NUPRC Debunks Claims of Withholding Frontier Exploration Funds, Confirms Release of $185m, N14.9bn

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The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has dismissed recent reports alleging that it is deliberately withholding the Frontier Exploration Fund (FEF) from the Nigerian National Petroleum Company Limited (NNPCL).

Addressing the allegations, Eniola Akinkuotu, the Head of Media and Strategic Communication, in a statement on Monday, December 8, confirmed that the Commission has approved and released a total sum of $185.1 million and N14.9 billion to the NNPCL.

Key Details on Fund Release and Process

The NUPRC explained its role and the fund’s mechanism, emphasising transparency and due process.

The Commission clarified that the Frontier Exploration Fund is not domiciled with the NUPRC, but are held in an account controlled by the Central Bank of Nigeria (CBN).

The upstream regulator said its function is purely regulatory and involves evaluating the Work Programme submitted by the NNPCL before approving the fund’s release.

Clarifying the payment condition, the Commission said funds are approved based on certified activities and contracts duly awarded. “We approve funds based on certified activities and contracts awarded. So, if a contract has not been awarded, we cannot approve payments,” NUPRC stated.

To ensure accountability, the NUPRC said it engaged the international consulting firm PwC to evaluate and certify the NNPCL’s financial claims before final approvals were granted.

Finalized Payments

The Commission asserts that all due funds have now been released. It maintained that there are currently no outstanding sums due for release and stated it possesses documentation to back up all figures.

“The NUPRC approved the final release on November 27, 2025, to the tune of $140,000,000. We have documents to back this up. Earlier, N14.9 billion and $45 million were released.”

The Commission urged anyone interested in verifying the information to contact the NNPCL directly rather than rely on “faceless individuals seeking to tarnish the image of the Commission.”

Why Deploying Frontier Exploration Fund

The Frontier Exploration Fund (FEF) is a dedicated statutory financial resource in Nigeria’s oil and gas sector established under the Petroleum Industry Act (PIA) 2021.

The primary objective of the FEF is to fund and promote oil and gas exploration activities in Nigeria’s frontier basins—areas that are largely under-explored and undeveloped.

This strategic initiative of deploying the fund is to expand oil and gas exploration, increase national reserves, and reduce reliance on the established mature fields, primarily in the Niger Delta.

Experts believe that deploying the fund also helps to attract investments in frontier basins. De-risking the new areas by using public funds for initial, high-risk exploration work (like seismic surveys and geological studies), could make them more attractive for private investment later on.

Funding Mechanism

The FEF receives its money through a mandatory statutory deduction. Section 9(4) of the PIA which establishes the Frontier Exploration Fund and stipulates that 30 per cent of the NNPCL’s profit oil and profit gas derived from Production Sharing Contracts (PSCs) and similar arrangements should be channeled directly into the Fund.

The funds, according to section 9 (5) of PIA, are remitted by NNPCL into a dedicated escrow account (Frontier Exploration Fund Escrow Account) managed under the control of the CBN. The NUPRC is responsible for the overall administration of the Fund.

Frontier basins are under-explored basins, which include inland areas like the Chad Basin, Anambra Basin, Bida Basin, Sokoto Basin, Dahomey Basin, and the Benue Trough.

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Victor EZEJA

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Victor Ezeja is a passionate journalist, scholar and analyst of socioeconomic issues in Nigeria and Africa. He is skilled in energy reporting, business and economy, and holds a master's degree in mass communication.