Nigeria has written off 1.42 billion US dollars and 5.57 trillion naira (around 3.85 billion US dollars) in debts owed by state oil company NNPC Ltd to the federal government, President Bola Tinubu announced, Reuters reported. The decision forms part of a broader effort to streamline the accounts of Africa’s top oil producer and enhance fiscal transparency.

The cancellation, approved at a federal accounts meeting in November, reconciles NNPC’s obligations through December 31, 2024, covering production-sharing contracts, domestic supply commitments, joint venture royalties and other repayment arrangements, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

Unpaid obligations from January to October 2025 are still under review, while a longstanding dispute over an alleged 42.37 billion US dollar under-remittance from 2011 to 2017 remains unresolved. NNPC maintains that all revenues during that period were properly accounted for.

The debt write-off is intended to clarify NNPC’s financial position ahead of plans to sell stakes in oil and gas assets, a move aimed at attracting investment and shoring up government finances amid declining crude revenues and rising debt levels. Analysts say the decision could improve the credibility of Nigeria’s oil sector accounts, strengthen fiscal planning, and facilitate investor engagement in upcoming divestments.

Tinubu’s push to “clean up” NNPC’s books underscores the Nigerian government’s focus on aligning state energy operations with broader fiscal and transparency objectives, as the country navigates ongoing economic pressures linked to global oil markets.