Financial Reset in Abuja: Nigeria Clears $1.42 Billion in NNPC Debt Amid Transparency Concerns

Under the directives of President Bola Tinubu, the Nigerian Federal Government has cleared approximately 96% of the long-standing dollar debts owed by the Nigerian National Petroleum Company (NNPC), totaling $1.42 billion. The move also wiped out 88% of its obligations in local currency (Naira). This strategic "debt write-off" follows a rigorous financial audit of royalties and oil production liabilities through the end of 2024, aiming to stabilize the state-owned oil giant's balance sheet.

However, this financial relief comes as new debts accumulated in 2025 remain a concern, alongside a heated dispute with Periscope Consulting over $42.37 billion in allegedly unremitted oil revenues from 2011–2017. While the World Bank has warned that poor remittance practices undermine national fiscal stability, NNPC's new CEO, Bayo Ojulari, has pledged to implement a new era of accountability. Observers view this debt clearance as a crucial "reset," though systemic challenges in managing Nigeria’s oil wealth persist.