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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.
Thank you.
[Questions]
Signed:
Dr Julius Osagie Eromonsele
Executive Director,
Centre for Energy Governance and Public Finance Accountability
News
CHIEF AMB. EKA DICKSON A’ADU SALUTES GOVERNOR ALIA AT 60
Chief Ambassador Eka Dickson A’adu, the Chief Executive Officer of Ekason Groups of Companies — a reputable conglomerate with diverse interests spanning commerce, real estate, trade, and community development — and a distinguished community leader of Benue State extraction, has risen with a heart full of gratitude and admiration to celebrate His Excellency, Rev. Fr. Dr. Hyacinth Iormem Alia, the Executive Governor of Benue State, as he marks his 60th birthday — a golden milestone in the life of a man who has become synonymous with transformation, courage, and servant leadership. Chief Amb. Eka, a man who has long held the conviction that a governor who builds roads builds futures and a leader who bridges divides builds a people, found in Governor Alia the living proof of that conviction — a builder and a bridge-maker in the truest and most literal sense of both words.
In a heartfelt tribute made available to this publication, Chief Amb. Eka described Governor Alia as a rare breed of leader — one whose footprints are not found in the pages of press releases alone, but etched permanently in the concrete of roads, the steel of bridges, and the grateful hearts of millions of Benue people who can today travel with dignity, conduct business with ease, and look upon their state capital with well-deserved pride.
When Governor Alia assumed office on the 29th of May, 2023, the streets of Makurdi told a tale of neglect — potholed, waterlogged, and weary. Yet with the single-minded focus of a man on a divine assignment, he wasted no time. He simultaneously flagged off the construction of sixteen township roads within the Makurdi metropolis, a feat that stunned critics into silence and set the tone for what was to become a legacy of unparalleled infrastructure renewal. That number has since grown to over fifty road projects cascading across Benue State like arteries of progress — connecting communities, opening markets, and restoring the dignity of a people who had long navigated the indignity of impossible terrain. As a businessman whose operations span multiple sectors and who travels regularly across the length and breadth of the state, Chief Amb. Eka affirmed with firsthand authority that the roads now being laid in Makurdi, Gboko, and beyond are a testament to a governor who truly means business.
Beyond the roads themselves, Chief Amb. Eka was emphatic that the construction of modern underpasses and overhead bridges in both Makurdi and Gboko represents the boldest expression yet of Governor Alia’s transformative vision. The flyover at the High-Level roundabout in Makurdi and the underpass at Gyado Junction in Gboko were not merely engineering projects — they were declarations. They declared that Benue State had arrived on the map of modern infrastructure, that its cities deserved the same dignity afforded to any other state capital in the federation, and that the era of traffic gridlock strangling commerce and daily life was firmly over. For a state that had languished in infrastructural stagnation for years, these structures stand as enduring monuments to what becomes possible when leadership is purposeful, courageous, and unafraid to dream big. Every morning that motorists ease through those underpasses and over those bridges, they move through a corridor built from a governor’s sacrifice, commitment, and unyielding love for his people.
Chief Amb. Eka equally praised Governor Alia for understanding that great governance does not stop at the gates of the state capital. The Governor’s administration has pursued an ambitious programme to link virtually all Local Government Area headquarters across Benue State to Makurdi through quality, durable roads — roads that do not surrender to the first rains but are built to serve generations yet unborn. Of particular note, and one that Chief Amb. Eka described as touching his heart most deeply, is the ongoing reconstruction of the Oju-Awajir road. This vital corridor, which had for years condemned the people of Oju and surrounding communities to near-isolation, is being transformed into a modern thoroughfare worthy of the industrious people it serves. Its completion, he noted, will not only ease the movement of goods and persons but will unlock the enormous agricultural and economic potential of those communities, weaving them permanently into the fabric of Benue’s development story. “This,” he declared, “is governance with a conscience.”
To understand Governor Alia the builder, Chief Amb. Eka noted, one must first appreciate Governor Alia the man. Born on the 15th of May, 1966, in the quiet hills of Mbangur, Mbadede in Vandeikya Local Government Area, and educated across some of the finest institutions in Nigeria and the United States of America — including a Master’s degree in Religious Education from Fordham University, Bronx, New York, and a Master’s in Biomedical Ethics from Duquesne University, Pennsylvania — Governor Alia is a leader shaped by intellectual rigour, spiritual discipline, and a lifetime of humanitarian service. He did not arrive at Government House as a career politician seeking personal comfort. He arrived as a servant leader carrying the full and solemn weight of a people’s hope. His inaugural declaration — “You were waiting for Hope” — was not political theatre. It was a covenant. And on this, his 60th birthday, that covenant is being honoured visibly and verifiably on every newly tarred road, every standing bridge, and in every community now within reach of Makurdi and of opportunity.
Chief Amb. Eka Dickson A’adu himself is no stranger to the weight of responsibility and the demands of leadership. Hailing from a family with deep roots in the commercial and philanthropic life of Benue State, he has built Ekason Groups of Companies into a reputable institution serving the people of the state and beyond across multiple sectors. His business philosophy has always been anchored on one conviction: when the land prospers, its people prosper, and when its people prosper, enterprise thrives. It is from this vantage point — as a businessman, a community leader, and a proud Benue son — that he stands to celebrate Governor Alia, affirming that the Governor’s developmental strides have not only transformed the state’s infrastructure but have improved the business climate, reduced logistics costs, and opened fresh corridors of opportunity for entrepreneurs, traders, farmers, and small business owners across Benue State.
