Former presidential candidate of the Labour Party, Peter Obi, has criticised the Federal Government over the approval of the write-off of nearly N8 trillion in debts owed by the Nigerian National Petroleum Company Limited (NNPC).
Expressing his concern in a post on X on Wednesday, Obi described the move as a dangerous sign of growing financial recklessness.
President Bola Tinubu had last month approved the cancellation of a substantial portion of debts owed by the Nigerian National Petroleum Company Limited (NNPC Ltd) to the Federation Account, wiping off about $1.42 billion and N5.57 trillion.
Obi said that the decision came despite unresolved audit queries and mounting economic hardship facing Nigerians.
“Financial recklessness is increasingly becoming normalized in our country,” Obi said.
According to Obi, reports indicate that the President approved the write-off of N5.57 trillion and $1.42 billion, amounting to approximately N8 trillion, in debts owed by NNPC, a company that recently declared profits and claimed it had “turned a new leaf.”
“This is the same agency currently facing serious audit inquiries for failing to account for N210 trillion,” he said.
Obi noted that the amount under audit scrutiny far exceeds Nigeria’s combined Federal budgets over a four-year period.
Providing context, Obi pointed out that the Federal Government’s budgets stood at approximately N21.83 trillion in 2023, N43.56 trillion in 2024, N54.99 trillion in 2025, and an estimated N58.18 trillion for 2026, bringing the total to about N178.56 trillion.
“Nigerians are still waiting for the outcome of the National Assembly investigation into the missing trillions,” he said.
He added that NNPC remains under scrutiny for trillions of naira spent on non-functional refineries, making the debt write-off even more troubling.
Obi argued that the write-off comes at a time when Nigerians are grappling with rising living costs following the removal of petroleum and electricity subsidies, without corresponding improvements in their welfare.
“Nigerians, already enduring severe hardships… are now confronted with this unexplained debt forgiveness,” he said.
He warned that the nearly ₦8 trillion write-off would effectively replace revenue the government is now seeking through what he described as “unfair taxation.”
The former Anambra State governor stressed that the funds written off could have been channelled into critical sectors of the economy.
“This almost N8 trillion write-off could have generated the revenue the government now seeks through these unfair taxes,” Obi said.
“This almost N8 trillion write-off could have generated the revenue the government now seeks through these unfair taxes,” Obi said.
He noted that the amount exceeds the N7.1 trillion combined allocation for education, health and agriculture in the 2025 Federal Budget.
“In practical terms, this money alone could fully fund critical areas of development, lifting millions of Nigerians out of poverty,” he added.
Obi further observed that the write-off sum is nearly twice the 2025 Federal security budget of N4.9 trillion, even as insecurity continues to ravage communities nationwide.
According to him, such resources could empower eight million youths, representing 10 per cent of Nigeria’s estimated 80 million unemployed, by creating approximately 1,000 jobs in each of the country’s 8,809 wards.
Obi insisted that the President, who also oversees the petroleum sector, owes Nigerians clear and transparent explanations.
“The citizens deserve honesty, fiscal discipline, and governance that protects their interests—not the interests of mismanaged corporations or political elites,” he said.
He concluded by urging Nigerians to resist what he described as a betrayal of public trust.
“This betrayal of the people must be stopped,” Obi said.
What you should know
The approval was documented by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), titled “Report of October 2025 Revenue Collection Presented at the Federation Account Allocation Committee Meeting Held on 18th November 2025”.
The directive effectively clears the legacy debts accumulated up to December 31, 2024, resolving long-standing disputes between NNPC Ltd and the Federation while leaving current liabilities from 2025 operations under ongoing monitoring.