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The African Democratic Congress (ADC) has denounced President Bola Tinubu's recent decision to erase legacy debts owed by the Nigerian National Petroleum Company Limited (NNPC Ltd) to the Federation Account.
In a statement released by its National Publicity Secretary, Mallam Bolaji Abdullahi, on Saturday, the party criticized this executive action, which involved removing approximately $1.42 billion (USD) and N5.57 trillion (NGN) in legacy NNPC debts from public records.
This directive, which pertains to outstanding liabilities accumulated up to December 31, 2024, reportedly addresses obligations arising from production sharing contracts, domestic supply commitments, royalty receivables, and other legacy balances.
The ADC asserted that nearly 96 percent of dollar-denominated legacy obligations and 88 percent of naira-denominated legacy balances were eliminated by executive decree, without legislative approval or constitutional authority.
The party deemed the rationale of "reconciliation" inadequate to override constitutional mandates for revenue distribution.
“The Federation Account is not subject to executive discretion. No President, including the current one, possesses the unilateral authority to cancel revenues that are constitutionally owed,” the statement declared.
“Any cancellation that diminishes revenue owed to States and Local Governments without legislative consent is unconstitutional.”
The party also expressed apprehension regarding what it views as “active collusion or willful surrender” by the National Assembly in permitting this action.
According to the ADC, such measures undermine the Constitution and could serve as grounds for impeachment proceedings.
“President Tinubu has consistently violated the Constitution of the Federal Republic of Nigeria.”
“The Federation Account belongs to all levels of government and cannot be subject to the discretion of the Federal Executive or the President,” Abdullahi emphasized.
The ADC has urged all relevant authorities to uphold the Constitution and safeguard the interests of States and Local Governments, reinforcing that Nigeria is a nation governed by laws, not by individuals.
Frequently Asked Questions
What is the ADC's position on President Tinubu's debt cancellation?
The ADC strongly condemns President Tinubu's decision to cancel legacy debts owed by the NNPC Ltd, arguing that it undermines constitutional mandates regarding revenue sharing.
Why does the ADC believe the debt cancellation is unconstitutional?
The ADC claims that the cancellation of revenues owed to States and Local Governments without legislative approval violates constitutional provisions, as the Federation Account is not subject to executive discretion.
What actions does the ADC propose in response to this situation?
The ADC calls on all relevant authorities to uphold the Constitution and protect the interests of States and Local Governments, emphasizing that Nigeria is a nation of laws.
Eze Chidiebere Paul
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