Odita Sunday 
The African Democratic Congress (ADC) has faulted President Bola Ahmed Tinubu’s decision to approve the cancellation of legacy debts owed by the NNPC Ltd to the Federation Account, warning that the action could deprive states and local governments of billions of naira.
In a statement signed by its National Publicity Secretary, Mallam Bolaji Abdullahi, the party said the debt write-off lacked constitutional backing and violated revenue-sharing provisions.
Abdullahi said documents submitted to FAAC indicated that about $1.42bn and N5.57trn in outstanding NNPC obligations were removed from the Federation Account records.
He noted that the debts included liabilities arising from production sharing contracts, domestic supply obligations and royalty receivables.
According to the ADC, the scale of the write-off was alarming, as up to 96 per cent of dollar-denominated debts and 88 per cent of naira-denominated balances were cancelled through executive directive.
“This action effectively reduces the revenue base constitutionally distributable to states and local governments,” Abdullahi said.
The party argued that under Section 162 of the Constitution, revenues due to the Federation are not subject to presidential discretion.
“The Federation Account belongs to all tiers of government and cannot be altered by executive fiat,” he stated.
Abdullahi also criticised the National Assembly for failing to challenge what he described as a serious constitutional breach.
“Ordinarily, such actions should trigger impeachment proceedings,” he said.
The ADC urged lawmakers to assert their constitutional role and prevent further erosion of subnational finances.
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