Nigerian President Bola Tinubu has approved the cancellation of $1.42 billion and 5.57 trillion naira ($3.85 billion) in debts owed by state oil firm NNPC Ltd to the government, the presidency said on Monday.
The decision is part of Tinubu's push to clean up NNPC's books and boost transparency as Africa's top oil producer deals with weak revenue and soaring debt, ahead of plans to sell stakes in oil and gas assets.
The approval, detailed by oil regulator Nigerian Upstream Petroleum Regulatory Commission (NUPRC), came at the November federal accounts meeting held last week, after a panel urged the reconciling of NNPC's obligations to the government.
The write-off covers liabilities through December 31, 2024, including production-sharing contracts, domestic supply obligations, repayment deals, modified carry arrangements and joint venture royalties, the presidency said in a statement.
Unpaid obligations from January to October 2025 are still being pursued, while a long-running dispute over an alleged $42.37 billion under-remittance from 2011 to 2017 remains unresolved, with NNPC insisting all revenues were properly accounted for, the presidency said.
The move aims to increase transparency in Nigeria's oil sector and align fiscal ties between the state energy giant and a government heavily reliant on crude revenue.
($1 = 1,446.5700 naira)
(Reuters - Additonal reporting by Elisha Bala-Gbogbo in Abuja; Editing by Kirsten Donovan)