ADC critises Tinubu’s decision to cancel NNPC debt, says executive cannot override constitution
The African Democratic Congress (ADC) has faulted President Bola Tinubu’s approval of the cancellation of legacy debts owed by the Nigerian National Petroleum Company Limited (NNPC Ltd) to the Federation Account, insisting that such an action is unconstitutional and beyond presidential powers.
In a statement issued on Saturday by its National Publicity Secretary, Bolaji Abdullahi, the ADC said it was “deeply alarmed” by the decision, warning that executive action cannot override clear constitutional provisions on revenue sharing among the three tiers of government.
According to official documents presented to the Federation Account Allocation Committee (FAAC), President Tinubu approved the removal of approximately $1.42 billion and ₦5.57 trillion in legacy NNPC debts from the Federation Account following a reconciliation exercise with industry regulators. The debts reportedly arose from production sharing contracts, domestic supply obligations, royalty receivables, and other outstanding balances accumulated up to 31 December 2024.
The ADC noted with concern that about 96 per cent of the dollar-denominated obligations and 88 per cent of the naira-denominated balances were written off through executive directive, without legislative approval.
“The purported justification of ‘reconciliation’ cannot lawfully override the constitutional requirements for revenue sharing,” the party said, arguing that the write-off effectively removes longstanding public liabilities at the expense of revenues constitutionally due to states and local governments.
Citing Section 162 of the 1999 Constitution (as amended), the ADC stressed that all revenues due to the federation — including oil-sector receipts — must be paid into the Federation Account and shared accordingly.
“The Federation Account is not subject to executive discretion. No president, including this one, has the unilateral authority to cancel constitutionally due revenues, and any cancellation that reduces revenue due to the States and Local Governments without legislative authority is unconstitutional,” the statement read.
