The ADC coalition described the action as unconstitutional and harmful to subnational governments.
The African Democratic Congress (ADC) has raised the alarm over President Bola Tinubu’s approval of the cancellation of legacy debts owed by the Nigerian National Petroleum Company Limited (NNPC Ltd) to the Federation Account.
The ADC coalition described the action as unconstitutional and harmful to subnational governments.
In a statement issued on Saturday by its spokesperson, Bolaji Abdullahi, the party said the presidential approval covered the cancellation of long-standing liabilities reportedly owed by NNPC Ltd, including debts arising from production sharing contracts, domestic supply obligations, royalty receivables and other legacy balances accumulated up to December 31, 2024.
According to official documents presented to the Federation Account Allocation Committee (FAAC), the President authorised the removal of about $1.42 billion and N5.57 trillion in legacy NNPC debts from the Federation Account following what was described as a reconciliation of records with relevant regulators.
The ADC expressed particular concern that nearly 96 per cent of the dollar-denominated obligations and about 88 per cent of the naira-denominated balances were written off by executive directive, allegedly without legislative approval or clear constitutional backing.
The party argued that the justification of “reconciliation” could not lawfully override constitutional provisions governing revenue collection and sharing, warning that the move effectively erased long-standing public liabilities while shrinking the revenue pool constitutionally distributable to states and local governments.
Citing Section 162 of the 1999 Constitution (as amended), the ADC stressed that all revenues due to the Federation, including oil-sector receipts and related obligations, must be paid into the Federation Account for distribution among the federal, state and local governments.
It insisted that the Federation Account is not subject to executive discretion.
“The Federation Account is not subject to executive discretion; no President, including this one, has the unilateral authority to cancel constitutionally due revenues,” the party said, adding that any cancellation that reduces revenue due to states and local governments without legislative authority is unconstitutional.
The ADC further accused President Tinubu of repeated constitutional violations and expressed concern over what it described as “active collusion or wilful surrender” by the National Assembly, noting that such actions should ordinarily be sufficient grounds for impeachment proceedings.
Reiterating its position, the party said Nigeria must remain “a nation of laws, and not of men,” emphasising that the Federation Account belongs to all tiers of government and cannot be subjected to the discretion of the Federal Executive or the President.