President Bola Tinubu’s recent decision to waive legacy obligations owing to the Federation Account by the Nigerian National Petroleum Company Limited, or NNPC Ltd., has been denounced by the African Democratic Congress (ADC).
The party denounced the executive action, which involves removing roughly $1.42 billion (USD) and N5.57 trillion (NGN) in legacy NNPC loans from public records, in a statement released on Saturday by its National Publicity Secretary, Mallam Bolaji Abdullahi.
According to reports, the order handles commitments resulting from production sharing contracts, domestic supply obligations, royalty receivables, and other legacy accounts. It covers outstanding liabilities accumulating up until December 31, 2024.
According to the ADC, over 96% of legacy debts denominated in dollars and 88% of legacy balances denominated in naira were written off by executive decree without the consent of legislators or constitutional authority.
According to the party, the rationale of “reconciliation” is insufficient to supersede the constitutional mandate for revenue sharing.
Executive discretion does not apply to the Federation Account. According to the statement, “No President, including this one, has the unilateral authority to cancel constitutionally due revenues.”
“Any cancellation that lowers revenue owed to local and state governments without legislative authority is unconstitutional.”
The party also voiced worry about what it saw as the National Assembly’s “active collusion or willful surrender” in permitting the action.
The ADC claims that such acts violate the Constitution and may be grounds for impeachment.
“The Federal Republic of Nigeria’s Constitution has been repeatedly violated by President Tinubu.”
Abdullahi underlined, “The Federation Account belongs to all tiers of government and cannot be subject to the discretion of the Federal Executive or the President.”
The ADC has emphasized that Nigeria is a country of laws, not of men, and has urged all pertinent authorities to respect the Constitution and safeguard the interests of States and Local Governments.
