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, describing the move as unconstitutional and detrimental to states and local governments.
In a statement issued by its National Publicity Secretary, Mallam Bolaji Abdullahi, the party argued that the President lacks the constitutional authority to cancel revenues that belong to all tiers of government. The ADC warned that the decision would significantly reduce funds due to state and local governments.
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 ₦5.57 trillion in legacy NNPC debts from the Federation Account records, following what was described as a reconciliation exercise with regulators.
The ADC said the debts arose from production sharing contracts, domestic crude supply obligations, royalty receivables and other outstanding balances accumulated up to December 31, 2024.
“The ADC is especially concerned that nearly 96 per cent of the dollar-denominated legacy obligations and 88 per cent of the naira-denominated legacy balances were written off by executive directive,” the statement said.
It added that the write-off was carried out without legislative approval or clear constitutional backing, stressing that reconciliation processes cannot override constitutional provisions on revenue sharing.
“This action effectively removes longstanding liabilities from public accounts, but at the cost of reducing the revenue base that is constitutionally distributable to states and local governments,” the party stated.
Citing Section 162 of the 1999 Constitution (as amended), the ADC maintained that all revenues due to the Federation, including oil-related income, 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 revenues that are constitutionally due. Any action that cuts funds meant for states and local governments without legislative approval is unconstitutional,” the party said.
The ADC further accused President Tinubu of repeatedly acting in ways that violate the Constitution, while expressing concern over what it described as the National Assembly’s apparent cooperation or failure to intervene.
According to the party, such constitutional breaches would ordinarily be sufficient to trigger impeachment proceedings.
“As a nation governed by laws and not individuals, no president can override constitutional provisions. The Federation Account belongs to all tiers of government and cannot be subjected to executive discretion,” the statement concluded.
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