Nigeria Writes Off $1.42bn, N5.57trn Legacy NNPCL Debts After Reconciliation

The Nigerian Government has written off the bulk of legacy debts owed by the Nigerian National Petroleum Company Limited (NNPCL) to the Federation Account, clearing about $1.42 billion and N5.57 trillion following a reconciliation exercise approved by President Bola Tinubu.

The decision is contained in a regulatory document prepared by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and presented at the November meeting of the Federation Account Allocation Committee (FAAC).

The move effectively settles long-standing balances arising from crude oil liftings, production-sharing contracts and joint venture royalties accumulated up to December 31, 2024.

According to the commission, the approval followed the recommendations of a stakeholder committee constituted to reconcile claims between the national oil company and the Federal Government.

“However, the commission recently received a Presidential Approval to nil off the outstanding obligations of NNPC Ltd as at 31st December 2024 as submitted by the Stakeholder Alignment Committee on the Reconciliation of Indebtedness between NNPC Ltd and the Federation,” the document stated.

Before the adjustment, outstanding obligations reported to FAAC stood at about $1.48 billion and N6.33 trillion.

Following the reconciliation, most of the balances were removed from the Federation’s books.

“Consequently, out of $1,480,610,652.58 and N6,332,884,316,237.13, the affected outstanding obligations that have been nil off are $1,421,727,723.00 and N5,573,895,769,388.45. The commission has passed the appropriate accounting entries as approved,” the regulator said.

An analysis of the figures shows that the write-off represents about 96 per cent of the dollar-denominated debt and roughly 88 per cent of the naira obligations previously classified as outstanding.

Officials familiar with the process said the decision was aimed at resolving years of disputes over historical claims between the parties and allowing both the Federation and NNPCL to operate with cleaner balance sheets going forward.

The NUPRC, however, clarified that the approval does not cover liabilities incurred in 2025.

Statutory obligations arising between January and October this year remain outstanding, with balances of about $56.8 million and N1.02 trillion linked to lifting-related charges and joint venture royalties.

The commission disclosed that part of the dollar-denominated liabilities had been recovered during the period under review.

“However, the commission received $55,003,997.00 in the month under review from the outstanding, leaving a balance of $1,804,755.32 and N1,021,550,672,578.87. The amount of $55,003,997.00 received is part of the total collection reported above for sharing by the Federation this month,” the document added.

The debt relief comes against the backdrop of weaker upstream revenue performance.

Data in the same FAAC document show that the commission fell short of its approved monthly revenue target for November by more than N540 billion, largely due to lower-than-expected royalty receipts from oil and gas production.

Actual collections in the month also declined compared with October levels.

China Launches Major Military Drills Around Taiwan

China has begun large-scale military drills around Taiwan, simulating the seizure and blockade of key areas of the island, in what Beijing describes as a warning to “separatist forces.”

The exercise, codenamed “Justice Mission 2025,” involves China’s army, navy, air force and rocket force, including live-fire drills.

It comes days after the United States approved an $11 billion arms sale to Taiwan, a move that drew strong condemnation from Beijing and led to sanctions against US defence firms.

Taiwan’s defence ministry said it detected 89 Chinese military aircraft and 28 warships and coastguard vessels operating near the island on Monday.

In response, Taiwan has deployed its own missile systems and forces, placing them on high alert to protect the island and its population.

Taiwan’s presidential office criticised the drills as a challenge to international norms, while the transport ministry announced the diversion of domestic and international flights away from affected zones, impacting more than 100,000 passengers.

China’s Eastern Theater Command described the drills as a “shield of justice,” warning that any move toward Taiwan independence would be met with force.

Beijing maintains that Taiwan is part of its territory and has not ruled out the use of “non-peaceful means” to prevent secession.

US Pledges $2 Billion to UN Humanitarian Programs Amid Funding Cuts

The United States has pledged $2 billion (£1.5bn) to support United Nations (UN) humanitarian programmes but warned the UN it must “adapt or die,” officials said in Geneva on Monday.

The announcement was made by Jeremy Lewin, President Trump’s Under Secretary for Foreign Assistance, alongside UN emergency relief chief Tom Fletcher.

While the funds are expected to save “millions of lives,” the contribution represents only a fraction of the $17 billion the US provided to UN humanitarian efforts in 2022.

The funding comes with strict conditions, prioritising just 17 countries, including Haiti, Syria, and Sudan, while excluding Afghanistan and Yemen.

Lewin cited evidence that UN funds in Afghanistan were being diverted to the Taliban, stressing that Trump would not tolerate US aid supporting terrorist groups.

The US also barred spending on climate-related projects, describing them as non-“life-saving” and not in “US interest.”

Lewin emphasised efficiency, warning the UN against duplicating aid programmes and insisting on reform.

While the UN welcomes the funding, aid agencies warn that the restrictions challenge core humanitarian principles of neutrality and impartiality.

Already, cuts have forced closures of mother and baby clinics in Afghanistan and reduced food rations for displaced people in Sudan, with global child mortality expected to rise.

Despite the limitations, the $2 billion injection offers a lifeline as the UN continues to navigate a severe funding crisis amid shrinking support from other donors, including the UK and Germany.