President Bola Ahmed Tinubu has approved the cancellation of a significant portion of debts owed by the Nigerian National Petroleum Corporation (NNPC) to the Federation Account, wiping off approximately $1.42 billion and N5.57 trillion.

The decision is part of the government’s broader economic reform and debt management strategy, aimed at reducing financial burdens on state-owned enterprises and improving liquidity for critical national development projects.

Officials stated that the move will enhance NNPC’s operational capacity, streamline revenue flows to the Federation Account, and support sustainable economic growth.

The government emphasized that the debt cancellation is expected to strengthen the petroleum sector, facilitate investment, and ultimately benefit Nigerians through improved service delivery and energy infrastructure.

This development aligns with President Tinubu’s administration’s ongoing reforms in the energy sector and its commitment to maintaining macroeconomic stability.