A breakdown provided by the NUPRC showed the specific balances affected by the clearance.

 

President Bola Tinubu has approved the clearance of long-standing balances owed by the Nigerian National Petroleum Company Limited (NNPC Ltd) to the Federation Account as of December 31, 2024, effectively removing legacy debts accumulated up to that date from the government’s books.

 

The approval followed a reconciliation of records between NNPC Ltd and the Federation and was contained in a document prepared by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and presented at the November meeting of the Federation Account Allocation Committee (FAAC).

 

 

The report, titled “Report of October 2025 Revenue Collection Presented at the Federation Account Allocation Committee Meeting Held on November 18, 2025,” was obtained by The PUNCH on Sunday.

 

According to the document, the reconciliation exercise reviewed royalty and lifting-related obligations owed by NNPC Ltd up to December 31, 2024, leading to a presidential directive to clear most of the balances previously recorded against the national oil company.

 

In the section headed “Recovery from NNPC Ltd Outstanding Obligations,” the commission said the debts earlier reported at the October 2025 FAAC meeting stood at “$1,480,610,652.58 and N6,332,884,316,237.13 for PSC, DSDP, RA & MCA Liftings and JV & PSC Royalty Receivables respectively.”

 

It added that following the reconciliation, the Presidency approved the removal of most of those obligations from the Federation Account.

 

The document stated, “However, the commission recently received a Presidential Approval to nil off the outstanding obligations of NNPC Ltd as at 31st December 2024 as submitted by the Stakeholder Alignment Committee on the Reconciliation of Indebtedness between NNPC Ltd and the Federation.”

 

A breakdown provided by the NUPRC showed the specific balances affected by the clearance.

 

It said, “Consequently, out of $1,480,610,652.58 and N6,332,884,316,237.13, the affected outstanding obligations that have been nil off are $1,421,727,723.00 N5,573,895,769,388.45. The commission has passed the appropriate accounting entries as approved.”

 

The document indicates that the approval was based on the recommendations of the Stakeholder Alignment Committee, which was mandated to reconcile disputed figures and align records between NNPC Ltd and the Federation up to the end of 2024.

 

While the legacy balances have now been cleared, the report makes it clear that obligations arising after December 31, 2024 were not affected by the approval.

 

In a separate section titled “NNPC Ltd Outstanding Obligations,” the regulator disclosed that statutory liabilities incurred between January and October 2025 still remained.

 

The NUPRC said these outstanding amounts stood at “$56,808,752.32 and N1,021,550,672,578.87 for PSC & MCA Liftings and JV Royalty Receivables respectively.”

 

It noted that part of the dollar-denominated obligations had been recovered during the period under review, stating: “However, the commission received $55,003,997.00 in the month under review from the outstanding, leaving a balance of $1,804,755.32 and N1,021,550,672,578.87. The amount of $55,003,997.00 received is part of the total collection reported above for sharing by the Federation this month.”

 

The commission confirmed that the presidential directive clearing the pre-2025 balances had already been implemented, noting that “the Commission has passed the appropriate accounting entries as approved.”

 

The development formally draws a line under NNPC Ltd’s reconciled obligations up to December 2024, while leaving newer liabilities subject to ongoing recovery and FAAC scrutiny.