President Bola Tinubu has approved the cancellation of about $1.42 billion and N5.57 trillion in outstanding debts owed by the Nigerian National Petroleum Company Limited (NNPC Ltd) to the Federation Account, a move that significantly reshapes the fiscal relationship between the state-owned oil firm and the federal government.

The approval was contained in a document issued by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and presented at the Federation Account Allocation Committee (FAAC) meeting held in November 2025. The development was disclosed in a statement published on Monday on the official X page of the Presidency.

“President Bola Ahmed Tinubu has approved the cancellation of a substantial portion of NNPC Ltd’s outstanding debts owed to the Federation Account, effectively wiping out approximately $1.42 billion in legacy obligations,” the statement said.

Scope of the debt cancellation

According to the document, the cancelled liabilities relate to legacy obligations incurred by NNPC Ltd up to December 31, 2024. These include debts arising from production sharing contracts (PSCs), domestic crude oil supply obligations, repayment agreements, modified carry arrangements, as well as joint venture and PSC royalty receivables owed to the Federation.

The presidency said the decision followed recommendations by the Stakeholder Alignment Committee, which was established to reconcile long-standing debts between NNPC Ltd and the Federation Account. It added that the necessary accounting adjustments have already been effected to reflect the write-off.

However, the government clarified that obligations incurred between January and October 2025 were excluded from the cancellation. Those debts remain outstanding and are being actively tracked and recovered.

Reform push amid scrutiny

The debt write-off comes as the Tinubu administration continues reforms in the oil and gas sector, aimed at resolving legacy financial issues, stabilizing public revenues and improving transparency at NNPC Ltd, which was commercialized under the Petroleum Industry Act.

In recent years, the national oil company has faced sustained criticism over governance, transparency and accountability, particularly amid Nigeria’s fuel supply challenges and declining oil output.

The latest report by the Auditor-General of the Federation, published in September and recently submitted to the National Assembly, highlighted what it described as systemic violations of financial regulations within NNPC Ltd. The audit cited weak internal controls, unexplained payments and irregularities linked to controversial contracts.

The report accused the company of fund misappropriation, inflated contracts, irregular payments and failure to deduct and remit statutory taxes.

One example cited was NNPC’s failure to deduct the statutory one percent stamp duty on payments totaling N24.7 billion and $52.98 million made to contractors and service providers. According to the audit, this resulted in unpaid taxes of N247 million and $529,863. The anomalies, which occurred between 2020 and 2021, involved more than $51 million in questionable settlements.

Unresolved under-remittance dispute

The NUPRC document presented at FAAC also referenced a separate and long-running dispute over an alleged under-remittance of $42.37 billion between 2011 and 2017. That claim, which has featured in previous audits and legislative reviews, remains unresolved.

NNPC Ltd has consistently rejected the allegation, insisting that all revenues due to the Federation during the period were properly accounted for.

“A separate, long-running dispute over an alleged under-remittance of $42.37 billion (2011–2017) remains unresolved, with NNPC Ltd rejecting the claims and insisting all revenues were properly accounted for,” the presidency said.

The debt cancellation eases pressure on NNPC Ltd’s balance sheet and could improve cash flow for the commercialized entity, but it also raises fresh questions about accountability and the long-term handling of public oil revenues. Analysts say the move underscores the scale of legacy financial entanglements in Nigeria’s energy sector, even as the government pushes for stricter oversight and reform.

The challenge for the Tinubu administration now lies in ensuring that new obligations do not add to the pile of unresolved debts, while outstanding audit issues and disputes over past remittances are conclusively addressed.

Nvidia has completed a $5 billion investment in Intel, finalizing a closely watched transaction that underscores both Intel’s financial strain after years of strategic missteps and Nvidia’s growing influence across the global semiconductor ecosystem.

In a filing on Monday, Intel confirmed that Nvidia purchased more than 214.7 million Intel common shares at a price of $23.28 per share, in line with the terms announced in September. The shares were acquired through a private placement, giving Nvidia a significant minority stake in the U.S. chipmaker at a time when Intel is undergoing one of the most difficult transitions in its history.

The deal had already received regulatory clearance, with U.S. antitrust agencies signing off earlier in December. A notice posted by the Federal Trade Commission indicated that the investment did not raise immediate competition concerns, despite Nvidia’s dominant position in artificial intelligence chips and Intel’s central role in both chip design and manufacturing.

The transaction is widely viewed as a crucial financial lifeline for Intel. The company has spent the past several years grappling with lost technological leadership, delays in advanced manufacturing processes, and fierce competition from rivals such as AMD and TSMC. At the same time, Intel has embarked on an ambitious and costly strategy to rebuild its manufacturing base, committing tens of billions of dollars to new fabrication plants in the United States and Europe as it seeks to become a major contract chipmaker for external customers.

Those capital-intensive expansions have weighed heavily on Intel’s balance sheet, draining cash flow and putting pressure on margins. The Nvidia investment provides a significant infusion of capital that can help support Intel’s turnaround plans, shore up investor confidence, and complement government subsidies Intel has secured under U.S. and European semiconductor industrial policies.

