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Energy governance group faults ADC, says Tinubu’s approval of NNPC legacy balance reconciliation restores fiscal transparency, not revenue loss

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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.

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54 Garlands To A Performer: Happy Birthday To Governor Peter Mbah

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Happy Birthday To An Achiever, History Shall Be kind To You For Your Noble Strides In Leadership.

In the theatre of leadership, where promises often fade into the background of political routine, a few performers step onto the stage with clarity, purpose, and measurable impact. One such figure is Peter Mbah, the Governor of Enugu State, whose journey continues to attract attention for its pace, precision, and ambition.

As he marks his 54th birthday today the 17th of March, it is fitting to string together not just words, but garlands—symbols of appreciation for a man whose governance style has leaned heavily toward results.
Governor Mbah’s leadership narrative is one defined by urgency.

From the outset, he signaled that governance would not be business as usual. His administration set bold targets, particularly in areas such as education, infrastructure, and economic expansion. Rather than dwell in rhetoric, his approach has emphasized timelines, deliverables, and accountability—traits more commonly associated with corporate leadership than traditional politics.

One of the most striking elements of his governance is his focus on education reform. By prioritizing smart schools and digital learning infrastructure, Mbah has demonstrated an understanding that the future of any society lies in how well it prepares its young minds. His policies reflect a belief that education must not only be accessible but also relevant in a rapidly evolving global landscape, little his signature refrain TOMORROW IS HERE resonates not only with Ndi’Enugu and the people of the South East but across the nation.

Infrastructure development under his watch has also taken center stage. Roads, transport systems, and urban renewal projects have been approached not just as physical upgrades, but as economic enablers. The philosophy is simple: when movement becomes easier, commerce thrives, and when commerce thrives, people prosper.

Beyond policy and projects, there is also the intangible quality of leadership presence. Governor Mbah has cultivated an image of a leader constantly in motion—inspecting, engaging, pushing. This has helped shape public perception of a government that is active and responsive, rather than distant and ceremonial.

At 54, the Governor stands at a point where experience meets momentum. There is enough behind him to assess his direction, and enough ahead to determine his legacy. The expectations are high, but so too is the energy he appears to bring to the role.

Birthdays often invite reflection, but they also offer an opportunity to look forward. For the people of Enugu State, this moment is not just about celebrating the man, but also about evaluating the journey so far and anticipating what lies ahead.

Fifty-four garlands, then, are not merely decorative—they represent milestones, challenges overcome, and ambitions still in pursuit. For a performer in the arena of governance, the applause is never final. It is earned, continuously, in the quiet execution of vision.

Happy Birthday, Governor Peter Mbah, indeed under your responsible and responsive watch over Enugu State TOMORROW IS HERE.

Okechukwu Nwafor
Concerned Professionals For Good Governance. (A Good Leadership Advocacy Group).

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Nigeria is a Country with Rule of Law Under Renewed Hope Agenda – Military Veterans Caution Nigerian Army Over Land Grabbing

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Military and paramilitary veterans who participated in various operations, including ECOMOG, Operation Zaman Lafiya and Operation Pulo Shield, have raised concerns over what they describe as an alleged encroachment on land allocated to them in the Federal Capital Territory (FCT).

The veterans, who are beneficiaries of a welfare housing initiative coordinated through a Special Purpose Vehicle known as the Special Vehicle Plant (SVP) Trust Scheme, claim that construction activities have recently commenced on the land, which they say forms part of their approved housing project.

Speaking through their representatives, a retired Army officer Ayo Olufemi who chose not to mention his rank, the group urged relevant authorities to ensure that all issues relating to the land dispute are handled strictly in accordance with the law. They maintained that Nigeria remains a country governed by the rule of law under the Renewed Hope Agenda of President Bola Ahmed Tinubu.

According to the veterans, the land in dispute is identified as Plot 2303 in Asokoro Cadastral Zone A04, an area that shares boundaries with other military lands belonging to the Nigerian Army, Navy and Air Force.

The group explained that the plot was allocated for the development of a veterans’ welfare housing scheme under the SVP Trust arrangement. Under the framework, the SVP was responsible for site planning, subdivision of the land, allocation to individual beneficiaries, and coordination of Right of Occupancy documentation through the Federal Capital Territory Administration (FCTA).

They stated that beneficiaries opened individual land application files with the Federal Capital Development Authority (FCDA) and received official acknowledgements before land offer letters were issued in 2015.

The veterans further claimed that the project complied with regulatory requirements, including approvals from relevant departments within the FCDA, and that about ₦400 million was reportedly paid as part of statutory ground rent obligations requested by the FCTA.

However, the group alleged that officials linked to the Nigerian Army recently began construction activities on the plot, which they believe falls within the land allocated for the veterans’ housing scheme.
In a petition addressed to the Minister of the Federal Capital Territory, Nyesom Wike, the veterans called for government intervention to prevent what they described as an attempted takeover of the land pending clarification of ownership and boundary issues.

