 has launched a sharp constitutional challenge against President Bola Tinubu over his decision){kind=link}
The African Democratic Congress (ADC) has launched a sharp constitutional challenge against President Bola Tinubu over his decision to wipe out massive financial obligations owed by the Nigerian National Petroleum Company (NNPC) Limited to the federation account.
The presidency recently approved the cancellation of approximately $1.42 billion and N5.57 trillion in outstanding liabilities following what it described as a reconciliation exercise between NNPC Limited and the Federation Account Allocation Committee (FAAC).
However, the opposition party said the move crossed clear legal boundaries.
In a statement issued on Saturday, ADC spokesperson Bolaji Abdullahi argued that the president acted beyond his constitutional remit by approving the debt relief without consulting state governments or obtaining the consent of the National Assembly.
According to Abdullahi, financial reconciliations cannot be used as a substitute for constitutional procedures.
He insisted that revenue-sharing matters are strictly governed by law and cannot be altered through executive directives.
“What is being presented as an administrative clean-up is, in reality, a major fiscal decision with consequences for every tier of government,” Abdullahi said.
“No president has the authority to erase public liabilities that directly affect states and local councils.”
Furthermore, the ADC warned that the decision effectively shrinks the pool of funds available for distribution to subnational governments, many of which already struggle with shrinking revenues and rising obligations.
Citing Section 162 of the 1999 Constitution, the party stressed that all revenues accruing to the federation, including oil-related income and associated liabilities, must be paid into the federation account and shared according to constitutional provisions.
“The federation account is not a presidential account,” Abdullahi stated.
“It belongs collectively to the federal, state, and local governments, and no executive action can lawfully diminish it.”
Beyond the presidency, the ADC also directed criticism at the National Assembly, accusing lawmakers of failing to exercise proper oversight.
The party described the legislature’s silence as either complicity or a troubling abdication of responsibility.
Abdullahi characterised the debt cancellation as a grave constitutional breach, adding that it could constitute sufficient grounds for impeachment if Nigeria’s democratic institutions function as intended.
He concluded by warning that allowing such actions to stand would set a dangerous precedent, where constitutional safeguards are gradually replaced by executive discretion.