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Governors vs NNPC: Tension rise over alleged $42bn oil revenue shortfall

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A renewed clash has emerged between the Nigerian National Petroleum Company Limited and Periscope Consulting, the audit firm hired by the Nigeria Governors’ Forum to examine an alleged under remittance of oil revenue totalling $42.37bn (about N12.91tn) to the Federation Account between 2011 and 2017.

The dispute, revived by fresh submissions from both sides, has forced the Federation Account Allocation Committee to mandate a joint reconciliation session to determine the true state of remittances and resolve the long-running impasse.

This was disclosed in the Federation Account Allocation Committee’s post-mortem review for November 2025, which detailed fresh exchanges between both parties over the alleged unremitted fund. The document was obtained by our correspondent on Tuesday.

Recall that in October, The PUNCH reported an extension of the ongoing probe and reconciliation of payments made by revenue-generating agencies, including the Nigerian National Petroleum Company Limited, to December 2024, following unresolved discrepancies in remittances. It also examined allegations that NNPC Limited failed to remit $42.37bn (about N12.9tn) in oil revenue to the Federation Account during the 2011–2017 period.

The review follows findings by Periscope Consulting, a firm engaged by the Nigeria Governors’ Forum, which had earlier accused the state oil company of withholding crude oil proceeds and other statutory revenues due to the Federation Account during the period.

But in the new document, the FAAC Sub-Committee confirmed that NNPCL had formally rejected the audit findings, insisting that no outstanding revenue is owed to the Federation Account for the period under review. The national oil company maintained that all crude oil proceeds and associated earnings were fully accounted for, disputing Periscope’s claims of significant underpayment.

But Periscope Consulting flatly disagreed with NNPC Limited’s defence, maintaining that its audit uncovered substantial gaps in remittances and that the alleged $42.37bn shortfall remained unresolved.

The report read, “UPDATE ON NNPC’S ALLEGED UNDER REMITTANCES TO FEDERATION ACCOUNT OF $42,373,896,555.00.

“NNPC Limited submitted their response regarding $42,373,896,555.00 under remittance to the Federation Account as contained in the report of Periscope Consulting. Recall that Periscope Consulting was the Consultant engaged by the Governors’ Forum to examine NNPC Limited under remittance to the Federation Account.

“NNPC Limited responded that all revenues due to the Federation have been properly accounted for and no outstanding amounts for the period under review.”

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This disagreement has pushed both sides into a stalemate, with the consultants accusing the oil company of providing explanations that do not reconcile with the audited data.

The FAAC sub-committee, noting the conflicting positions, directed that NNPCL and Periscope Consulting must meet jointly to harmonise records and “close out” the matter. It added that the reconciliation process remains ongoing.

“Responding, Periscope Consulting disagreed with NNPCL’s position; hence, the Sub-Committee directed that there should be a joint meeting with the two parties to close out on the issue. This assignment is work in progress,” it added.

The controversy marks the latest chapter in a prolonged dispute between state governments and the national oil company over transparency in oil revenue flows. In February 2025, FAAC suspended its monthly meeting due to a dispute between state governments and NNPC Limited over outstanding remittances.

The dispute over an estimated N1.7tn in revenues raised concerns over potential delays in revenue disbursement to states, which rely on FAAC allocations for budgetary commitments.

The Governors’ Forum commissioned Periscope Consulting amid complaints that NNPCL’s remittance practices, including handling of crude sales, domestic allocation, subsidy deductions, and JV cash calls, were opaque and inconsistent with expected inflows.

With oil receipts forming the backbone of FAAC disbursements, any alleged shortfall threatens state and local government finances, already strained by rising inflation and shrinking real revenue.

NNPC Limited, now operating as a limited liability company under the Petroleum Industry Act, has consistently defended its processes, claiming improved accountability and asserting that independent audits often misinterpret commercial and regulatory procedures governing its operations.

The latest face-off underscores deepening mistrust on both sides and places renewed pressure on FAAC to reconcile the books in the interest of fiscal stability.

