State governors have called on the federal government to provide official documents confirming President Bola Tinubu’s approval to cancel $1.42 billion and N5.57 trillion owed by the Nigerian National Petroleum Company Limited (NNPC) to the Federation Account.
The demand arose during the January 2026 post‑mortem review of the Federation Account Allocation Committee (FAAC), where governors pressed federal authorities to justify the figures and the basis for the write-off.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which first disclosed the presidential order at an earlier FAAC meeting, said the amounts represented outstanding NNPC obligations reportedly cleared following presidential approval.
NUPRC requested more time to submit supporting documents, citing recent management changes.
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FAAC also gave NNPC additional time to reconcile an alleged $42.37 billion under-remittance spanning several years, warning that unresolved discrepancies could disrupt revenue distribution to all levels of government.
An ad hoc FAAC committee was tasked with physically verifying projects funded through the statutory 30 per cent Frontier Exploration Fund (FEF), inspecting all projects executed with over N400 billion earmarked for NNPC to ensure proper utilisation.
Chaired by the Minister of Finance, FAAC includes the Accountant-General of the Federation, state finance commissioners, and representatives from federal revenue agencies.
Governors stressed that allocations will not be approved until the write-off and disputed remittances are fully documented, highlighting a renewed focus on transparency and accountability in managing the nation’s oil revenues.