Business • Created December 9, 2025 02:20

NUPRC urged to release Frontier Exploration Fund

The Nigerian Upstream Petroleum Commission (NUPRC) has been urged to release the Frontier Exploration Fund (FEF), a statutory pool meant to finance exploration in under-explored basins across the country. A statement by Charles Uzoma, an oil and gas stakeholder management consultant, said billions of Naira have accrued to the fund, yet the NUPRC is not […]

NUPRC urged to release Frontier Exploration Fund

The Nigerian Upstream Petroleum Commission (NUPRC) has been urged to release the Frontier Exploration Fund (FEF), a statutory pool meant to finance exploration in under-explored basins across the country.

A statement by Charles Uzoma, an oil and gas stakeholder management consultant, said billions of Naira have accrued to the fund, yet the NUPRC is not in a hurry to deploy these resources as mandated by the Petroleum Industry Act (PIA).

The statement said Section 9(4) of the PIA establishes the Frontier Exploration Fund and mandates that 30 per cent of NNPC Limited’s profit oil and profit gas under PSCs and similar arrangements be channelled into the Fund.

“In the first nine months of 2025 alone, NNPCL generated N801.3 billion for Management Fees and the FEF, representing 56.5 per cent of the annual projection. Section 64(c) further ensures that PSC profit oil and gas cannot reach the federation without first deducting the statutory 30 per cent for the FEF and management fees.

It said these provisions make the flow and use of FEF money non-discretionary. In simple terms, the money must enter the escrow account, and it must be used for exploration.

“Both FEF and Management Fees received N400.667 billion each during the period. Industry checks indicate that about $600 million has already been accumulated in the FEF escrow account. The national oil company has kept its side of the bargain. What remains missing is timely mobilisation and deployment of these funds by NUPRC.”

“In a recent intervention, the Minister of Petroleum Resources (Oil), Heineken Lokpobiri, publicly directed NUPRC and NNPCL to immediately deploy the accrued FEF to support seismic and appraisal work in frontier basins. He lamented that, since assuming office, the Fund has not been meaningfully used for its intended purpose,” the statement added.

The expert added, “

The Petroleum Industry Act (PIA) was enacted to fix long-standing structural gaps in Nigeria’s oil and gas sector. Among its strongest innovations is the creation of the Frontier Exploration Fund (FEF) — a statutory pool meant to finance exploration in under-explored basins across the country. Today, billions of Naira have accrued to the Fund, yet the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) seems not in a hurry to deploy these resources as mandated by law. The consequences may be too costly to ignore.

What the Law Says

The PIA sets out a straightforward framework for funding and exploring Nigeria’s frontier basins:

  • Section 9(4) establishes the Frontier Exploration Fund and mandates that 30 per cent of NNPC Limited’s profit oil and profit gas under PSCs and similar arrangements be channelled into the Fund.
  • Section 9(5) requires that these remittances be transferred into a dedicated escrow account and used strictly for frontier exploration and development, subject to appropriation by the National Assembly.
  • Section 9(1) gives NUPRC the duty to promote frontier-basin exploration, undertake basin studies, and evaluate frontier acreages.
  • Section 64(c) further ensures that PSC profit oil and gas cannot reach the Federation without first deducting the statutory 30 per cent for the FEF and management fees.”

But reacting, the NUPRC denies withholding Frontier Exploration Fund, says over $185m, N14.9bn released to NNPCL.

NUPRC’s Head of Media and Strategic Communication, Eniola Akinkuotu, said $185.1m had been approved along with N14.9 billion.

 

“The NUPRC explained that the Frontier Exploration Fund was not domiciled in the commission but in an account controlled by the Central Bank of Nigeria. The Commission added that its role was simply to evaluate the Work Programme submitted by NNPCL after which an approval would be given for the release of the fund.”

 

 

 

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