Nvidia, by contrast, is entering the deal from a position of exceptional strength. The company has surged to become the world’s most valuable firm, fueled by explosive demand for its AI accelerators, which are now the backbone of data centers powering large language models and other AI systems. While Nvidia does not manufacture chips itself and relies heavily on Taiwan Semiconductor Manufacturing Company, its investment in Intel signals a strategic interest in reinforcing the broader U.S. semiconductor supply chain.

Although neither company has described the transaction as a strategic partnership, the deal deepens financial ties between the two firms that have traditionally competed in data center processors and other segments. Analysts say Nvidia’s move may also be interpreted as a vote of confidence in Intel’s long-term manufacturing ambitions, particularly as geopolitical tensions and U.S. policy increasingly prioritize domestic chip production.

Market reaction to the completion of the deal was subdued. Nvidia shares slipped about 1.3% in premarket trading, while Intel stock was little changed, suggesting investors had largely priced in the transaction since its announcement in September.

The investment comes at a time when the semiconductor industry is being reshaped by artificial intelligence, geopolitical rivalries, and government intervention. Washington has made semiconductor self-sufficiency a strategic priority, encouraging private capital to complement public funding. Intel sits at the center of that effort, but execution risks remain high.

However, by finalizing the $5 billion share purchase, Nvidia has reinforced Intel’s near-term financial position while positioning itself closer to the policy and industrial currents reshaping the chip sector. Another highlight of the deal is that in today’s semiconductor landscape, fierce competitors can also become strategic partners as the industry adapts to unprecedented technological and political change.

In mid-2025, when the U.S. president Donald Trump presented his sweeping tax package dubbed “One Big Beautiful Bill, it swiftly became a subject of controversy – even from his close allies.

Now, Reuters reports that economists are increasingly pointing to the tax package as a central force shaping the trajectory of the U.S. economy in 2026, with wide-ranging implications for households, businesses, and federal finances.

The legislation locks in and expands major elements of Trump’s 2017 Tax Cuts and Jobs Act, removing the looming expiry of several provisions and injecting fresh incentives aimed at boosting consumption, investment, and hiring. Analysts say the combined effect is likely to show up quickly, particularly in early 2026, when taxpayers begin to feel the impact through larger paychecks and refunds.

For individuals, the changes amount to a broad reset of the personal tax landscape. The law makes permanent the lower individual income tax rates introduced in 2017, which were previously scheduled to expire at the end of 2025. It also extends the higher standard deduction and expands relief from the alternative minimum tax, while lifting the estate tax exemption from $14 million to $15 million.

Beyond extending existing cuts, the bill introduces a series of targeted breaks that directly affect take-home pay. Workers who earn tips will be exempt from federal taxes on up to $25,000 of tipped income through 2029, a provision that phases out for earners above $150,000. The exemption excludes certain categories, such as automatic service charges and tips linked to pornographic activity.

Overtime pay receives similar treatment, with up to $12,500 exempt from taxation until 2029, again subject to income phase-outs. Older Americans also stand to benefit, with a new deduction of up to $6,000 for people aged 65 and above over the same period.

The law also targets specific spending decisions. Interest payments on auto loans of up to $10,000 will qualify for a tax break until 2029, but only for personal vehicles assembled in the United States, reinforcing the administration’s domestic manufacturing agenda.

One of the most politically sensitive provisions involves state and local taxes. The cap on SALT deductions is raised sharply from $10,000 to $40,000 through 2029, a change that disproportionately benefits higher-income households in high-tax states such as New York, New Jersey, and California. Economists say this could provide a meaningful boost to disposable income in those regions, though critics argue it tilts relief toward wealthier taxpayers.

On the business side, the bill is heavily weighted toward encouraging investment. The lower corporate tax rate from the 2017 law is made permanent, eliminating uncertainty that had been hanging over boardroom planning decisions. More significantly, companies regain the ability to fully expense certain equipment purchases, allowing them to deduct the entire cost immediately rather than spreading it over several years. This provision had begun phasing out in 2023 and was set to disappear entirely by 2027.

Research and development also receive a major boost. Firms can once again fully expense U.S.-based R&D costs, a change independent tax experts widely regard as one of the most effective ways to stimulate productivity and long-term growth. Small businesses are given additional relief, with the option to retroactively deduct R&D expenses incurred since 2022, potentially unlocking cash flow for expansion.

The law also relaxes limits on interest deductions. Restrictions introduced in 2022 tightened the calculation to earnings before interest and taxes, excluding depreciation and amortization. The new legislation broadens the definition again, making it easier for capital-intensive firms to deduct financing costs.

Owners of pass-through businesses — a vast category that includes freelancers, family-owned restaurants, law firms, medical practices, hedge funds, and private equity firms — see their tax break extended and expanded. Eligible owners can continue deducting up to 20% of their income, lowering effective tax rates. Views on the economic impact of this provision remain split. While supporters say it supports entrepreneurship, the nonpartisan Tax Policy Center has said there is little evidence the deduction meaningfully boosts growth.

Taken together, economists expect the package to act as a short- to medium-term stimulus, with households likely to increase spending as withholding levels adjust and refunds rise. Businesses, meanwhile, may accelerate investment and hiring decisions, particularly in sectors that rely heavily on equipment and R&D.

At the same time, the scale of the tax cuts has renewed debate over fiscal sustainability. With deficits already elevated, critics warn the bill could add to long-term debt pressures unless offset by stronger growth or future spending restraint.