The Resource Centre for Human Rights and Civic Education (CHRICED) has strongly criticised the Federal Government's controversial decision to write off massive debts owed by the Nigerian National Petroleum Company Limited (NNPC Ltd). The organisation labelled the move, which involves approximately $1.42 billion and N5.57 trillion, as fiscally irresponsible, lacking in transparency, and a violation of constitutional principles.
A Decision Made in the Shadows
According to CHRICED, this significant debt waiver was approved by the Federal Government without following due process. The group highlighted the complete absence of public scrutiny, legislative approval, or an independent audit before the decision was made. In a statement released in Abuja on 30 December 2025, the Executive Director of CHRICED, Ibrahim Zikirullahi, warned that this action severely undermines transparency and accountability within Nigeria's crucial oil and gas sector.
Zikirullahi pointed out that the waiver effectively cancels about 96% of NNPC's dollar-denominated debts and 88% of its naira obligations. This directly deprives the Federation Account of funds legally meant for distribution among the federal, state, and local governments. He emphasised that this sets a dangerous precedent, especially at a time when Nigeria is facing severe revenue shortfalls and mounting fiscal pressures on state governments.
Amidst Alarming Revenue Shortfalls
The criticism comes against a backdrop of worrying revenue underperformance. CHRICED noted that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is cumulatively behind its 2025 revenue target by over N5.65 trillion. In November 2025 alone, the commission reportedly recorded a staggering N544.76 billion shortfall, largely attributed to 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 stated. CHRICED also expressed deep concern that the debt cancellation was executed without a transparent forensic audit, any meaningful public debate in the National Assembly, or sanctions for officials allegedly responsible for accruing the liabilities.
Reinforcing a Culture of Impunity
The group argued that this action reinforces a long-standing culture of impunity in Nigeria’s oil and gas sector. They cited unresolved cases of alleged under-remittances, fuel subsidy fraud, crude oil theft, and controversial swap arrangements as part of this problematic pattern.
CHRICED also questioned the NNPC Ltd's claim of commercial autonomy under the Petroleum Industry Act (PIA), insisting that forgiving debts owed to the Nigerian people fundamentally undermines the company's corporate governance posture. The organisation warned that this decision sends negative signals to investors, development partners, and credit rating agencies about the state of Nigeria’s fiscal governance.
The group highlighted a glaring double standard: the debt waiver for NNPC coincides with increased taxes and levies imposed on ordinary Nigerians. "It is unjust for citizens to bear heavier tax burdens while a major revenue-generating institution is absolved of trillions in obligations," CHRICED declared.
In response, CHRICED has made several demands:
- The immediate publication of the reconciliation report used to justify the waiver.
- Full disclosure of the roles played by all involved officials.
- An investigation by the National Assembly's relevant committees.
- An independent forensic audit of NNPC’s financial obligations.
- Protection for whistleblowers and reforms to the Federation Accounts Allocation Committee (FAAC) process.
The organisation is calling for comprehensive accountability to prevent such unilateral executive decisions affecting national revenue in the future.
