The African Democratic Congress (ADC) has launched a strong condemnation of President Bola Ahmed Tinubu's recent approval to cancel massive legacy debts owed by the Nigerian National Petroleum Company Limited (NNPCL) to the Federation Account. The opposition party labels the move a serious constitutional breach that will financially cripple states and local governments across Nigeria.
A Presidential Directive Sparks Constitutional Crisis
In a statement issued on 3 January 2026 by its National Publicity Secretary, Mallam Bolaji Abdullahi, the ADC revealed the staggering scale of the debt cancellation. The party stated that President Tinubu, via an executive directive, approved the removal of approximately $1.42 billion in dollar-denominated debts and N5.57 trillion in naira-denominated debts from the Federation Account books.
This action followed a reconciliation of records with regulators and covers outstanding liabilities accumulated by the NNPC up until 31 December 2024. The debts included balances from production sharing contracts, domestic crude supply obligations, royalty receivables, and other legacy issues.
Violation of the 1999 Constitution
The ADC's core argument hinges on a direct violation of Section 162 of the 1999 Constitution (as amended). The party stressed that the executive branch lacks the unilateral authority to cancel revenues constitutionally due to the federation.
"The Federation Account is not subject to executive discretion," the ADC declared. "No president, including this one, has the unilateral authority to cancel constitutionally due revenues, and any cancellation that reduces revenue due to the states and local governments without legislative authority is unconstitutional."
The party highlighted that a shocking 96% of the dollar debts and 88% of the naira debts were written off without seeking or obtaining approval from the National Assembly. This, they argue, bypasses the mandatory legislative oversight for revenue sharing and sets a dangerous precedent.
Consequences and Accusations of Collusion
The immediate consequence of this debt write-off, according to the ADC, is a significant reduction in the distributable revenue pool for the three tiers of government. States and Local Government Areas (LGAs), which are already grappling with financial challenges, stand to lose a substantial portion of their monthly allocations from the Federation Account Allocation Committee (FAAC).
Furthermore, the ADC accused President Tinubu of repeatedly violating the Constitution and expressed deep concern over the silence of the National Assembly. The party's statement questioned whether this was "active collusion or wilful surrender" by the legislature.
"Ordinarily, these egregious assaults on the Constitution should be sufficient grounds to commence impeachment proceedings," the ADC stated, reinforcing the severity of their allegations. They concluded by affirming the principle that Nigeria is a nation of laws, where the Federation Account belongs to all tiers of government and cannot be subject to the discretion of the President alone.
