The Resource Centre for Human Rights & Civic Education (CHRICED) has condemned the Federal Government’s approval of a massive debt waiver granted to the Nigerian National Petroleum Company Limited (NNPC Ltd), describing it as fiscal recklessness and a threat to transparency.
In a statement signed by Executive Director, Comrade Dr. Ibrahim M. Zikirullahi, CHRICED said the waiver — covering $1.42 billion and N5.57 trillion owed by NNPC to the Federation Account — was carried out through executive action without public scrutiny, legislative approval, or accountability.
According to the group, the decision effectively cancels about 96% of NNPC’s dollar-denominated debts and 88% of its naira obligations, depriving federal, state and local governments of revenues meant for statutory sharing.
CHRICED noted that the move comes at a time of deep revenue crisis, with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) reportedly underperforming its 2025 revenue target by over N5.65 trillion, including a N544.76 billion shortfall in November alone.
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“It is irresponsible to write off trillions of naira in receivables amid worsening revenue deficits, especially when government claims to be plugging leakages,” the statement said.
The organisation also faulted the process, stressing that the debt cancellation was done without an independent forensic audit, National Assembly debate, or sanctions for officials responsible for the liabilities. It warned that the action reinforces a culture of impunity in Nigeria’s oil and gas sector.
CHRICED further argued that forgiving such debts contradicts the Petroleum Industry Act’s vision of NNPC Ltd as a commercially driven entity and sends a negative signal to investors and development partners about Nigeria’s fiscal governance.
Describing the move as a double standard, the group said it was unjust for citizens to face increasing taxes while a major revenue-generating institution is absolved of trillions of naira in obligations.
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CHRICED called for immediate public disclosure of the debt reconciliation details, an independent forensic audit of NNPC’s finances, and a full investigation by the National Assembly. It also demanded accountability for all officials involved and reforms to prevent unilateral executive decisions affecting federation revenues.
“The government cannot demand sacrifice from citizens while quietly forgiving trillions owed by powerful institutions,” CHRICED said, warning that such actions would deepen public distrust and undermine confidence in economic reforms.