News
Energy governance group faults ADC, says Tinubu’s approval of NNPC legacy balance reconciliation restores fiscal transparency, not revenue loss
The Centre for Energy Governance and Public Finance Accountability (CEGPFA) has dismissed claims by the African Democratic Congress (ADC) that President Bola Ahmed Tinubu’s approval of the reconciliation and removal of certain Nigerian National Petroleum Company Limited (NNPC Ltd) legacy balances from the Federation Account was unconstitutional or financially harmful to states and local governments.
Speaking on Friday at a press conference held at the Transcorp Hilton, Abuja, the centre said the allegations ignored the historical, legal and fiscal realities surrounding the disputed balances, describing them as “unfounded” and “misleading”.
Dr Julius Osagie Eromonsele, executive director of the centre, said the balances in question were not fresh revenues generated under the current administration but long-standing legacy entries accumulated over several decades, many of which predated the Petroleum Industry Act (PIA).
“It is crucial to note that the balances in question are not recent revenues generated under the current administration. They are long-standing legacy entries accumulated over decades, many of them arising before the enactment of the Petroleum Industry Act,” Eromonsele said.
He explained that the disputed figures stemmed from unresolved production sharing contract disputes, domestic crude supply obligations under the former fuel subsidy regime, royalty assessment disagreements and reconciliation gaps between NNPC, regulators and revenue agencies.
According to him, these balances had remained on the Federation Account books for years despite repeated audits that questioned their accuracy, legal enforceability and collectability, creating a distorted picture of public finances across all tiers of government.
Countering claims that the balances were arbitrarily written off by presidential fiat, Eromonsele said the approval followed a formal reconciliation process involving relevant fiscal and regulatory institutions, with presentations made to the Federation Account Allocation Committee (FAAC).
“Official records show that approximately $1.42 billion and N5.57 trillion were removed from the Federation Account books after reconciliation established that these figures were either duplicated, overstated, unsupported by verifiable documentation, or no longer legally recoverable,” he said.
He stressed that the directive applied strictly to legacy balances accumulated up to December 31, 2024, adding that reconciliation should not be confused with the cancellation of valid revenue.
“Reconciliation is a recognised public finance practice. It is not the same as cancelling valid revenues. Rather, it is the process of aligning records to reflect economic and legal reality,” Eromonsele said.
He also clarified that no cash was removed from the Federation Account and that no allocations to states or local governments were reversed.
“The funds in question were not sitting as cash in the Federation Account. What occurred was the correction of inherited accounting distortions that had long outlived their practical relevance,” he added.
Addressing constitutional concerns raised by the ADC, the centre said Section 162 of the Constitution applies only to revenues that are lawfully due and payable, not to disputed or extinguished claims.
“Public finance administration requires constant reconciliation to ensure that only valid, auditable and legally enforceable revenues are presented for distribution,” Eromonsele said.
He argued that sustaining false receivables undermines budgeting, fiscal discipline and revenue predictability for subnational governments, noting that credible and realistic revenue flows are more beneficial than inflated figures that never materialise.
The centre said the reconciliation aligns with reforms introduced by the PIA, which repositioned NNPC Ltd as a commercial entity operating under international accounting standards.
Concluding, the centre commended President Tinubu for approving what it described as a difficult but necessary decision.
“Writing off long-standing, unverifiable legacy balances required political will and a commitment to fiscal honesty over convenience. It sends a clear signal that Nigeria is prepared to confront the structural weaknesses of its energy revenue system rather than perpetuate them,” Eromonsele said.
He urged politicians and stakeholders to approach the issue responsibly and support reforms that strengthen transparency and accountability in Nigeria’s public finance system.
