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.

Thank you.

[Questions]

Signed:

Dr Julius Osagie Eromonsele

Executive Director,
Centre for Energy Governance and Public Finance Accountability

In an era when sub national governments are increasingly competing for global attention, foreign direct investment, and strategic partnerships, development narratives have evolved beyond policy documents, official statistics, and ceremonial commissioning of projects.

Today, states are defined as much by how governance is felt at the grassroots as by how it is articulated in government circles. Investors, development partners, and even tourists are paying closer attention to social stability, community engagement, youth inclusion, and the everyday lived experiences of ordinary citizens.

Within this changing global and national context, Nasarawa State is gradually shaping a development narrative that emphasises peace, inclusion, and grassroots participation. Beyond government-led initiatives, individuals and community-based foundations are playing increasingly visible roles in projecting the state’s image.

One such figure is Alhaji Dr. Muhammed Musa Maikaya, philanthropist, grassroots mobiliser, and founder of the Maikaya Development Foundation, whose sustained humanitarian and community-driven interventions are contributing to how Nasarawa is perceived within and outside Nigeria.

From rural communities in Toto, Awe, Doma, and Karu Akwanga, Wamba, Obi, Kokona Nasarawa to urban centres such as Lafia, Maikaya’s activities reflect a consistent belief that development must begin with the people, align with their realities, and empower them to become stakeholders in progress.

Through sports development, youth empowerment, educational support, health interventions, renewable energy support, and continuous engagement with traditional and community institutions, his initiatives are gradually reinforcing Nasarawa’s image as a peaceful, organised, and people-oriented state.

For Maikaya, grassroots development is not a political catchphrase but a guiding philosophy shaped by lived experience. Speaking during the finals of a grassroots football tournament organised by the Maikaya Development Foundation in Toto Local Government Area, he articulated a principle that has come to define his engagements across the state.

“Development is more encompassing if it reaches the grassroots. When villages, youths, women, and the vulnerable are carried along, development becomes a lot more meaningful, inclusive, and sustainable,” he said.

This philosophy has translated into a steady stream of community-focused initiatives. Football tournaments, skills acquisition programmes, educational support schemes, medical and humanitarian outreaches, and youth engagement forums supported by the foundation have become recurring features across Nasarawa State.

While many of these interventions are modest in scale, their cumulative impact has been significant, building trust between communities, strengthening social cohesion, and projecting Nasarawa as a state where development is people-centred.

Among the various tools deployed by Maikaya, sports, particularly football, has emerged as a powerful platform for grassroots mobilisation and unity. Football competitions organised across local government areas often draw teams from diverse ethnic, religious, and political backgrounds, creating spaces for interaction, dialogue, and mutual respect.

Observers note that these tournaments help reduce youth restiveness, promote discipline and teamwork, and foster a shared sense of identity among young people. Beyond their immediate social benefits, the competitions attract visitors from neighbouring states, thereby subtly expanding Nasarawa’s visibility and reputation.

A community leader in Toto, Alhaji Sani Abdullahi, described the impact as far-reaching. “What Maikaya is doing through sports goes beyond entertainment. He is uniting communities, engaging our youths positively, and showing outsiders that Nasarawa is peaceful and organised. This is the kind of exposure money alone cannot buy,” he said.

Beyond sports and mobilisation, the humanitarian footprint of the Maikaya Development Foundation has expanded steadily in recent years, touching key sectors such as education, health, energy, and community infrastructure. These interventions reflect an understanding that development is multi-dimensional and that social welfare must go hand in hand with economic and physical infrastructure.

In the education sector, the foundation has provided financial support to over 2,000 tertiary students from Nasarawa State over some few years, easing the burden of tuition, accommodation, and learning materials for indigent students. Beneficiaries say the support has helped many of them remain in school at a time when economic pressures are forcing some students to drop out.

The foundation has also demonstrated a strong commitment to inclusion by extending scholarship support and learning materials to students living with disabilities. This intervention has been widely commended by education advocates as a step toward ensuring that vulnerable groups are not excluded from opportunities for personal and professional growth.

In the health sector, Maikaya’s foundation, working in collaboration with relevant state institutions, enrolled more than 700 vulnerable residents across the 13 local government areas of Nasarawa State into the State Health Insurance Scheme. The beneficiaries, largely women, children, and persons living with disabilities, now have access to basic healthcare services that would otherwise be beyond their reach.