Commenting on the issue, renowned Professor Emeritus of Petroleum Economics, Wumi Iledare, said the alleged $42.37bn under-remittance recorded between 2011 and 2017 reflects long-standing flaws in Nigeria’s pre–Petroleum Industry Act regime.

According to him, the former Nigerian National Petroleum Corporation operated with overlapping roles that made revenue reconciliation cumbersome and frequently disputed. Iledare described the controversy as a “legacy problem,” stressing that similar discrepancies can be avoided only through disciplined implementation of the PIA, real-time monitoring, and continuous independent audits.

He added that with transparent data and clear fiscal rules, future remittance disputes should not recur. Speaking in an interview, he said, “The alleged $42.37bn under-remittance from 2011–2017 simply reflects the weaknesses of the old pre-PIA system. The former NNPC had overlapping roles that made revenue reconciliation difficult and prone to disputes.

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“The lesson is clear: fully implement the PIA, strengthen real-time monitoring, and enforce continuous independent audits. With transparent data and clear rules, issues like this should not arise again. It is a legacy problem. The future depends on disciplined implementation of the PIA.”

The Post-Mortem Sub-Committee further queried the NNPC Limited over gaps in its reporting on the utilisation of the 30 per cent Frontier Exploration Fund, a statutory deduction introduced to finance oil and gas exploration in frontier basins.

According to the committee’s review, NNPCL submitted utilisation records for the frontier exploration fund covering the period 2008 to 2024, spanning both the pre- and post-Petroleum Industry Act eras.

However, the sub-committee noted that the documents did not provide project-specific details, including a breakdown of expenditure for each basin where exploration activities were carried out. As a result, the committee wrote to NNPCL requesting a proper reconciliation that links each exploration project to the exact amount spent.

The sub-committee said it is still awaiting the company’s updated submission, adding that the reconciliation remains a work in progress. It explained, “The NNPCL had submitted the utilisation of the frontier exploration fund from 2008-2024, covering both the Pre and Post PIA. However, the Sub-Committee observed that there were no specifics on expenditure incurred on the exploration activities carried out in each of the funds.

“The committee had written to NNPCL requesting it to tie each project carried out within the Basins to the amount expended. The Sub-Committee awaits NNPCL’s response. This assignment is still a work in progress.”

The scrutiny follows a government-led probe into the 30 per cent Frontier Exploration Fund, aimed at ensuring transparency and proper utilisation of billions earmarked for oil and gas exploration across Nigeria’s frontier basins.

In a related development, the committee also reviewed outstanding liabilities owed by NNPCL to the Federal Inland Revenue Service and the Nigerian Upstream Petroleum Regulatory Commission for the period June to December 2023. The outstanding payments, totalling N2.03tn, are to be accounted for by the Office of the Accountant-General of the Federation.

The sub-committee confirmed that the amount has been incorporated into the ongoing reconciliation being handled by the Stakeholders Alignment Committee, which is expected to submit its final report to the Federal Ministry of Finance to conclude the matter.

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Data from FAAC documents show that the outstanding obligations comprise N1.19tn in NUPRC royalties and N843.28bn in FIRS taxes, accumulated over the seven months. Monthly breakdowns indicate the largest liability was recorded in August 2023, amounting to N470.25bn, followed by payments due in October and November.

The World Bank has accused NNPCL of failing to fully remit oil revenues to the Federation Account, thereby undermining fiscal transparency and macroeconomic stability.

The bank noted that while the company was corporatised in 2021 to operate as a commercial entity, it still retains monopolistic control over crude oil sales and foreign exchange inflows, leading to persistent gaps between reported earnings and actual remittances.

“NNPCL has remained a key source of revenue leakages,” the World Bank stated, urging the government to “strengthen oversight, ensure full disclosure of oil proceeds, and improve transparency in federation revenue management.”

The institution said the state-owned company has only been remitting 50 per cent of revenue gains from the removal of the Premium Motor Spirit subsidy to the Federation Account. It said out of the N1.1tn revenue from crude sales and other income in 2024, the NNPCL only remitted N600bn, leaving a deficit of N500bn unaccounted for.

“Despite the subsidy being fully removed in October 2024, NNPCL started transferring the revenue gains to the Federation only in January 2025. Since then, it has been remitting only 50 per cent of these gains, using the rest to offset past arrears,” the World Bank stated.

