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President Bola Tinubu’s recent decision to eliminate legacy debts owing to the Federation Account by the Nigerian National Petroleum Company Limited, or NNPC Ltd., has been denounced by the African Democratic Congress, or ADC.
The party denounced the executive action, which involves removing roughly $1.42 billion (USD) and N5.57 trillion (NGN) in legacy NNPC loans from public records, in a statement released on Saturday by Mallam Bolaji Abdullahi, its National Publicity Secretary.
Production sharing contract obligations, domestic supply commitments, royalty receivables, and other legacy accounts are purportedly covered by the order, which covers outstanding liabilities accumulated up to December 31, 2024.
According to the ADC, 88% of legacy balances denominated in naira and over 96% of legacy commitments denominated in dollars were wiped off by executive order without the consent of the legislature or constitutional authority.
The party claimed that the rationale of “reconciliation” was insufficient to supersede the revenue sharing criteria stipulated in the constitution.
The executive branch has no control over the Federation Account. The statement said, “No President, including this one, has the unilateral authority to cancel constitutionally due revenues.”
“Any cancellation that diminishes revenue owed to local and state governments without legislative authority is unconstitutional.”
The National Assembly’s approval of the action, which the party views as “active collusion or willful surrender,” was another issue raised by the party.
The ADC claims that such behavior violates the Constitution and may be grounds for impeachment.
“President Tinubu has repeatedly broken the Federal Republic of Nigeria’s Constitution.”
“The Federation Account belongs to all levels of government and cannot be subject to the President’s or Federal Executive’s discretion,” Abdullahi stressed.
The ADC has emphasized that Nigeria is a country of laws, not of men, and has urged all pertinent authorities to defend the Constitution and safeguard the interests of states and local governments.
