The African Democratic Congress has accused President Bola Ahmed Tinubu of unlawfully approving the cancellation of legacy debts owed by the Nigerian National Petroleum Company Limited to the Federation Account, warning that the move violates constitutional provisions and deprives states and local governments of revenues legally due to them.

The party made the allegation in a statement issued by its National Publicity Secretary, Mallam Bolaji Abdullahi, where it criticised what it described as an executive action carried out without legislative backing. The ADC also faulted the National Assembly for its silence over what it characterised as a grave breach of the Constitution.

According to the party, documents submitted to the Federation Account Allocation Committee (FAAC) indicate that President Tinubu approved the removal of approximately $1.42 billion and N5.57 trillion in legacy debts owed by NNPC Ltd to the Federation Account following a reconciliation exercise with relevant sector regulators.

The ADC explained that the liabilities in question represent outstanding obligations accumulated up to 31 December 2024. These include debts associated with production sharing contracts, domestic supply obligations, royalty receivables and other unresolved legacy balances within the oil and gas sector.

“The African Democratic Congress (ADC) is deeply alarmed by the action recently taken by President Bola Ahmed Tinubu, approving the cancellation of legacy debts owed by the Nigerian National Petroleum Company Limited (NNPC Ltd) to the Federation Account” Abdullahi said.

The party stated that it was particularly disturbed that the bulk of the debts were written off without parliamentary authorisation, noting that nearly 96 per cent of the dollar-denominated obligations and 88 per cent of the naira-denominated balances were removed through executive directive.

“This write off was done without legislative or parliamentary approval or clear constitutional authority,” the ADC stated.

The party rejected claims that the debt cancellation was justified by a reconciliation process, insisting that such an explanation cannot supersede constitutional provisions governing public revenue and revenue sharing.

“This purported justification of ‘reconciliation’ cannot lawfully override the constitutional requirements for revenue sharing,” the ADC stated.

The party further stressed that the Federation Account enjoys constitutional protection and is not subject to the discretion of the President or the Federal Executive Council.

“Under Section 162 of the 1999 Constitution (as amended), all revenues due to the Federation, including oil sector receipts and related obligations, must be paid into the Federation Account and shared among the Federal, State, and Local Governments,” Abdullahi said.