Since assuming office, the NNPCL Group Chief Executive Officer, Bayo Ojulari, has consistently pledged to entrench transparency, efficiency, and accountability in the company’s operations. He has repeatedly assured Nigerians and the global investment community that the company’s books would be transparent and that its dealings with the Federation Account would be fully compliant with fiscal rules.

However, despite these assurances, legacy issues from previous years, particularly allegations of under-remittance running into tens of billions of dollars, continue to cloud the company’s transparency drive.

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Outrage as EFCC operatives assault UNIUYO doctor, workers over medical report

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Outrage has followed the alleged assault and arrest of four staff members of the University of Uyo Teaching Hospital, Akwa Ibom State, including the Deputy Chairman, Medical Advisory, Effiong Ekpe, a professor of cardiothoracic surgery, during an investigation involving the verification of a medical report submitted by a fraud suspect.

The incident followed a visit to the hospital by operatives of the Economic and Financial Crimes Commission on Tuesday.

PUNCH Online reported that the EFCC operatives arrived at the hospital premises in the afternoon and attempted to arrest a staff member, leading to resistance from workers and other hospital personnel.

Eyewitnesses alleged that the operatives later called for reinforcement and that additional officers fired shots into the air to disperse workers who gathered at the scene.

According to PUNCH Online, the operatives eventually took away Ekpe, and three other staff members.

Some persons were reportedly injured during the incident, while phones were said to have been damaged as workers tried to record the scene.

In a statement obtained by PUNCH Metro on X on Tuesday, the EFCC admitted that its operatives visited the hospital to authenticate a medical report submitted by a suspect standing trial before Justice M.A. Onyetunu of the Federal High Court in Uyo over alleged fraud involving several microfinance banks, including the University of Uyo Microfinance Bank.

“The suspect had presented a medical report which required authentication by the UUTH management. The Commission wrote two different letters, dated March 11, 2026, and April 20, 2026, to the hospital management to this effect without receiving any response,” the agency stated.

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The anti-graft agency noted that its investigating officer later visited the hospital to follow up on the request but still received no response.

“As a last resort, operatives of the commission visited the chief medical director of the hospital on Tuesday to make further enquiries, only to be locked in with a false alarm and subjected to an unprovoked attack by misguided staff of the facility who pelted them with stones and other dangerous objects,” the statement added.

The EFCC also alleged that the hospital management shut the gates against its operatives despite intervention from the police.

“Police authorities in Akwa Ibom State advised the CMD to open the hospital gates to enable the operatives to exit the premises peacefully, but the entreaties were turned down,” it said.

The agency insisted that its operatives acted professionally and did not disrupt hospital activities. It also warned that obstructing lawful investigations could attract legal consequences.

Meanwhile, medical doctors and health workers at the hospital have declared an indefinite strike over the incident.

The chairman of the Nigerian Medical Association in Akwa Ibom State, Dr Aniekan Peters, reportedly directed doctors across the state to suspend services, while the Joint Health Sector Unions also announced a total shutdown of hospital activities in protest.

Speaking on the development, the Public Relations Officer of the NMA in the state, Dr Gabriel Eyo, described the incident as an attack on the hospital and its workers.

“In the early hours of this morning, masked men wearing EFCC jackets stormed into the hospital premises, walked into the office of the Deputy Chairman of the Medical Advisory Committee, Prof. Effiong Ekpe, and beat him to a pulp,” Eyo alleged.

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“They dragged him like a common criminal. When members of staff, students and other health workers tried to resist them, they shot sporadically into the air and dispersed the crowd with tear gas,” he added.

‘Eyo said Ekpe, a professor of cardiothoracic surgery, ‘was allegedly injured during the incident.’

“Whatever he did, there is a due process for this kind of thing. Even criminals are not treated this way. The only thing that should have been done would have been to send an invitation, which was not done,” he stated.

He added that the incident was traumatic for workers and patients, noting that the NMA had begun an indefinite strike in protest.

Reacting to the claims, the Commissioner of Police in Akwa Ibom State, Baba Azare, said police officers only accompanied the EFCC officials to verify the operation after the hospital management contacted him.