Full speech attached
BEING FULL TEXT AT A PRESS CONFERENCE ORGANISED BY THE CENTRE FOR ENERGY GOVERNANCE AND PUBLIC FINANCE ACCOUNTABILITY ON THE RECONCILIATION OF NNPC LTD LEGACY BALANCES AND THE FEDERATION ACCOUNT HELD AT TRANSCORP HILTON, ABUJA, ON FRIDAY, JANUARY 10, 2025
Ladies and gentlemen of the press, distinguished stakeholders, and fellow Nigerians, the Centre for Energy Governance and Public Finance Accountability has convened this important press conference to respond to unfounded claims by the African Democratic Congress (ADC) concerning President Bola Ahmed Tinubu’s approval of the reconciliation and removal of certain legacy balances attributed to the Nigerian National Petroleum Company Limited (NNPC Ltd) from the Federation Account.
The debate has been framed as a constitutional crisis and a deliberate deprivation of revenue due to states and local governments. Given the gravity of such allegations, it is important to ground this conversation in facts, law, and the historical context of Nigeria’s petroleum revenue administration.
BACKGROUND
It is crucial to note that the balances in question are not recent revenues generated under the current administration. They are long-standing legacy entries accumulated over decades, many of them arising before the enactment of the Petroleum Industry Act (PIA). These entries stem from unresolved production sharing contract disputes, domestic crude supply obligations under the fuel subsidy regime, royalty assessment disagreements, and persistent reconciliation gaps between NNPC, regulators, and revenue agencies.
For years, these balances remained on the Federation Account books despite repeated audits and reviews that questioned their accuracy, legal enforceability, and collectability. Treating such disputed figures as assured income created a distorted picture of public finances and fostered unrealistic revenue expectations across all tiers of government.
WHAT THE PRESIDENTIAL APPROVAL ACTUALLY MEANS
Contrary to claims of an arbitrary executive write-off, the President’s approval followed a formal reconciliation process involving relevant fiscal and regulatory institutions, including presentations made to the Federation Account Allocation Committee (FAAC).
Official records show that approximately $1.42 billion and N5.57 trillion were removed from the Federation Account books after reconciliation established that these figures were either duplicated, overstated, unsupported by verifiable documentation, or no longer legally recoverable. The directive applied strictly to legacy balances accumulated up to December 31, 2024.
Reconciliation is a recognised public finance practice. It is not the same as cancelling valid revenues. Rather, it is the process of aligning records to reflect economic and legal reality. Revenues that are not collectible cannot be distributed, and carrying them indefinitely on public accounts does not create wealth—it merely postpones fiscal clarity.
It is also critical to note that the funds in question were not sitting as cash in the Federation Account. No existing allocations to states or local governments were reversed or withdrawn. What occurred was the correction of inherited accounting distortions that had long outlived their practical relevance.
CONSTITUTIONAL AND FISCAL IMPLICATIONS
The ADC has cited Section 162 of the Constitution to argue that the President lacks authority to approve the removal of these balances. However, Section 162 applies to revenues that are lawfully due and payable to the Federation. It does not compel the perpetuation of disputed or legally extinguished claims as revenue.
Public finance administration requires constant reconciliation to ensure that only valid, auditable, and legally enforceable revenues are presented for distribution. Without this, the Federation Account would become a repository for accounting fiction rather than a transparent reflection of national income.
Furthermore, the Federation Account is administered collectively through FAAC, which includes representatives of the federal, state, and local governments. The reconciliation process was not unilateral, secretive, or detached from institutional oversight.
From a fiscal standpoint, sustaining false receivables undermines planning, budgeting, and fiscal discipline. States and local governments are better served by predictable, credible revenue flows than by inflated figures that repeatedly fail verification and never materialise in cash form.
This reconciliation also aligns with the reforms introduced by the Petroleum Industry Act, which repositioned NNPC Ltd as a commercial entity subject to international accounting standards. Legacy balances accumulated under a fundamentally different governance structure cannot be allowed to distort the post-PIA fiscal framework indefinitely.
CONCLUSION
In conclusion, the Centre for Energy Governance and Public Finance Accountability affirms that the reconciliation and removal of NNPC Ltd’s legacy balances from the Federation Account does not constitute a constitutional violation, nor does it deprive states and local governments of legitimate revenue.
Rather, it represents a necessary and responsible step toward restoring transparency, credibility, and realism to Nigeria’s public finance system—particularly in the oil and gas sector, which has long suffered from opaque accounting and inherited distortions.
