The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has debunked claims that it is withholding the Frontier Exploration Fund (FEF) from the Nigerian National Petroleum Company Ltd. (NNPCL).
This was contained in a statement signed by the commission’s Head of Media and Strategic Communication, Eniola Akinkuotu, on Monday.
Akinkuotu disclosed that $185,123,333 and N14.9 billion had been approved for release to NNPCL.
The clarification comes amid renewed public scrutiny over the utilisation of the FEF, a fund established under the Petroleum Industry Act (PIA), which mandates that 30% of NNPC Ltd’s profit from oil and gas be dedicated to frontier basin exploration.
The NUPRC explained that the fund is not domiciled with the Commission, but kept in an account managed by the Central Bank of Nigeria (CBN).
Its responsibility, the Commission noted, is limited to evaluating the work programmes submitted by NNPCL and approving releases based on verified activities.
“We approve funds based on certified activities and contracts awarded. So, if a contract has not been awarded, we cannot approve payments” the statement read.
According to the statement, the NUPRC in a bid to promote transparency, had contracted PwC to evaluate NNPCL’s claims before the final approval of the fund.
“So far, there is no outstanding sum. 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.
“Anyone interested can also reach out to the NNPCL rather than rely on faceless individuals seeking to tarnish the image of the Commission,” the statement read.
What you should know
The Nigerian Association for Energy Economics (NAEE) earlier called for clarity on the 30% NNPC Limited transfer of oil and gas profit to frontier exploration in the Petroleum Industry Bill (PIB).
Section 9(4) of the Petroleum Industry Act (PIA) provides that the Frontier Exploration Fund shall comprise 10% of rents collected from petroleum prospecting licences, 10% of rents from petroleum mining leases, and 30% of NNPC Ltd’s profit oil and profit gas under production sharing, profit sharing, and risk service contracts. The Fund is to be applied to all frontier basins and utilised simultaneously.
The Petroleum Industry Bill (PIB) was enacted to strengthen governance in the sector by streamlining regulatory oversight into two primary bodies—the Nigerian Upstream Petroleum Regulatory Commission (the “Commission”) and the Midstream and Downstream Petroleum Regulatory Authority (the “Authority”). These two agencies replaced the previously complex array of regulators that once oversaw the industry.
