The African Democratic Congress (ADC) has criticised President Bola Tinubu for his recent approval to cancel legacy debts owed by the Nigerian National Petroleum Company Limited, NNPC Ltd, to the Federation Account.
In a statement released on Saturday by the party’s National Publicity Secretary, Mallam Bolaji Abdullahi, the ADC faulted the executive decision, which involved the removal of about $1.42 billion (USD) and N5.57 trillion (NGN) in outstanding NNPC legacy debts from official financial records.
The directive, which applies to liabilities accumulated up to 31 December 2024, was reported to cover obligations linked to production sharing contracts, domestic supply responsibilities, royalty receivables, and other long-standing financial balances.
According to the ADC, nearly 96 percent of dollar-based legacy liabilities and 88 percent of naira-denominated legacy balances were cancelled through executive action, without any form of legislative approval or constitutional backing.
The party argued that the explanation offered under the guise of “reconciliation” was not sufficient to override constitutional provisions governing revenue allocation.
It stated that, “The Federation Account is not subject to executive discretion. No President, including this one, has the unilateral authority to cancel constitutionally due revenues,” as contained in the statement.
The party further stressed that, “Any cancellation that reduces revenue due to States and Local Governments without legislative authority is unconstitutional.”
The ADC also raised alarm over what it described as “active collusion or willful surrender” on the part of the National Assembly in permitting the decision to stand.
The party warned that actions of this nature weaken the authority of the Constitution and may amount to grounds for impeachment proceedings.
It added that, “President Tinubu has repeatedly violated the Constitution of the Federal Republic of Nigeria.”
Abdullahi emphasised that “The Federation Account belongs to all tiers of government and cannot be subject to the discretion of the Federal Executive or the President,” reiterating that the nation’s revenue framework is constitutionally protected.
The ADC called on relevant state institutions to defend the Constitution and safeguard the interests of States and Local Governments, insisting that Nigeria must continue to operate as a country governed by laws and not by personal authority.