The Centre acknowledges and commends President Bola Ahmed Tinubu for approving this difficult but necessary decision. Writing off long-standing, unverifiable legacy balances required political will and a commitment to fiscal honesty over convenience. It sends a clear signal that Nigeria is prepared to confront the structural weaknesses of its energy revenue system rather than perpetuate them.
True fiscal federalism cannot be built on numbers that exist only on paper. It must rest on transparent accounts, enforceable obligations, and a shared commitment to accuracy and accountability.
We urge all politicians and stakeholders to approach this issue with responsibility and restraint, and to support reforms that strengthen, not weaken, the integrity of Nigeria’s public finances.
Thank you.
[Questions]
Signed:
Dr Julius Osagie Eromonsele
Executive Director,
Centre for Energy Governance and Public Finance Accountability
News
Why CSOs, APC Leaders Want NASS To Takeover Rivers Assembly Duties
Civil society organisations, media professionals, and leaders of the APC on Friday called for urgent constitutional intervention in the escalating political crisis in Rivers State, demanding that the National Assembly take over the legislative functions of the Rivers State House of Assembly in line with Section 11 of the Constitution.
Addressing journalists during a one week non stop rally at the APC Secretariat on 23rd January 2026, the groups declared that the Rivers State House of Assembly had lost credibility, legitimacy, and public trust due to what they described as persistent abuse of legislative powers and a reckless attempt to impeach Governor Siminalayi Fubara.
They warned that Rivers State was sliding into a dangerous constitutional crisis, stressing that the ongoing impeachment process was no longer about legislative oversight but a deliberate effort to destabilise democratic governance. According to them, democracy in the state was under serious threat and silence at this point would amount to complicity.
The groups commended the Rivers State Chief Judge for refusing to constitute a probe panel and for respecting existing court orders, describing the decision as a clear affirmation of the rule of law and a rejection of illegality. They insisted that no evidence of gross misconduct, as required by the Constitution, had been presented against Governor Fubara, adding that the allegations were unsubstantiated and politically motivated.
They further accused the Rivers State House of Assembly of procedural lawlessness, vendetta politics, and disregard for judicial authority, arguing that such conduct rendered the Assembly incapable of performing its constitutional duties. On this basis, they urged the National Assembly to invoke Section 11 subsection 4 of the Constitution of the Federal Republic of Nigeria and assume the legislative functions of the state assembly to restore order and democratic stability.
The APC Leaders Forum and civil society groups also alleged that 27 lawmakers loyal to former Governor Nyesom Wike, led by Martins Amaewhule, were behind the crisis. They claimed the lawmakers had received constituency project funds estimated at about ₦350 million each, luxury SUV vehicles, and up to one year salary in advance, yet remained unsatisfied and determined to frustrate the current administration. According to the groups, the lawmakers were more interested in diverting state resources for personal benefit than allowing public funds to serve the people of Rivers State.
The coalition vowed to sustain the protests until decisive constitutional action was taken, including the takeover of legislative functions by the National Assembly. They called on Nigerians of goodwill to peacefully mobilise, maintain civic presence around the National Assembly, and resist what they described as legislative anarchy.
They maintained that Governor Fubara had shown prudence and commitment to the welfare of Rivers people, warning that Rivers State must not be sacrificed on the altar of political desperation.
The groups concluded with a call for unity in defence of democracy, declaring their resolve to continue the struggle until constitutional order is fully restored in Rivers State.
News
FG Approves Fresh ₦152bn for Contractors, BAVCCA Defends Finance Minister
The Bloggers and Vloggers, Content Creators Association in Nigeria (BAVCCA) has revealed that ₦152 billion was paid yesterday to contractors with verified contracts, as part of efforts to resolve a protest that disrupted activities at the Federal Ministry of Finance on Monday, January 19.
The protest, staged by indigenous contractors over outstanding payments for executed contracts, prevented access to the ministry’s premises and briefly blocked Minister of State for Finance, Doris Uzoka Anite, from entering her office.