According to the petitioners, the Nigerian Army was previously allocated a neighbouring parcel identified as Plot 2302, measuring approximately 248 hectares, from a larger expanse of land originally designated for military formations and barracks development in the Asokoro area.

They stated that the area behind Mogadishu Cantonment had been earmarked primarily for barracks and accommodation for military personnel.

The veterans also said the allocation of Plot 2303 to their welfare scheme followed representations made to the then Head of State, General Sani Abacha, in recognition of the role played by Nigerian troops during the ECOMOG operations in Sierra Leone.
Beneficiaries of the scheme, they added, had fulfilled statutory obligations, including the payment of required ground rents and other administrative charges.

The group further alleged that attempts were made by individuals linked to Nigerian Army Properties Limited (NAPL) and other parties to merge Plot 2303 with the adjoining Plot 2302 belonging to the Army.

They also claimed that a Memorandum of Understanding was subsequently signed with developers for the construction of residential units described as “modern affordable homes,” with projected selling prices reportedly ranging between ₦81 million and ₦125 million.
According to the petitioners, construction work on the disputed area reportedly began on December 24, 2025.

The veterans stated that some infrastructure earlier developed on the land — including access roads and other facilities constructed in line with FCDA approvals — may have been affected by the ongoing activities.

They also raised broader concerns about the management of military land allocations in the Asokoro area.

According to the petition, Plot 2302 was originally designated for additional barracks development, including a proposed Phase 2 expansion of the facility now known as Tinubu Barracks Phase 1.

However, the veterans alleged that portions of the land were subsequently transferred or sold to institutions, developers and private individuals over time, contrary to the original land-use designation.

They further claimed that only a fraction of the approximately 248 hectares allocated to the Army has reportedly been developed for barracks infrastructure.

The petitioners also alleged that Nigerian Army Properties Limited has continued to transact on parts of the Army’s land allocation through arrangements involving developers and intermediaries.

The veterans argued that these developments may have contributed to boundary disputes involving neighbouring plots, including the land allocated for their housing project.

They therefore called on the FCT Minister to order an immediate review of activities on the disputed land and ensure that all actions comply with existing approvals and legal processes.

In addition, the group requested the establishment of an independent inquiry to examine allegations relating to the allocation and disposal of military land in the Asokoro area.

They also urged the Economic and Financial Crimes Commission (EFCC) to investigate claims concerning the alleged diversion or sale of portions of the Army’s land.

Efforts to obtain official responses from the Nigerian Army, Nigerian Army Properties Limited, and the Federal Capital Territory Administration were unsuccessful as of the time of filing this report.

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Tinubu Urged to Fire NAFDAC DG as IPSAW Protests Sachet Alcohol Ban in Abuja

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The Independent Public Service Accountability Watch (IPSAW) on Thursday staged a protest at the Federal Ministry of Health in Abuja, calling on President Bola Ahmed Tinubu to immediately dismiss the Director-General of the National Agency for Food and Drug Administration and Control (NAFDAC), Prof. Mojisola Christianah Adeyeye, over what it described as gross incompetence and abuse of public office.

The protest was led by the Executive Director of IPSAW, Ambassador Stephen Eriba, who accused the NAFDAC boss of unlawfully enforcing a ban on alcoholic beverages packaged in sachets and 200ml PET bottles.

Addressing journalists during the protest, Eriba said the agency’s action violated the provisions of the National Alcohol Policy already approved by the Federal Ministry of Health and currently in force.

He also alleged that the enforcement contradicted a presidential directive restraining NAFDAC from disrupting the operations of affected companies pending the outcome of a joint committee set up to review the matter.

According to him, the enforcement of the ban could trigger widespread economic and social consequences, including potential civil unrest and disruption of businesses involved in the production and distribution of the affected products.

He further argued that the decision ignored a resolution of the House of Representatives issued after a public hearing with key stakeholders on March 14, 2024, which urged NAFDAC to halt the ban and described the move as anti-people.

IPSAW maintained that the introduction of alcoholic beverages in sachets and small PET bottles was designed to cater to low-income adult consumers who prefer smaller and more affordable quantities, stressing that banning the products would deny such consumers the freedom of choice.

The group also disputed claims that sachet alcohol encourages abuse, insisting that smaller packaging may instead discourage excessive consumption typically associated with larger containers.

Eriba noted that local manufacturers produce sachet alcohol under hygienic conditions and with regulatory approval, including certification from NAFDAC itself.

He added that industry operators have invested heavily in public awareness campaigns promoting responsible alcohol consumption and discouraging underage drinking.

While expressing support for regulatory efforts aimed at removing unsafe products from the market, IPSAW said such decisions should be based on empirical evidence rather than what it called emotional or unverified claims.

The group warned that enforcing the ban could lead to job losses across the alcohol production value chain, encourage the proliferation of illicit and unregulated products, and result in revenue losses for the government.

IPSAW therefore urged President Tinubu to take decisive action by removing the NAFDAC Director-General from office, arguing that her continued stay in office was no longer in the public interest.

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