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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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Beyond Arrests: Stakeholders Push Media to Expose Systemic Corruption

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Stakeholders in Nigeria’s anti-corruption space have called for stronger collaboration between the media, civil society, and government institutions to enhance the implementation of the National Anti-Corruption Strategy (NACS) 2022–2026.

This was the outcome of a one-day workshop themed “Reinvigorating the National Anti-Corruption Strategy (NACS) 2022–2026: A Post-Assessment Roadmap for the Fourth Estate,” which brought together representatives of anti-corruption agencies, civil society organisations, and leadership of the Nigeria Union of Journalists from across the federation and the FCT.

The workshop focused on assessing progress at the midpoint of the NACS and developing a strategic framework to strengthen the role of the media as a watchdog in preventing corruption.

Participants noted that corruption cannot be tackled solely through prosecution, but requires systemic reforms, ethical conduct, and transparency across institutions and society.

They acknowledged that while the NACS provides a robust framework for combating corruption through preventive measures, its impact has been weakened by gaps in coordination among agencies, low public awareness, limited media engagement, political interference, and slow judicial processes.

The workshop further observed that the media, often described as the Fourth Estate, remains underutilised in the prevention pillar of the strategy, with a tendency to focus more on reporting arrests rather than exposing systemic loopholes.

Participants also highlighted the untapped potential of digital forensic tools and artificial intelligence in advancing investigative journalism, stressing that these innovations are yet to be fully integrated into anti-corruption efforts.

Additionally, the need for institutional protection and incentives for whistleblowers and investigative journalists was described as urgent to ensure sustained accountability.

The workshop resolved that anti-corruption agencies should establish dedicated “media desks” to improve real-time access to non-classified information for journalists, thereby promoting transparency and evidence-based reporting.

It also emphasised that the media should be recognised not just as observers but as active drivers of reform, deserving of legal protection and institutional support.

Participants recommended the introduction of specialised training programmes to equip journalists with the skills to better interpret the pillars of the NACS, particularly in areas such as public financial management and ethics compliance.

They urged the media to shift focus from prosecution-driven narratives to preventive advocacy by promoting solution journalism and highlighting institutional reforms that reduce corruption risks.

The workshop also called for expedited legislative action on whistleblower protection to safeguard sources and strengthen investigative reporting.

To ensure sustainability, participants proposed the establishment of a tripartite monitoring committee comprising government, media, and civil society organisations to conduct quarterly reviews of the strategy’s progress up to 2026.

Participants commended the Independent Corrupt Practices and Other Related Offences Commission (ICPC) and other stakeholders for their commitment to advancing anti-corruption efforts, while urging the Federal Government to provide adequate funding to prevent operational constraints.

The workshop reaffirmed that a revitalised and empowered media sector is critical to the success of the National Anti-Corruption Strategy, stressing that journalists must investigate fearlessly, report responsibly, educate citizens, and hold leaders accountable.


The communiqué was jointly signed by Musa Adamu Aliyu, Chairman of ICPC, and Alhassan Yahya Abdullahi, President of the Nigeria Union of Journalists, on behalf of participants.

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Centre Commends Nigerian Military’s Intensified Operations in North Central, Charges Armed Forces to Deepen Gains and Ensure Peaceful Easter Across The Country

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The Civic Centre for National Security and Civic Responsibility (CCNSCR) has commended the Chief of Defence Staff, General Olufemi Oluyede, and the Armed Forces of Nigeria for what it described as “notable and encouraging improvements” in security operations across Nigeria’s North Central region.

In a statement issued on Thursday and signed by its Executive Director, Dr Johnson Audu, the group said recent military gains in the region reflect a renewed operational drive and stronger coordination under the current leadership of the Armed Forces.

The group noted that communities across several North Central states, previously plagued by banditry, violent attacks, and persistent security disruptions, are beginning to witness a gradual restoration of order, improved troop presence, and more responsive military interventions.

According to the statement, these developments point to a more proactive and intelligence-driven approach by the military, resulting in the disruption of criminal networks and the containment of threats that had long destabilised parts of the region.

“The Civic Centre for National Security and Civic Responsibility commends the Chief of Defence Staff, General Olufemi Oluyede, for the renewed sense of direction and operational coordination within the Armed Forces. The emerging security improvements across the North Central region are both significant and reassuring,” the statement reads.

