By Victor Itodo Abuh
THE RESOURCE Centre for Human Rights and Civic Education (CHRICED) has condemned the Federal Government’s decision to waive a debt of $1.42 billion and ₦5.57 trillion owed by the Nigerian National Petroleum Company Limited (NNPC Ltd) to the Federation Account, describing the move as “fiscal recklessness” and a serious blow to transparency and constitutional governance.
In a statement issued on Monday in Abuja, CHRICED said the approval of the debt write-off, estimated at about ₦7 trillion, was carried out “through executive fiat, without public scrutiny, legislative approval, or accountability for those responsible.” The organisation warned that the action represents “a grave assault on transparency, fiscal discipline and constitutional governance.”
According to CHRICED, the waiver cancels 96 per cent of NNPC’s dollar-denominated debts and 88 per cent of its naira obligations, a move it said would significantly deprive the Federation Account of revenues meant for sharing among the federal, state and local governments. The group stressed that the decision comes at a particularly troubling time, noting that “the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is underperforming its 2025 revenue target by over N5.65 trillion cumulatively.”
It added that in November 2025 alone, the commission recorded “a ₦544.76 billion revenue shortfall, including a N538.92 billion gap in royalty collections,” describing the debt write-off in the face of such deficits as “not only irresponsible” but one that “contradicts the government’s repeated claims of plugging leakages and strengthening public finance management.”
CHRICED expressed deep concern over what it described as the absence of accountability surrounding the decision, stating that the debt cancellation was executed “without a transparent, independent forensic audit, without public debate in the National Assembly, and without identifying or sanctioning officials responsible for the liabilities.” According to the group, this reflects “a long-standing pattern in Nigeria’s oil sector where institutions are shielded while individuals who perpetrate or enable corruption escape justice.”
The organisation pointed to unresolved controversies in the oil and gas sector as evidence of what it called a system defined by impunity. It cited cases ranging from allegations of diverted funds meant for refinery construction to regulatory disputes and the unresolved fuel subsidy fraud. CHRICED said these cases “illustrate a system where corruption is recycled, whistleblowers are ignored, and accountability is optional.”
Raising concerns about NNPC Ltd’s status under the Petroleum Industry Act, CHRICED said the decision to forgive trillions of naira owed to the Federation Account undermines the company’s claim of commercial autonomy. “Forgiving trillions of naira owed to its sole shareholder—the Nigerian people—exposes the company’s continued political insulation,” the statement said, adding that the move sends “a troubling message to investors, development partners and credit rating agencies.”
The organisation also criticised what it described as a double standard in fiscal policy, noting that the debt waiver comes at a time when Nigerians are facing increased taxes and levies. It said it was “unjust and unacceptable” that “ordinary citizens are compelled to pay more, while a major revenue-generating institution like NNPC Ltd is absolved of trillions in obligations.”
In response, CHRICED called for urgent action, including “immediate public disclosure of the full reconciliation report and justification for the debt waiver,” as well as “an independent forensic audit of NNPC’s historical and current financial obligations.” It also urged the National Assembly to intervene and investigate the circumstances surrounding the cancellation, insisting on “comprehensive accountability that includes civil servants, regulators and private sector collaborators.”
The statement, signed by CHRICED’s Executive Director, Comrade Ibrahim M. Zikirullahi, concluded that “the government cannot demand fiscal discipline from citizens while secretly forgiving trillions owed by powerful institutions,” warning that such decisions would only “deepen public distrust and reinforce the perception that Nigeria operates a system where impunity is rewarded and accountability is optional.”
