ABUJA - Nigerian President Bola Tinubu has approved the cancellation ‍of $1.42 billion ‍and 5.57 trillion naira ($3.85 billion) in debts ​owed by state oil firm NNPC Ltd to the government, ⁠the presidency said on Monday. The decision is part of ⁠Tinubu's push to ‌clean up NNPC's books and boost transparency as Africa's top oil producer deals with weak ⁠revenue and soaring debt, ahead of plans to sell stakes in oil and gas assets.

The approval, detailed by oil regulator Nigerian Upstream Petroleum Regulatory Commission (NUPRC), ⁠came at the November federal ​accounts meeting held last week, after a panel urged the reconciling of ‍NNPC's obligations to the government. The write-off covers liabilities through ​December 31, 2024, including production-sharing contracts, domestic supply obligations, repayment deals, modified carryarrangements and joint venture royalties, the presidency said in a statement.

Unpaid obligations from January to October 2025 are still being pursued, while a long-running dispute over an alleged $42.37 billion under-remittance from 2011 to 2017 remains unresolved, with NNPC insisting all revenues were properly accounted for, ⁠the presidency said.

The move aims ‌to increase transparency in Nigeria's oil sector and align fiscal ties between the state energy giant and a ‌government ⁠heavily reliant on crude revenue.

 

($1 = 1,446.5700 naira)