The group observed that sustained offensives targeting criminal enclaves, alongside increased surveillance and rapid deployment capabilities, have contributed to weakening the operational capacity of armed groups.

It added that the military’s growing ability to secure key transport routes and respond swiftly to distress situations has helped restore public confidence in affected communities.

Dr Audu said the Armed Forces deserve recognition for maintaining pressure on criminal elements despite the complex and evolving nature of security challenges in the region.

“The men and women of our Armed Forces continue to demonstrate resilience, discipline, and commitment in the face of difficult operational realities. Their efforts in safeguarding lives and stabilising communities across the North Central deserve national commendation,” he said.

While applauding the progress made, the group emphasised that the current gains must be consolidated and sustained to prevent any relapse into widespread insecurity.

It urged the military to intensify ongoing operations and maintain strategic momentum in order to ensure that recent improvements translate into lasting peace across the region.

“These gains, while commendable, remain fragile. It is imperative that the Armed Forces sustain the current operational tempo and continue to apply pressure on criminal elements to ensure that stability is not only achieved but preserved,” the statement added.

The group specifically charged the military leadership to replicate emerging pockets of stability across other troubled areas, stressing that consistent presence and sustained engagement are critical to long-term success.

Looking ahead to the Easter period, the CCNSCR called on the Armed Forces to ensure heightened vigilance and robust deployment to guarantee a peaceful and secure celebration across the country.

“We urge the military to sustain and intensify its efforts to ensure that Nigerians across all regions can observe the forthcoming Easter season in peace and safety. The goal must be to replicate and expand current security improvements nationwide,” the statement said.

The group also underscored the importance of citizen cooperation in supporting the work of security agencies, noting that lasting security cannot be achieved through military action alone.

It called on residents of the North Central region and Nigerians at large to remain vigilant, share credible information with security agencies, and resist any form of collaboration with criminal groups.

“Security is a shared responsibility. Citizens must actively support the Armed Forces through vigilance, cooperation, and a collective rejection of all forms of criminality. The fight against insecurity requires a united national effort,” Dr Audu said.

The statement further encouraged community leaders, civil society groups, and local institutions to strengthen grassroots engagement and promote a culture of peace and mutual responsibility.

It stressed that trust between citizens and the military remains a critical factor in sustaining recent gains and preventing the resurgence of violence.

The CCNSCR concluded by reaffirming its support for the Armed Forces and its commitment to promoting civic participation in national security, urging all stakeholders to remain resolute in the collective effort to secure the nation.

“The progress recorded in the North Central region must serve as a foundation for broader national stability. With sustained military effort and active citizen collaboration, Nigeria can move steadily towards lasting peace and security,” the statement said.

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New Party, DLA, Unveils Ideological Agenda, Targets Economic Reform, Security

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A new political party, the Democratic Leadership Alliance (DLA), has announced its entry into Nigeria’s political space, outlining an agenda focused on economic reform, national security, and governance driven by ideology.

In a statement signed by its National Chairman, Samuel M. Memeh, and National Publicity Secretary, Chris Mustapha Nwaokobia Jnr., the party said its formation was in response to Nigeria’s “systemic failure, economic stagnation, and insecurity.”

The party said it is founded on the principles of Pan-Africanism, ethical leadership, scientific advancement, and people-centred governance, which it intends to translate into policy actions.

The DLA said it would pursue a transition from a consumption-based economy to one driven by production, innovation, and industrialisation.

It listed its priorities to include support for local manufacturing, investment in technology and research, and the promotion of youth-led enterprises.

According to the party, Nigeria’s development depends on building systems that enable citizens to create wealth and expand economic opportunities.

The party expressed concern over insecurity affecting farming communities, including the destruction of farmlands and displacement of farmers.

It proposed legislative and policy measures to address the situation, including regulation of cattle movement and the adoption of ranching systems.

The DLA said such measures are necessary to protect farmers, ensure food security, and stabilise the economy.

The party called on Nigerians to support its platform, describing its emergence as part of a broader effort to rebuild the country through collective responsibility.

It said membership is open to individuals who align with its vision and urged citizens to engage with its policies and programmes.

The announcement comes as political activities begin to gather pace ahead of the next election cycle, with new and existing parties seeking to mobilise support.

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