Health professionals and community leaders note that such interventions reduce preventable deaths, improve productivity, and contribute to overall social stability, key indicators often assessed by development partners and investors.

Community infrastructure has equally benefited from the foundation’s interventions. In Toto Local Government Area, the donation of a 500KVA transformer significantly improved electricity supply, boosting small-scale businesses, artisanship, and household activities.

Residents say the improved power supply has enhanced commercial activities and reduced reliance on expensive alternatives.

Similarly, in Karu Local Government Area, Maikaya donated high-powered solar energy systems to the building materials market situated in Mararaba to support it’s community facilities. The intervention not only improved access to clean and reliable energy but also highlighted the growing relevance of renewable energy solutions in grassroots development.

Traders at the Mararaba Building Materials Market, including the market chairman, Sir Christopher Ibeh, expressed profound appreciation for the donation of high-powered solar energy systems by Alhaji Dr. Muhammed Maikaya.

Speaking during the commissioning of the project, Sir Ibeh highlighted the dramatic transformation the market has experienced since the installation of the solar-powered lights. According to him, areas that were once shrouded in darkness after sunset, making them unsafe and discouraging for traders and buyers alike, are now brightly illuminated.

“The lights have not only enhanced visibility but have also instilled a renewed sense of confidence and security among the traders and their customers. He said.

Many traders echoed Sir Ibeh’s sentiments, noting that the market, which previously became almost deserted in the evenings, now thrives late into the night.

The improved lighting has enabled vendors to extend their trading hours, attract more buyers, and significantly reduce incidents of theft and other security concerns that were common in the past.

Several traders emphasized that beyond the physical illumination, the gesture represents a broader commitment to community development and grassroots empowerment, explaining how targeted interventions like this can improve livelihoods and foster economic growth at the local level.

Analysts note that such projects, though community-based, contribute to a broader narrative of sustainability and innovation qualities increasingly associated with states seeking global relevance.

Acknowledging Government Efforts on Security and Infrastructure, at several public engagements, Maikaya has been deliberate in acknowledging the role of the state government in creating an enabling environment for grassroots initiatives.

He has openly commended Governor Abdullahi Sule for prioritising security across Nasarawa State, particularly noting the relative peace and improved security situation in the state.

According to him, sustained security efforts by the government have been critical in allowing community programmes, sporting events, and humanitarian outreaches to take place without disruption.

Maikaya has also praised the administration’s infrastructure drive across the three senatorial zones, citing landmark projects such as the Lafia, Akwanga, and Keffi flyovers, as well as ongoing efforts to connect rural communities through road construction and rehabilitation.

“These projects are opening up communities, improving mobility, and strengthening economic activities. When rural and urban areas are equally connected, development becomes more inclusive,” he noted.

One of the most striking elements of Maikaya’s grassroots engagement is his consistent focus on youth empowerment. In a state where young people constitute a significant proportion of the population, initiatives that promote skills development, sports, mentorship, and entrepreneurship are increasingly seen as strategic investments rather than short-term interventions.

Through organised sports, training programmes, mentorship platforms, and community engagement, youths are presented not as liabilities but as partners in development and future leaders.

Importantly, Maikaya has repeatedly emphasised that all interventions carried out through the Maikaya Development Foundation are funded entirely from his personal resources. He has never held any political office, nor occupied any public position of responsibility at the state or federal level.

He has also never executed government contracts or benefited from government patronage in any form. According to him, the Foundation’s activities are driven purely by a sense of civic duty and personal conviction that meaningful development should not wait for public office or political advantage.

“Everything we do is from personal sacrifice and commitment to the people,” he has stated on several occasions, stressing that service to humanity should stand independent of power, privilege, or access to government resources.

A Lafia-based political analyst, Dr. Emmanuel Tsoho, explained the broader implication, “When youths are empowered and meaningfully engaged, it sends a strong signal about the future of a state.

It reflects energy, innovation, and sustainability, qualities that investors and development partners look for.”
Several beneficiaries of Maikaya-supported initiatives have since become informal ambassadors of Nasarawa, sharing their experiences during inter-state competitions and on social media platforms.

