-denominated debts and 88 per cent of its naira obligations, depriving the Federation Account of funds meant for sharing among the federal, state, and local governments.
Zikirullahi noted that the move comes amid alarming revenue underperformance by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which it said is cumulatively behind its 2025 revenue target by over N5.65 trillion.
He added that in November 2025 alone, the commission reportedly recorded a N544.76 billion shortfall, largely driven by gaps in royalty collections.
“Writing off trillions of naira in receivables in the face of such revenue deficits is not only irresponsible, it contradicts the government’s repeated claims of plugging leakages and strengthening public finance management,” the organisation added.
CHRICED also expressed concern that the debt cancellation was carried out without a transparent forensic audit, public debate in the National Assembly, or sanctions for officials allegedly responsible for the accumulation of the liabilities.
The group argued that the action reinforces a long-standing culture of impunity in Nigeria’s oil and gas sector while citing unresolved cases of alleged under-remittances, fuel subsidy fraud, crude oil theft, and controversial swap arrangements.
While questioning NNPC Ltd’s claim of commercial autonomy under the Petroleum Industry Act (PIA), he insisted that forgiving debts owed to the Nigerian people undermines the company’s corporate governance posture.
The organisation warned that the decision sends negative signals to investors, development partners, and credit rating agencies about Nigeria’s fiscal governance framework.
CHRICED also criticised what it described as a double standard, noting that the debt waiver coincides with increased taxes and levies imposed on ordinary Nigerians.
“NNPC Ltd is expected to operate as a commercially driven entity. Writing off trillions owed to its sole shareholder raises serious questions about political insulation and fiscal discipline.
“It is unjust for citizens to bear heavier tax burdens while a major revenue-generating institution is absolved of trillions in obligations,” it said.
The group called on the Federal Government to immediately publish the reconciliation report that justified the waiver and disclose the roles played by all officials involved.
It also urged the National Assembly, particularly its petroleum, finance, and public accounts committees, to investigate the circumstances surrounding the debt cancellation and ensure comprehensive accountability.
CHRICED further demanded an independent forensic audit of NNPC’s financial obligations, protection for whistleblowers, and reforms to the Federation Accounts Allocation Committee (FAAC) to prevent unilateral executive decisions affecting federation revenues.