BAVCCA, in a press conference addressed in Abuja by its National Secretary, Tabuko Kennedy on Thursday, January 22, clarified that the issue predated Anite’s assumption of office and was already being addressed by relevant government structures. The association’s independent panel of enquiry found the contractors’ grievances genuine, with many facing financial difficulties due to delayed payments.
According to BAVCCA, about 80% of verified obligations have been processed and paid, with the balance at various stages of reconciliation and documentation. The Federal Government has agreed to convene roundtable discussions with contractor representatives to harmonize records and expedite outstanding payments.
BAVCCA commended Anite’s commitment to resolving the issue, emphasizing that she had appealed for patience and requested time to understand the issues. The association urged contractors to pursue grievances through lawful and structured engagement, while calling on the media to report responsibly and avoid inflammatory narratives.
The incident has highlighted systemic administrative challenges, rather than personal failure or negligence by the Minister of State for Finance, BAVCCA noted.
The association urged, “the Federal Government to conclude outstanding verified payments.
“Contractors to embrace dialogue and documentation driven resolution.
“The media to report responsibly and avoid inflammatory narratives.
“Constructive engagement, transparency, and respect for institutions remain the best path forward.
PART OF THE STATEMENT READS
It is important to state that Doris Uzoka Anite has held the office of Minister of State for Finance for less than one month at the time of this incident. Our findings confirm that the contractors’ protest predated her assumption of office and was already being handled under the supervision of the Coordinating Minister and relevant government structures. Personalising the issue against her was therefore unfair and misleading.
Upon assuming office, the Minister appealed to contractors for patience, requested time to fully understand the issues, and committed to working with all relevant institutions to achieve a sustainable resolution, demonstrating good faith and empathy.
BAVCCA Panel of Enquiry
BAVCCA constituted an independent Panel of Enquiry comprising experienced content creators, investigative journalists, civil society observers, and policy analysts. The panel engaged contractors, Ministry officials, and independent observers to establish facts and assess responsibility.
Our Findings
The grievances of contractors are genuine. Many have executed verified projects and are experiencing financial difficulties due to delayed payments.
Status of Payments
Payments have commenced and are ongoing. Several contractors confirmed receipt of payments or partial settlements. The Federal Government has stated that about 80 percent of verified obligations have been processed and paid, with the balance at various stages of reconciliation and documentation. We urge completion of the remaining verified payments.
Dialogue and Resolution
Engagements between contractor representatives and government officials have resulted in an agreement to convene round table discussions to harmonise records and expedite outstanding payments.
Ministerial Responsibility
Our findings confirm that the Minister of State for Finance does not unilaterally control payment execution, which involves multiple agencies and statutory processes. We found no evidence of bad faith, obstruction, or personal misconduct by the Minister.
Rule of Law and Conduct
While protest is a democratic right, blocking public offices and preventing officials from performing their duties undermines governance and public safety. Grievances must be pursued through lawful and structured engagement, the statement concludes.
News
Alleged N4tr debts: 1,000 CSOs back local contractors protest against FG
***demand resignation of Finance Minister, Uzoka-Anite
No fewer than one thousand (1000) Civil Society Organizations (CSOs) have formed a strong Coalition to back the ongoing protest against the Federal Government, by Nigeria’s local contractors in Abuja.
The Coalition has also called on the Minister of State for Finance, Dr. Doris Uzoka-Anite, to resign quietly, to save Nigeria of the imminent economic crisis.
This was contained in a statement jointly signed on Wednesday by the Representative of National Vanguard for Accountable and Transparent Democracy (NVATD), Comrade Wisdom Abah; that of Nigerian Young Professionals Forum (NYPF), Engr. Istifanus Pam; Movement for Accountable and Good Governance (MAGGo), Comrade Babatunde Ibidapo; National Coalition for Peace, Unity and Progress (NCPUP), Alhaji Babale Idris; and that of National Forum of APC Young Professionals (NFAYP), Engr. Lukman Adejobi; on behalf of other groups.