A young footballer from Doma captured this shift in perception.“When teams come from other states and see our organisation and support, they respect Nasarawa. It changes how people see us,” he said.

Community elders argue that humanitarian interventions and youth engagement efforts contribute directly to social stability, an essential foundation for development and external engagement.

“Peace and care for the people are the strongest advertisements of any state,” a traditional ruler from Awe observed. “When communities are stable and people feel supported, outsiders feel confident to come, invest, and partner.”
Such sentiments align with Maikaya’s belief that development must be holistic, addressing social welfare alongside infrastructure, governance, and economic growth.

In today’s interconnected world, state branding is no longer the exclusive preserve of government institutions. Foundations, private citizens, and community leaders increasingly play complementary roles in shaping public perception.

Through sustained grassroots engagement, Maikaya has become one of several actors projecting Nasarawa’s story of peace, potential, and people-focused development. Social media posts, news reports, and word-of-mouth accounts of his initiatives are gradually shaping how the state is viewed beyond its borders.

A Lagos-based businessman who attended a football tournament in Toto reflected on this evolving image.
“I used to think Nasarawa was quiet and underdeveloped. What I saw here changed my mind. There is organisation, talent, and a strong sense of community. It made me see the state differently,” he said.

As conversations about development and leadership continue within Nasarawa State, observers note that grassroots-driven initiatives such as those championed by Maikaya complement broader government efforts. They help bridge gaps, strengthen community trust, and reinforce the idea that development is a shared responsibility.

By aligning humanitarian action with community needs and acknowledging existing government structures, such initiatives contribute to continuity rather than division, cooperation rather than competition.

In marketing Nasarawa State through action rather than rhetoric, Maikaya is strengthening community bonds while contributing to a broader narrative of a state steadily positioning itself for relevance on the globe.

The Rivers Peace Agenda Forum (RPAF) has sent an urgent “Save Our Soul” appeal to President Bola Ahmed Tinubu, warning that Rivers State is under sustained political siege orchestrated by Federal Capital Territory Minister Nyesom Wike and his loyalists.

The forum described today’s fresh impeachment proceedings against Governor Siminalayi Fubara as a direct assault on democratic governance and the collective will of the people of Rivers State.

In a statement released this evening, the RPAF condemned the impeachment notice read on the floor of the Rivers State House of Assembly by lawmakers widely regarded as being under Wike’s control.

“We, the concerned citizens, elders, and stakeholders united under the Rivers Peace Agenda Forum, are raising this SOS to Mr. President and Commander-in-Chief because our dear state is being held hostage by undemocratic forces,” the statement declared.

“The impeachment move initiated today against Governor Siminalayi Fubara is a brazen affront to the institution of democracy in Rivers State. It is a calculated attempt to overthrow the people’s mandate through the backdoor and impose chaos for selfish political interests.

“This latest action is only the most recent chapter in a prolonged campaign to destabilize the administration of Governor Fubara. Since the political disagreement emerged, Minister Wike has remotely directed a faction of the Assembly to act in ways that paralyze governance and deny Rivers people the dividends of democracy.

“The peace agreement personally brokered by President Tinubu in 2023 was meant to restore calm and allow governance to thrive. Regrettably, that accord has been repeatedly violated by Wike’s camp, with lawmakers loyal to him refusing to honour its provisions and instead pursuing actions that deepen division.

“Today’s impeachment notice is proof that the forces opposed to peace and progress will stop at nothing. They have turned the House of Assembly into an instrument of vendetta rather than a platform for lawmaking and oversight in the interest of Rivers people.

“We are particularly pained that this siege continues despite Governor Fubara’s demonstrated commitment to peace, development, and inclusive governance. His administration has focused on delivering projects, paying salaries promptly, and uniting the state, yet it faces relentless attacks from those who cannot accept the reality of a new leadership.

“Mr. President, we appeal to you as father of the nation to intervene decisively. Rivers State cannot continue to bleed because of one man’s unwillingness to let go of power. Rein in those using federal influence to undermine a sitting governor elected by the people.”

The forum called on President Tinubu to enforce strict compliance with the 2023 peace accord, protect democratic institutions in Rivers State, and ensure that no individual is allowed to hold an entire state to ransom.