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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.
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IKOH NDI ABIA 2027: The Maturity Of Time For A Calm, Experience And Winning Leadership In Abia State
By Aaron Mike Odeh
Politics, especially in a developing democracy like ours, is beyond mere political activities and electoral contests. It is fundamentally about leadership, vision, emotional intelligence, capacity, and the ability to inspire confidence among the people. In moments when the destiny of a people stands at a defining crossroads, wisdom demands that political parties and stakeholders place competence, experience and acceptability above sentiments and unnecessary experimentation.
As someone who has actively participated in Abia politics for over twenty-six years, occupying different positions at appointment status, i believe I possess the moral standing and practical experience to speak with clarity on the political future of Abia State and the direction the All Progressives Congress (APC), should take ahead of the 2027 governorship election.
My political journey and Media Consultancy has taken me across the length and breadth of NIGERIA including Abia State. From Arochukwu to Ukwa, from Umunneochi to Ikwuano, I have interacted closely with party leaders, grassroots mobilizers, traditional institutions, youths, women groups and stakeholders across different divides. I have watched governments emerge and fade. I have seen political structures built and dismantled. I have equally studied the expectations, emotions and aspirations of Abia people over the years.
From this wealth of experience and practical evaluation of Abia politics, one fact has remained consistently clear: for APC to genuinely position itself for victory in 2027, the party must present a candidate with political maturity, administrative experience, emotional stability, credibility and the capacity to unite various interests within and outside the party.
Without hesitation, I strongly believe that Chief Henry Ikechukwu Ikoh perfectly fits into this critical expectation.
Chief Ikoh represents a rare blend of humility, experience, consistency and strategic political understanding. In a political environment often dominated by controversies, unnecessary bitterness and divisive tendencies, he has remained calm, focused, approachable and remarkably stable. These qualities may appear ordinary to some people, but in practical governance and political management, they are indispensable virtues that sustain leadership and build confidence among the electorate.
One of the strongest assets Chief Ikoh possesses is his maturity and ability to relate across political, ethnic and social lines. Politics in Abia today requires a leader who can build bridges rather than walls; a leader who understands that governance succeeds better when stakeholders are respected and united under a common vision. Chief Ikoh has demonstrated this quality over the years through his interactions with people across party affiliations and communities.
Beyond his personal qualities, Chief Henry Ikechukwu Ikoh possesses extensive experience in public service and political administration. Leadership is not learned overnight. It is developed through years of service, sacrifice, strategic engagement and practical exposure. Abia State at this moment requires a leader who understands governance, appreciates political realities and possesses the administrative competence to navigate the challenges confronting our people.
Another important factor that distinguishes Chief Ikoh is his consistency of purpose. His aspiration to govern Abia State is not a sudden ambition driven by opportunism or political convenience. Since 2003, he has remained steadfast, focused and committed to his vision for the state. Such consistency speaks volumes about conviction, preparedness and genuine passion for service.
In politics, consistency builds trust. It reassures the people that a leader is not merely pursuing personal ambition but is driven by a long-term vision and commitment to societal development. This is one quality many Abians have come to appreciate in Chief Ikoh.
Furthermore, APC as a party must begin to prioritize electability and acceptability ahead of internal sentiments. Elections are won not merely through slogans, but through strategic calculations, grassroots acceptance and broad-based support. The reality before us is that the people of Abia are yearning for a leadership that is calm, responsible, inclusive and development-oriented. They desire a leader who can listen, unite and inspire confidence across different sectors of society.
Chief Henry Ikechukwu Ikoh possesses these qualities in abundance.
His calm disposition, amiable personality and infectious ebullience naturally attract people to him. He is not known for needless controversies or divisive politics. Rather, he embodies the spirit of maturity and responsible engagement that APC needs to expand its acceptance across Abia State.
The journey toward 2027 should therefore not be approached with bitterness, selfish calculations or divisive tendencies. It should be approached with sincerity, wisdom and genuine concern for the future of Abia State and the success of our great party.
There comes a moment in the life of every people when destiny presents an opportunity that must not be ignored. I strongly believe that moment has come for APC in Abia State.
Indeed, as the Holy Scripture declares, “The time to favour Zion, yea, the set time, has come.” For Abia State, this is the maturity of time to embrace tested experience, political maturity and purposeful leadership.
With deep sense of responsibility and commitment to the progress of our state, I most respectfully appeal to APC stakeholders, leaders and delegates to rally behind Chief Henry Ikechukwu Ikoh and support the vision of IKOH NDI ABIA 2027.
This is not merely about an individual ambition; it is about giving APC the strongest opportunity to win the governorship election and provide purposeful leadership for the good people of Abia State.
The task before us is collective. The future is now. And the time is ripe for a leader with capacity, humility, experience and vision.
THE SET TIME IS NOW!
Aaron Mike Odeh, A Public Affairs Analyst, Media Consultant, Human and Community development advocate wrote from Post Army Housing Estate Kurudu Abuja
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Alleged Coup Trial: Cleric Says He Warned That The Plot Would Fail
*Admits he received money for ‘prayers’
A Federal High Court in Abuja, on Monday, viewed a video- recorded statement by Sheikh Sani Abdulkadir, the sixth defendant in the ongoing trial of persons accused of conspiring to overthrow the government of President Bola Tinubu.
