Nigerian Government Cancels NNPC's $1.42 Billion Legacy Debt

The Nigerian government has approved the cancellation of a substantial legacy debt owed by the Nigerian National Petroleum Corporation (NNPC), amounting to $1.42 billion and N5.57 trillion. The decision, endorsed by President Bola Tinubu, follows a comprehensive reconciliation exercise by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Federal Account Allocation Committee (FAAC).

This move is intended to wipe out longstanding balances linked to crude oil lifting, product sharing contracts, joint ventures, and royalties. However, the cancellation does not cover obligations incurred after 2025.

The NNPC's outstanding obligations have been significantly reduced, providing a cleaner balance sheet for future operations.