Mkpoikana Udoma
Port Harcourt — Concerns over fiscal discipline in Nigeria’s energy sector have intensified following the reports that President Bola Ahmed Tinubu approved the write-off of about N8 trillion in debts owed by the Nigerian National Petroleum Company Limited, NNPCL, despite unresolved audit queries running into trillions of naira.
Former Anambra State Governor and Labour Party presidential candidate, Mr. Peter Obi, in a statement titled “Era of Financial Recklessness,” described the reported debt forgiveness as alarming, especially at a time Nigerians are grappling with rising energy costs, inflation and heavier tax burdens.
“Just last week, it was alarmingly reported that the President approved the write-off of N5.57 trillion and $1.42 billion, approximately N8 trillion, in debts owed by NNPC, a company that recently announced profits and claimed it had turned a new leaf,” Obi said.
He noted that the development comes amid ongoing audit investigations into NNPC over an alleged failure to account for N210 trillion, a figure he said exceeds Nigeria’s combined federal budgets between 2023 and 2026.
“For context, the total Federal Government budgets from 2023 to 2026 amount to about N178.56 trillion. Nigerians are still waiting for the outcome of the National Assembly investigation into the missing trillions,” Obi stated.
The former governor questioned the rationale behind the debt write-off, pointing out that NNPC is also under scrutiny over trillions of naira spent on non-functional refineries.
“This is the same agency facing serious audit inquiries and yet the President, who also serves as the Minister in charge, has approved the write-off of about N8 trillion in NNPC debts,” he said.
Obi argued that the debt forgiveness effectively shifts the revenue burden to ordinary Nigerians, who are already reeling from the removal of fuel and electricity subsidies.
“Nigerians, already enduring severe hardships, are now confronted with this unexplained debt forgiveness. The nearly N8 trillion write-off will effectively replace revenue that the government is now seeking through unfair taxation,” he said..
From a business and public finance perspective, Obi stressed that the amount written off could have significantly strengthened key sectors of the economy.
“This almost N8 trillion exceeds the combined 2025 federal budget allocations for education, health and agriculture, which total N7.1 trillion,” he noted, adding that it is also “nearly twice the 2025 federal security budget of N4.9 trillion.”
He maintained that such resources could have been deployed to stimulate productivity, create jobs and reduce poverty, particularly in an economy struggling with unemployment and weak growth.
“The President owes Nigerians clear answers. Citizens deserve honesty, fiscal discipline and governance that protects their interests, not the interests of mismanaged corporations or political elites,” Obi said.
He called for transparency around the reported write-off, warning that unchecked fiscal decisions in the energy sector could further undermine public trust and economic stability.
“This betrayal of the people must be stopped,” Obi concluded.