In the recording, the Sheikh, who admitted receiving money to pray for the success of the operation, however, claimed that he warned the alleged plotters that their plan was doomed and that they would be sabotaged from within.
The video recording was played during the continuation of trial proceedings, with the fourth prosecution witness (PW4) still in the witness box.
In the recording, Abdulkadir, an Islamic cleric, said he had known the alleged ringleader, Colonel Maaji, for less than a year and was approached through an intermediary identified as Sanda to offer spiritual support for the plot.
He told investigators that Sanda informed him that his “Oga” intended to stage a coup and needed prayers regarding its likely success. After conducting the prayers, Abdulkadir said he advised them the operation would fail and that two persons would eventually expose those involved.
A subsequent request was relayed back to him, he said, asking for further prayers to prevent those two individuals from speaking out. Money was later transferred to him for prayers and charity, and names of alleged participants were forwarded for inclusion.
Abdulkadir said he first learnt of the arrests through media reports, after Sanda had informed him that Colonel Maaji had been unreachable for four days. He maintained throughout the recording that the funds he received were strictly for prayers and not in support of any coup attempt.
He also acknowledged understanding that a coup meant a military overthrow of government but said he did not report the plot because he did not know who to report to.
The cleric said his arrest came after he visited the Economic and Financial Crimes Commission (EFCC) to resolve restrictions placed on his bank account.
Upon contacting an EFCC deputy director, he was invited to the commission’s office to explain the source of the funds. He denied making any coup-related statement while in EFCC custody and stated that he was neither assaulted nor tortured, and that all his statements were made voluntarily.
Following the playback, the prosecution sought to tender extra-judicial statements made by all six defendants before a Special Investigation Panel and military police authorities.
However, defence lawyers of all six defendants objected, arguing the statements were either involuntarily obtained or made in violation of the Administration of Criminal Justice Act (ACJA).
Their objections include failure to inform defendants of their right to legal representation; alleged discrepancies between video recordings and corresponding written statements; allegations of coercion, inducement and torture; and claims that the footage did not adequately establish the physical condition of defendants during recording.
Counsel to the fifth defendant further argued that, given the number of accused persons, the court should conduct separate trial-within-trial proceedings for each disputed statement rather than a combined exercise.
Responding, the prosecution urged the court to dismiss the objections, maintaining that the law does not mandate separate proceedings for each defendant and that the trial judge holds discretion over how evidence is received.
Justice Joyce Abdulmalik ruled in favour of a single joint trial-within-trial to determine the voluntariness and admissibility of all the disputed statements.
The case was then adjourned to May 12.
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2027 zoning debate: Opposition must choose strategy over sentiment — Atiku camp warns
The media office of former Vice President Atiku Abubakar has cautioned opposition political actors against embracing what it described as a self-defeating and intellectually dishonest narrative that insists the 2027 presidential ticket must be zoned exclusively to the South.
In a statement issued on Monday in Abuja, signed by Olusola Sanni, media aide to former Vice President Atiku Abubakar, the camp said while the ruling APC may understandably retain its southern presidential configuration around incumbent President Bola Ahmed Tinubu, it would amount to political naivety for the opposition to adopt the same logic without a sober assessment of electoral realities.
The statement noted that politics must be driven by strategy, coalition-building, and hard electoral arithmetic—not emotional talking points or selective moral arguments.
“The first and most obvious question is this: how does a Southern opposition candidate realistically unseat a sitting Southern president? Nigerian political history offers no precedent for such an outcome. No incumbent president has ever been defeated by an opposition challenger from the same geopolitical bloc. To insist otherwise is to enter the contest already defeated,” the statement said.
The Atiku camp further argued that the moral argument being advanced in favour of southern zoning collapses under scrutiny.
“By 2027, the South would have held presidential power for approximately 18 years in the Fourth Republic, compared to about 10 years for the North. If the South retains power for another four years, that disparity widens even further. It therefore becomes difficult to understand the justice in an argument that seeks to deepen an already existing imbalance under the guise of equity,” the statement added.
The statement also accused some political actors of selective memory and opportunism, particularly those who abandoned the zoning principle in 2011 following the death of President Umaru Musa Yar’Adua, only to now present it as a sacred political doctrine.
“It is intellectually dishonest for those who enthusiastically supported a Southern presidency under Goodluck Jonathan in 2011, despite the North’s legitimate expectation under the informal zoning arrangement, to now suddenly posture as custodians of rotational justice. Principles do not become sacred only when they align with personal ambition.”
While affirming that the Southeast’s aspiration to produce a president remains legitimate and deserving of serious national engagement, the statement warned against reducing that aspiration to what it called “transactional political bargaining.”
“The Southeast deserves a sustainable and credible pathway to national leadership—not symbolic tokenism or bespoke arrangements tailored to satisfy one individual’s ambition,” it stated.
The statement concluded by urging the opposition to focus on building a credible national coalition capable of defeating the incumbent rather than embracing narratives that may inadvertently strengthen President Tinubu’s re-election prospects.
“Defeating an incumbent president requires realism, not romanticism; strategy, not sentiment; honesty, not selective memory. The opposition must decide whether its goal is to make an emotional statement or to actually win power.”
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