The groups frowned at the refusal of the Finance Minister to implement the directive of President Bola Ahmed Tinubu on the outright payment of the outstanding debts owed the indigenous contractors in Nigeria.
They tagged it as a major sign of “economic sabotage”, ascribing the ongoing protest to “unwarranted negligence” of Dr. Uzoka-Anite, saying the ongoing civil action would hamper and ground the nation’s economy.
“We have been sounding this warning, calling and begging the Honourable Minister of State for Finance. This was what we were trying to avoid. But today, it is coming upon the nation. This whole thing was avoidable, but for the unwarranted negligence of the Minister, this is happening”, the statement said.
The Coalition, while acknowledging “the patience, long suffering, perseverance, and display of patriotism” by the Contractors whom they said, have endured the “shame and suffering since 2024”; also called on President Tinubu to urgently constitute another Presidential Committee to take over the responsibility of payment of the debts from the Finance Minister and her team.
“We have understudied this whole issue and we can comfortably tell anyone, including Mr. President, that this is a dangerous signal for economic sabotage. Dr. Uzoka-Anite and her collaborators should not be allowed to handle this issue anymore. It would do this country more harm than good. Infact, the Minister should quietly resign and abdicate her duties, to save the country from the looming economic crisis.
“If not for sabotage, why on earth should you allow the Federal Government to accumulate such a high debt of over four trillion naira (N4tr) since 2024, on projects that have been completed and even Commissioned by the executive. Her own case is even worse than Mr. Wale Edun. She is said to be selecting those contractors from her state of birth or those close to her contacts and paying them.
“Dr Doris Uzoka-Anite promised that warrants would be released once the list of eligible contractors was provided. The Contractors have since submitted the list of eligible recipients and it has been duly confirmed. Yet, no payment has followed the submission, aside some handful selective payments.
“Some of these local contractors have died as a result of pressure from banks where they took loans from, to execute the jobs. Some companies are now rendered bankrupt, while some business owners are down with stroke. Yet, the government is engaging in selective payment to their cronies and foreign contractors.
“Despite the intervention of the Deputy Speaker, House of Representatives, Benjamin Kalu, and the directive from President Tinubu in December that all debts should be cleared, these guys appear adamant. And it is not as if there is no fund. This is total sabotage and the end result is disastrous”, the Coalition warned.
The News Agency of Nigeria (NAN), had reported that, the All Indigenous Contractors Association of Nigeria (AICAN) on Monday resumed its protest in Abuja over N4 trillion debt owed to its members by the Federal Government for completed capital projects appropriated in the 2024 budget.
Speaking with journalists during the protest at the Ministry of Finance on Monday, AICAN President, Mr Jackson Nwosu, warned that the association might be forced to take drastic action if the outstanding payments were not settled.
Nwosu said the funds used to execute the 2024 capital projects were largely sourced from commercial banks, placing contractors under severe financial pressure; threatening to totally shut down the economy of the country, as “our next line of action”, “if they do not kill us”
NAN quoted Nwosu as saying, many contractors had defaulted on bank loans, leading to the seizure of properties, while some members had reportedly died as a result of the financial strain.
-
Uncategorized3 months agoParacetamol Use in Pregnancy Doesn’t Cause Autism, New Study Confirms
-
News2 months agoBreaking: FBNQUEST: Nestoil and Neconde are not under any receivership
-
News3 months agoCoalition Backtracks, Apologises To FIRS Chairman Adedeji Over False Allegations
-
News2 months agoCoalition Announces Nationwide and Global Protests Demanding Immediate Removal of NMDPRA CEO Farouk Ahmed
-
News3 months ago
NGO Empowers 150 Girls with Disabilities in FCT to Promote Inclusive Education
-
News3 months agoFCT Chief Judge Backs BAVCCA’s Call for Responsible Digital Media, Agrees to Co-Host National Conference
-
News2 months agoExposed: Mr Femi Otedola, accused of Aggressive Banking Gangsterism
-
Uncategorized2 months ago
NUPRC’s Digital Compliance Systems, Licensing Reforms Positioning Nigeria for Stronger Energy Investment, says BusinessMetrics