“The EFCC went for an arrest in the hospital this morning, and the CMD called me to verify if my men were among those in the hospital,” he said.

Azare explained that he later confirmed from the EFCC that the officers were acting on a court order linked to an ongoing case.

“I called the CMD and advised him to open the gate for them to carry that man because it is a legitimate duty,” he added.

The incident has also sparked reactions on social media, with several Nigerians criticising the EFCC’s conduct and describing it as an excessive use of force.

One X user, Richard David, questioned the agency’s priorities, writing, “When EFCC claimed that they did not know CBEX officials who scammed nearly one million Nigerians were operating, some of you were talking down on the victims. Now the EFCC has burst the safe haven of a hospital where your sick loved ones are and you are shouting?”

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Another X user, identified as @Shaibu, described the incident as “shameful and disgraceful.”

“You came to the hospital requesting their expertise, and somehow you are trying to justify intimidation. Even if the doctor or healthcare worker is the suspect, the EFCC can only arrest when they have a warrant. Choosing not to cooperate with the EFCC is not a crime,” the user wrote.

Another X user, @MaduforUch2532, argued that hospitals operate under strict protocols and security procedures.

“A hospital is not a criminal hideout. Medical institutions have protocols, patient privacy obligations and security procedures. Staff reacting to unidentified masked men within hospital premises is not surprising,” the user stated.

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Coup plotters reached out for spiritual cover — Cleric

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The Federal High Court in Abuja on Monday watched a video recording in which an Islamic cleric, standing trial over the coup plot, told investigators that he warned the suspected conspirators that their plan would fail and that they would eventually be betrayed.

Justice Joyce Abdulmalik also ordered a joint trial-within-trial to determine the voluntariness of statements and video recordings the prosecution sought to tender against the six defendants.

The ruling followed objections by defence lawyers, who argued that the statements were obtained in violation of the Administration of Criminal Justice Act and the Anti-Torture Act.

The Federal Government had on April 22 arraigned six defendants, including a retired major-general, over allegations of treason, terrorism, money laundering and conspiracy to overthrow President Bola Tinubu’s government.

The defendants are Maj-Gen Mohammed Ibrahim Gana (retd.); Navy Capt Erasmus Ochegobia Victor (retd.); police inspector Ahmed Ibrahim; Presidential Villa electrician Zekeri Umoru; Bukar Kashim Goni; and a Zaria-based Islamic cleric, Sheikh Abdulkadir Sani.

They all pleaded not guilty to the 13 charges.

At Monday’s proceedings, prosecution counsel, Rotimi Oyedepo (SAN), informed the court that the fourth prosecution witness remained in the witness box and applied for the playback of a video recording containing the alleged statement of the sixth defendant, Sani.

In the video played in open court, Sani said he knew the alleged ringleader, Col Maaji, for less than one year and was introduced to him through a man identified as Sanda.

The cleric said Sanda approached him for prayers concerning a planned coup and informed him that his “oga” needed spiritual guidance and divination over the success of the operation.

According to Sani, after conducting prayers, he informed them that the operation would fail.

“I warned them the coup would fail,” he said in the recording.

He added that he also told them that two persons involved in the alleged conspiracy would eventually betray the group.

Sani further stated that Sanda later returned with another request for prayers “so that the two individuals would not betray the group.”

The cleric said money was subsequently transferred to him for prayers and charity, while the names of persons allegedly involved in the plot were also sent to him for inclusion in the prayers.

According to him, shortly after the prayers commenced, Sanda informed him that Col Maaji had not been seen for four days.

He added that he later learnt through media reports that arrests had been made over an alleged coup plot.

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Sani, however, maintained in the video that the money transferred to him was not payment for supporting a coup.

“The money was meant for prayers,” he told investigators.

He also admitted that he understood a coup to mean a military overthrow of government, but claimed he did not report the alleged plot because he did not know who to report to.

The cleric narrated that he was later arrested after visiting the Economic and Financial Crimes Commission over restrictions placed on his bank account.

According to him, he discovered that the account had been flagged when he attempted to make withdrawals from the money sent to him.

