FG’s N7trn NNPC Debt Waiver Sparks Outrage As Rights Group Demands Forensic Audit
At a time when Nigeria is grappling with shrinking revenues and rising economic pressure on citizens, a decision by the Federal Government to waive trillions of naira owed by the Nigerian National Petroleum Company Limited (NNPC Ltd) has ignited sharp criticism from civil society.
The Resource Centre for Human Rights & Civic Education (CHRICED) has condemned the Federal Government’s approval of a debt waiver totalling $1.42 billion and ₦5.57 trillion, describing it as fiscally reckless, opaque and a dangerous precedent that undermines constitutional governance.
In a press statement issued in Abuja on Monday, CHRICED said the write-off, reportedly covering 96 per cent of NNPC’s dollar-denominated debts and 88 per cent of its naira obligations, was carried out without legislative approval, public scrutiny or accountability for those responsible for the liabilities.
The organisation warned that the decision effectively deprives the Federation Account of revenues meant for sharing among federal, state and local governments, coming at a time when the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is already struggling with significant revenue shortfalls.
CHRICED expressed concern that the debt cancellation was executed without a transparent forensic audit, public debate in the National Assembly or sanctions against officials linked to the debts, reinforcing what it described as a long-standing culture of impunity in Nigeria’s oil and gas sector.
Questioning NNPC Ltd’s claim of commercial autonomy under the Petroleum Industry Act, the group argued that forgiving trillions owed to its sole shareholder, the Nigerian people, undermines investor confidence and sends negative signals to development partners and credit rating agencies.
The organisation also decried what it called a double standard, noting that while citizens face increased taxes and levies, a major revenue-generating institution was relieved of massive financial obligations.
CHRICED demanded immediate public disclosure of the reconciliation report that justified the waiver, an independent forensic audit of NNPC’s finances, and a full legislative investigation by relevant National Assembly committees.
It also called for stronger whistleblower protection and reforms to prevent unilateral executive decisions affecting federation revenues.
According to CHRICED, genuine reform in Nigeria’s oil sector can only be achieved through transparency, accountability and justice, warning that continued secrecy and selective accountability will deepen public distrust.
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