• Tinubu approves partial write-off of NNPC debts to Nigerian government
• Decision cancels $1.42 billion and 5.57 trillion naira obligations
• Move may help clarify NNPC accounts amid oil sector challenges

Nigerian President Bola Tinubu has approved the write-off of a portion of the debt owed by the state-owned Nigerian National Petroleum Company (NNPC Ltd), the presidency said in a statement on Monday, December 29.

President Tinubu Approves Debt Write-Off for NNPC - $1.42bn & N5.57tn Cancelled.@asovilladigital pic.twitter.com/83BJC5UGpf

— Presidency Nigeria (@NGRPresident) December 29, 2025

The decision cancels $1.42 billion in financial obligations inherited from previous fiscal years, the presidency said. It also cancels 5.57 trillion naira ($3.85 billion) owed by NNPC Ltd to the Nigerian government, according to the statement and data seen by Reuters.

The amounts cover financial obligations accrued up to the end of 2024, the statement said. It specified these include adjustments related to Production Sharing Contracts (PSC), oil royalties, and various domestic reconciliation mechanisms. The write-off does not apply to obligations after 2024, which remain due, the presidency said.

The decision comes as Nigeria faces structural weaknesses in its oil sector. The sector accounted for about 3.8% of gross domestic product in the third quarter of 2025, according to data from the National Bureau of Statistics (NBS). Despite being Africa's top crude producer, with output estimated at 1.64 million barrels per day in Q3 2025 compared to 1.47 million a year earlier, the country still faces constraints including energy-sector investment and financing.

NNPC plays a central role in collecting state oil revenue. Its financial relationship with the Nigerian treasury has long been marked by complex reconciliation mechanisms and limited accounting transparency, difficulties regularly highlighted by auditing bodies and some international partners. The presidency did not specify the objectives of the debt cancellation. Several local media outlets have reported it could help clarify the accounts of the national company, which is seeking to divest some oil assets.

Abdel-Latif Boureima