He said that after contacting an EFCC deputy director, he was invited to the commission’s office, where he explained that the funds were meant for prayers.

Sani also stated in the recording that he did not make any statement relating to a coup while in EFCC custody.

Before the end of the video, the cleric confirmed that nobody assaulted or tortured him and that his “statements were made voluntarily.”

Following the playback, Oyedepo applied to tender extra-judicial statements allegedly made by the first to fifth defendants before a Special Investigation Panel and military police authorities, alongside Sani’s statement before military investigators.

The move was strongly opposed by lawyers representing all six defendants.

Muhammed Ndayako (SAN) appeared for the first defendant, while Paul Erokoro (SAN), A.H. Shehu, C.D. Okafor, M.A. Ibrahim, Olalekan Ojo (SAN), and Sanusi Musa (SAN) represented the other defendants.

The defence lawyers argued that the statements and accompanying video recordings were not voluntarily made and failed to comply with safeguards provided under the ACJA.

Some of the lawyers also relied on provisions of the Anti-Torture Act, 2017, alleging oppression, inducement and coercion during interrogation.

Counsel for the second defendant argued that his client was neither informed of his right to legal representation nor granted access to counsel before his statement was recorded.

The fourth defendant’s lawyer further argued that the video failed to establish whether his client’s legs were free during interrogation, insisting that coercion could not be ruled out.

Ojo, counsel for the fifth defendant, urged the court to order separate trial-within-trial proceedings for each defendant since all the accused persons were disputing the voluntariness of their statements.

Responding, Oyedepo said the prosecution was “not afraid of a trial within a trial.”

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He, however, urged the court to conduct a single joint proceeding instead of separate hearings for each defendant.

After listening to the arguments, Justice Abdulmalik ruled that the court would conduct “a joint trial within a trial to determine the voluntariness of the statements.”

The judge subsequently adjourned the matter till May 12 for continuation of proceedings.

The prosecution had alleged that the defendants planned to attack the Presidential Villa, detain Tinubu and other top government officials, and take control of strategic institutions.

Investigators also alleged that no fewer than 32 vehicles were procured for covert operations linked to the alleged plot.

Relatives protest

Meanwhile, relatives and sympathisers of military officers standing trial over the coup plot staged a peaceful protest at the Federal Ministry of Justice in Abuja on Monday, demanding an open trial and the release of the detained suspects.

The demonstrators, who converged on the ministry’s entrance, chanted solidarity songs and displayed placards bearing inscriptions such as “Tinubu Release Our Heroes,” “Lt Col C Chima 419 Witness,” and “AGF, Stop the Kangaroo Court Martial Now.”

Security personnel, including operatives of the Nigeria Police Force, however, prevented the protesters from gaining access to the ministry premises, restricting them to the entrance gate.

The protest comes amid growing criticism over the handling of the coup trial, particularly after journalists were barred last week from covering proceedings involving some of the accused officers.

Addressing journalists during the protest, the leader of the demonstrators, Justice Isimili, said many of those present were relatives of the detained officers who travelled from different parts of the country.

“Many of the people who turned out today are relatives of our heroes. Some of them came from Jos, Kano and Sokoto to protest the continued detention of the alleged coup suspects who are our fathers, uncles and brothers.

“All we are asking is for the President, who is our father, to temper justice with mercy. We want him to come to our aid. Many of us have not been able to rest or do anything because of our loved ones who are still being held.”

He condemned what he described as the secretive nature of the ongoing court-martial proceedings.

“We want an open trial instead of what they are doing in the name of court martial, where family members, journalists and the public are denied access to the court proceedings. All we are interested in is their freedom,” he added.

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Another protester, Abdullahi Kale, who claimed he travelled from Sokoto for the demonstration, alleged that the continued detention of the suspects was creating the impression that northern military officers were being targeted.

“No freedom, no second term. If the President and the AGF fail to release them, we will mobilise the North against Tinubu’s re-election,” he threatened.

A female protester, Habibat Muhammad, who carried her one-year-old child, Abba, on her back, also appealed for leniency.

