NNPC cancels N4.01tn subsidy and other government debts
The Nigerian National Petroleum Company Limited (NNPCL) has written off N4.01tn in subsidy arrears and other debts owed by the Federal Government after a reconciliation of accounts. Documents submitted to the Federal Allocation Accounts Committee (FAAC) at its October and November 2025 meetings detail the agreement and approvals for the debt cancellation. The move follows a presidential directive and recommendations from the Stakeholder Alignment Committee. The write-off aims to clarify NNPCL’s financial position and improve transparency around oil revenue remittances.
TLDR
- NNPCL cancelled N4.01tn in subsidy arrears and other debts owed by the Federal Government after account reconciliation at the October and November 2025 FAAC meetings.
- A presidential directive approved the removal of most of the outstanding balances from the Federation’s books, wiping off about $1.42bn and N5.57tn after reconciliation.
- As of the October 2025 FAAC meeting, NNPCL’s payables to the Federation stood at N4.72tn, dropping to N706.32bn by the November 2025 meeting, reflecting the debt cancellation.
- The document indicates the approval followed recommendations from the Stakeholder Alignment Committee, reviewing liabilities up to December 31, 2024.
- Despite the write-off, new debts accrued in 2025 remain, with statutory obligations between January and October 2025 still standing at $56.8m and N1.02tn.