In his own words, Chief Amb. Eka closed with a solemn, public, and unequivocal pledge:
“Your Excellency, on this milestone birthday, I make this pledge publicly and unequivocally: I stand fully behind you. I pledge my unwavering support — moral, social, and material — for your re-election bid in 2027. Benue State cannot afford to interrupt a journey that has only just found its stride. The roads you are building must be completed. The bridges you have raised must be maintained. The vision you carry must be seen to its fullest fruition. May God Almighty grant you many more years of health, wisdom, and the strength to serve. Happy 60th Birthday, Your Excellency. The Heart of the Nation beats proudly because of you.”
— Chief Amb. Eka Dickson A’adu
Chief Executive Officer, Ekason Groups of Companies
Community Leader & Philanthropist, Benue State
News
Prof. Ali Ahmad Scales PDP Governorship Screening, Eyes Kwara Governorship
Former Speaker of the Kwara State House of Assembly, Prof. Ali Ahmad, has successfully passed the governorship screening exercise conducted by the Peoples Democratic Party’s (PDP) National Working Committee (NWC), marking a significant step in his bid to govern Kwara State in the 2027 general elections.
The screening, held at the party’s National Secretariat, Wadata Plaza, Abuja, was conducted in line with the PDP’s internal guidelines and preparatory processes ahead of the 2027 electoral cycle. Prof. Ahmad, who distinguished himself as a former Speaker of the Kwara State House of Assembly, sailed through the NWC screening process, further cementing his standing as one of the party’s most credible and experienced aspirants in the state.
His emergence from the exercise has been received with enthusiasm among party loyalists and supporters across Kwara State, who regard him as a tested hand in both governance and party administration. His passage through the rigorous process is widely seen within the party as a strong signal of his readiness for the task ahead.
Speaking on the development, Sa’ad Ayinde, Media Assistant to Prof. Ali Ahmad, described the successful screening as a further validation of Prof. Ahmad’s credentials. “His conduct throughout the process once again reflects his maturity, competence, and unwavering dedication to the unity, progress, and success of the PDP,” Ayinde said.
With a wealth of legislative and public service experience behind him, Prof. Ahmad is increasingly regarded as a formidable contender in the PDP’s plans to reclaim the Kwara State Government House. Political watchers in the state will be keenly observing how his campaign takes shape and whether the PDP can consolidate its structures around his candidacy to mount a credible challenge ahead of 2027.
Signed: Sa’ad Ayinde
Media Assistant to Prof. Ali Ahmad, Former Speaker, Kwara State House of Assembly
News
Lawyers Faults Case Against Alison-Madueke, Insists Allegations Remain Unproven
The League of Legal Practitioners of Nigeria (LOLPON) has defended former Minister of Petroleum Resource, Mrs. Diezani Alison-Maduke who is facing prosecution at UK court, saying nothing has been proven against her as the burden of proof has not been discharged. She was a minister during the reign of ex-President Goodluck Jonathan.
According the speech titled ‘A legal examination of the trial of Diezani Alison-Madueke and the imperative of justice under Nigerian and United Kingdom law’, delivered by LOLPON at a press conference in Abuja on Thursday, the essential elements of the alleged offences remain unestablished, because the material contradictions have created overwhelming reasonable doubt, adding that justice must be evidence-based, impartial and must not be presumed.
“We call on the United Kingdom judicial authorities to ensure that this matter is determined strictly in accordance with the law, free from bias, conjecture, or external pressure”.
Speaking further, the group said: The League of Legal Practitioners of Nigeria (LOLPON) has undertaken a comprehensive legal review of the ongoing trial of Nigeria’s former Minister of Petroleum Resources, Diezani Alison-Madueke, currently before a United Kingdom court.
“Our position is strictly legal, objective, and grounded in established principles of law.
“After a careful and dispassionate review of the facts available in the public domain, we state clearly and unequivocally that nothing has been proven against the Defendant. Allegations remain allegations. In law, they do not translate to guilt until proven beyond reasonable doubt. That threshold, as it stands today, has not been met”.
The group said under the Human Rights Act 1998 and Article 6(2) of the European Convention on Human Rights, every accused person is presumed innocent until proven guilty, and that this is not symbolic, binding. It said the Defendant has consistently denied all allegations, and the burden lies entirely on the prosecution, and at this stage, that burden has not been discharged.
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“Failure to establish the elements of bribery under the UK Bribery Act 2010, a conviction requires clear proof of a financial or material advantage, a direct link to improper conduct, a clear intention to influence official decisions.
“However, critical gaps remain alleged bribe payers have denied making any payments, there is no conclusive linkage between alleged benefits and contract awards, no direct evidence of corrupt intent has been established, and this leaves the prosecution’s case legally fragile”, the group alleged.
Speaking further, the group said that both Nigerian and UK law require proof of the act and the intention.
“There is no conclusive evidence that the Defendant demanded, received, or intended to receive bribes in exchange for official actions. Without these, criminal liability cannot arise”.
It said, under Nigerian procurement practices and administrative culture, contract awards are institutional, not personal as so ministers do not act in isolation; stakeholder interactions between contractors and government officials are not unusual within regulated boundaries.
“It is also important to state that in certain operational contexts, contractors often provide logistical support within the framework of ongoing engagements. Such interactions, in themselves, do not automatically constitute criminal conduct under Nigerian law unless tied directly to proven corrupt intent”, the group added.
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