ADC Faults Tinubu’s Approval of NNPC Debt Cancellation, Calls Move Unconstitutional

ADC has faulted Tinubu’s approval of NNPC debt cancellation and called move unconstitutional.

 

NewsOnline Nigeria reports that the African Democratic Congress (ADC) has criticised President Bola Ahmed Tinubu’s approval of the cancellation of legacy debts owed by the Nigerian National Petroleum Company Limited (NNPC Ltd) to the Federation Account, describing the action as unconstitutional and detrimental to states and local governments.

 

The party warned that the decision would significantly reduce funds meant for subnational governments, insisting that the President lacks the constitutional authority to cancel revenues that belong to all tiers of government.

 

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In a statement issued by its National Publicity Secretary, Mallam Bolaji Abdullahi, the ADC said the move violated Section 162 of the 1999 Constitution, which governs revenues paid into and shared from the Federation Account.

 

According to the party, documents presented to the Federation Account Allocation Committee (FAAC) revealed that President Tinubu approved the removal of approximately $1.42 billion and N5.57 trillion in legacy NNPC debts from Federation Account records following what was described as a reconciliation exercise with regulators.

 

The ADC explained that the debts arose from production sharing contracts, domestic crude supply obligations, royalty receivables, and other outstanding balances accumulated up to December 31, 2024.

 

The party expressed concern that nearly 96 per cent of the dollar-denominated legacy obligations and about 88 per cent of the naira-denominated balances were written off through executive action.

 

“This write-off was carried out without legislative or parliamentary approval and without clear constitutional authority. The justification of reconciliation cannot lawfully override the constitutional requirements for revenue sharing,” the statement said.

 

The ADC argued that while the action removes longstanding liabilities from public accounts, it does so at the expense of revenues constitutionally meant to be distributed to states and local governments.

 

Reiterating its position, the party stressed that no executive decision can supersede the Constitution, noting that Section 162 clearly mandates that all revenues due to the Federation, including oil-related income, must be paid into the Federation Account and shared among the three tiers of government.

 

“The Federation Account is not under the control of the President, and no President has the power to cancel revenues that are constitutionally due. Any action that reduces funds meant for states and local governments without legislative approval is unconstitutional,” the ADC added.

 

The party said it has consistently raised concerns about what it described as repeated constitutional violations by the Tinubu administration, adding that the apparent failure or cooperation of the National Assembly in such matters was troubling.

 

According to the ADC, actions of this magnitude would ordinarily warrant impeachment proceedings in a constitutional democracy.

 

“As a nation governed by the rule of law, and not by individual discretion, no President can override what the Constitution protects. The Federation Account belongs to all tiers of government and cannot be subjected to the will of the Federal Executive,” the statement concluded.