The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has clarified the disbursement of funds from the Frontier Exploration Fund to the Nigerian National Petroleum Company Limited (NNPC Ltd). The commission addressed recent reports suggesting that it had withheld the fund, stating that over $185 million and N14.9 billion have been released to NNPC Ltd.
Eniola Akinkuotu, Head of Media and Strategic Communication at the NUPRC, issued a statement emphasizing that the fund has been disbursed as planned, refuting allegations of withheld payments. This disclosure aims to shed light on the utilization of the Frontier Exploration Fund, which has been subject to transparency concerns since the implementation of the Petroleum Industry Act. The Act mandates that 30 percent of NNPC Ltd’s profit from oil and gas be allocated to frontier exploration.
The NUPRC clarified that the Frontier Exploration Fund is not managed directly by the commission. Instead, it is held in an account controlled by the Central Bank of Nigeria. The commission’s role is limited to evaluating work programs submitted by NNPC Ltd and approving the release of funds based on these evaluations.
Fund Allocation and Approval Process
The Frontier Exploration Fund is derived from statutory allocations designated for exploration activities in frontier basins. These funds are intended to enable the national oil company to accelerate oil and gas discovery efforts, particularly in underexplored regions throughout Nigeria.
Akinkuotu elaborated on the process for fund approval, stating, “We approve funds based on certified activities and contracts awarded. So, if a contract has not been awarded, we cannot approve payments.”
To ensure transparency and accountability in the disbursement process, the NUPRC has engaged PricewaterhouseCoopers (PwC) to evaluate NNPC Ltd’s claims before final approval is granted. This measure is designed to provide an independent assessment of the requests for funds and ensure that they align with approved work programs.
Transparency Measures and Denials of Wrongdoing
The NUPRC maintains that it has operated transparently in its handling of the Frontier Exploration Fund. The commission has refuted claims of any outstanding sums owed to NNPC Ltd, stating that the final release of $140 million was approved on November 27, 2025, with documented evidence to support this claim. Prior to this, N14.9 billion and $45 million had already been released.
The NUPRC further encouraged interested parties to seek information directly from NNPC Ltd rather than relying on unnamed sources seeking to damage the commission’s reputation. The commission underscored that the Frontier Fund is exclusively for the use of NNPC Ltd and dismissed any claims made by other operators as unfounded.
Minister’s Rebuttal and Commission’s Stance
The NUPRC also referenced a statement made earlier by the Minister of State for Petroleum, Senator Heineken Lokpobiri, who denied investigating the NUPRC regarding its handling of the fund. The commission described any attempts to reference the alleged investigation as “mischief,” emphasizing that the purported author had already refuted the claims.
In summary, the NUPRC has sought to address concerns surrounding the Frontier Exploration Fund by providing clarity on its role in the disbursement process, highlighting transparency measures, and refuting allegations of withheld funds or wrongdoing. The commission maintains that it has acted responsibly and in accordance with its mandate to support the exploration and development of Nigeria’s oil and gas resources. The engagement of PwC for independent evaluation further underscores the commitment to ensuring accountability in the allocation of these vital funds.