Speaking in Hausa, she lamented that life had become difficult for many of the affected families since the suspects were arrested about eight months ago from their homes and military formations.

Responding to the protesters, a director in the ministry, who declined to disclose her name, urged the demonstrators to remain calm and orderly.

According to her, the ministry had yet to receive any formal letter detailing their grievances and demands.

“This is what we told them. They should go back and put their house in order before coming back.

“When you return, let only two persons come with your letter. But if you insist on coming as a group like you did today, it will be misrepresented to mean another thing.”

When pressed to reveal her identity, the official declined.

“On this issue, I can’t give a name. I am just a director in the ministry. What I have only come to offer them is an explanation, which has been done. That is all,” she stated.

The latest protest adds to earlier demonstrations by families of the detained officers, who have repeatedly demanded either their release or immediate arraignment in a transparent and public court process.

The controversy surrounding the trial deepened two weeks ago when journalists were barred from covering bail proceedings involving six of the suspects at the Federal High Court in Abuja.

Court officials, backed by operatives of the Department of State Services, reportedly ordered reporters out of the courtroom shortly before proceedings began.

The suspects are facing charges bordering on treason, terrorism, money laundering and failure to disclose information.

While some serving military officers are being tried before a court-martial in Abuja, others are facing trial in civilian courts.

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ISIS moves operations to West Africa, US warns

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The United States has identified Nigeria and the Lake Chad Basin as critical fronts in its 2026 counterterrorism strategy, warning that extremist groups operating across Africa remain a growing threat to global security.

In the strategy document, the US government said parts of Africa, including West Africa, the Sahel region, the Lake Chad Basin, Mozambique, Sudan and Somalia, have witnessed a resurgence of terrorist activities following the collapse of ISIS strongholds in Iraq and Syria.

The document noted that remnants of the Islamic State and affiliated jihadist groups had relocated to Africa and Central Asia, exploiting ungoverned spaces and weak security structures.

“President Trump unleashed the greatest fighting force the world has ever seen, and within a matter of weeks, a Jihadi insurgency which controlled vast territories across Iraq and Syria was gone.

“Subsequently, the surviving remnants of the world’s most dangerous terrorist group of the modern age were forced to relocate to Africa and Central Asia, in turn exploiting the ungoverned spaces there.

“As a result, today, there are parts of Africa where a resurgent terror threat is the reality. These include in West Africa, the Sahel region, the Lake Chad Basin, Mozambique, Sudan, and of course Somalia, where parts of ISIS have re-established themselves and Al Shabaab maintains its tribal-based Islamist insurgency,” it read.

The US said its major objective in Africa would be to prevent extremist groups from establishing operational bases capable of launching attacks against American interests.

“We will continue to work together with governments threatened by groups like ISIS and al Qaeda affiliates who threaten us as well, and assist them with actionable intelligence and CT partner-force development until our shared foes no longer pose a serious threat to either them or us,” it added.

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The document also declared that the protection of Christians targeted by terrorist groups would remain a key priority of the administration.

According to the strategy, Washington would continue rebuilding bilateral counterterrorism relations with African governments while reducing direct military deployments on the continent.

“We will continue to work together with governments threatened by groups like ISIS and al Qaeda affiliates who threaten us as well, and assist them with actionable intelligence and CT partner-force development,” the document stated.

The strategy criticised previous US foreign policies under former President Joe Biden, claiming they weakened counterterrorism efforts and allowed extremist organisations to regroup across Africa.

Referencing Nigeria specifically, the document praised recent actions taken by President Donald Trump over attacks on Christians in the country.

“With the decisive action President Trump recently took in Nigeria, he made it clear that the slaughter of Christians will not go unchecked,” the document stated.

It quoted Trump as saying on Christmas Day in 2025, “I have previously warned these terrorists that if they did not stop the slaughtering of Christians, there would be hell to pay, and tonight, there was.”

The US also said it would maintain a “light military footprint” in Africa while expecting regional partners to shoulder more of the counterterrorism burden through intelligence sharing and coordinated operations.

According to the strategy, African nations possess “almost limitless potential” if governments are able to exercise effective territorial control and deny safe havens to terrorist organisations and violent extremist groups.

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