The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has refuted claims that it is withholding the Frontier Exploration Fund (FEF) from the Nigerian National Petroleum Company Limited (NNPCL), confirming that approved funds have been released.
In a statement signed on Monday by the commission’s Head of Media and Strategic Communication, Eniola Akinkuotu, NUPRC disclosed that $185.1 million and N14.9 billion have been approved for disbursement to NNPCL.
The clarification follows heightened public scrutiny over the utilisation of the FEF, a fund established under the Petroleum Industry Act (PIA) which mandates that 30% of NNPCL’s profit from oil and gas be allocated to frontier basin exploration.
NUPRC explained that the fund is not domiciled with the commission but held in an account managed by the Central Bank of Nigeria (CBN). The commission’s role, it said, is limited to evaluating NNPCL’s work programmes and approving fund releases based on verified activities.
“We approve funds based on certified activities and contracts awarded. If a contract has not been awarded, we cannot approve payments,” the statement read.
To ensure transparency, the commission engaged PwC to independently evaluate NNPCL’s claims before the final fund approval. “So far, there is no outstanding sum. The NUPRC approved the final release on November 27, 2025, amounting to $140 million. Earlier, $45 million and N14.9 billion were released. We have documentation to support this,” Akinkuotu said.
The statement urged the public to seek confirmation directly from NNPCL rather than rely on unverified sources seeking to undermine the commission’s credibility.
The Frontier Exploration Fund was established under Section 9(4) of the Petroleum Industry Act (PIA) and comprises 10% of rents from petroleum prospecting licences, 10% of rents from petroleum mining leases, and 30% of NNPCL’s profit oil and profit gas under production-sharing, profit-sharing, and risk service contracts. The fund is designated for exploration of frontier basins and is to be utilised simultaneously across all eligible areas.
The fund’s release mechanism reflects reforms introduced by the Petroleum Industry Act, which streamlined regulatory oversight into two primary bodies: the Nigerian Upstream Petroleum Regulatory Commission and the Midstream and Downstream Petroleum Regulatory Authority, replacing the previously fragmented regulatory structure.
The Nigerian Association for Energy Economics (NAEE) had earlier called for clarity on NNPCL’s 30% transfer of oil and gas profit to the frontier exploration fund, highlighting public demand for transparency in the sector.
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