The African Democratic Congress (ADC) has criticised President Bola Ahmed Tinubu’s approval of the cancellation of legacy debts owed by the Nigerian National Petroleum Company Limited (NNPC Ltd) to the Federation Account.
The party argued that the President lacks the constitutional authority to cancel revenues belonging to all tiers of government, warning that the decision would significantly reduce funds due to state and local councils.
In a statement issued by its National Publicity Secretary, Mallam Bolaji Abdullahi, the ADC said the action amounted to a clear breach of Section 162 of the 1999 Constitution, which regulates revenues paid into and shared from the Federation Account.
According to the party, documents presented to the Federation Account Allocation Committee (FAAC) revealed that the President approved the removal of approximately $1.42 billion and N5.57 trillion in legacy NNPC debts from Federation Account records following what was described as a reconciliation exercise with regulators.
The ADC noted that the debts stemmed from production sharing contracts, domestic crude supply obligations, royalty receivables and other outstanding balances accumulated up to December 31, 2024.
The party expressed particular concern that about 96 per cent of the dollar-denominated legacy obligations and 88 per cent of the naira-denominated balances were written off through an executive directive, without legislative approval or clear constitutional backing.
It warned that such a write-off, allegedly justified by reconciliation, could not lawfully override constitutional provisions on revenue sharing, adding that the action effectively removes longstanding liabilities from public accounts while shrinking the revenue base meant for distribution to states and local governments.
The ADC stressed that no executive action can supersede the Constitution, noting that Section 162 clearly mandates that all revenues accruing to the Federation, including oil-related income and obligations, must be paid into the Federation Account and shared among the federal, state and local governments.
“The Federation Account is not under the control of the President, and no president has the power to cancel constitutionally due revenues. Any action that reduces funds meant for states and local governments without legislative approval is therefore unconstitutional,” the party stated.
The ADC added that it has repeatedly raised concerns over what it described as the President’s continued disregard for constitutional provisions, expressing further alarm at what it termed the National Assembly’s apparent inaction or complicity.
According to the party, such alleged constitutional violations would ordinarily be sufficient to trigger impeachment proceedings, insisting that Nigeria is governed by the rule of law.
“As a nation of laws and not of individuals, no president can override the protections of the Constitution. The Federation Account belongs to all tiers of government and cannot be subjected to the discretion of the Federal Executive,” the statement concluded.
