The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has strongly denied allegations that it withheld the so-called Frontier Exploration Fund from the Nigerian National Petroleum Company Limited (NNPCL). In a fresh statement, the regulatory body clarified that it has already approved and disbursed substantial sums, over US$185.1 million along with ₦14.9 billion to the national oil firm.
According to the NUPRC, the Frontier Exploration Fund (FEF) is not held inside the commission. Instead, it resides in an escrow account managed by the Central Bank of Nigeria (CBN). The regulator’s job, it says, is simply to review and verify the work programmes submitted by NNPCL before signing off on payments. If no contract has been awarded yet for a given project, then no payment can be approved.
In its announcement, NUPRC reaffirmed: “We approve funds based on certified activities and contracts awarded. So, if a contract has not been awarded, we cannot approve payments.” To bolster transparency, the commission had engaged external auditors PricewaterhouseCoopers (PwC) to verify NNPCL’s expenditure claims before the final release of funds.
NUPRC stated that the most recent tranche, US$140 million, was approved for release on November 27, 2025. Earlier disbursements included N14.9 billion and US$45 million. The commission emphasized that there is currently no outstanding amount due for release.
The clarification comes amid swirling concerns over delayed payments and accusations of mismanagement as Nigeria tries to ramp up oil exploration across underexplored regions. The Frontier Exploration Fund was created under the Petroleum Industry Act 2021 (PIA), which mandates that 30 percent of profits from production-sharing contracts should go toward exploring frontier basins across Nigeria.
By confirming that funds have indeed been released and that the disbursement process follows lawful verification steps, NUPRC aims to clear its name and restore confidence in the transparency of the frontier-fund mechanism. It invited anyone with doubts to contact NNPCL directly rather than relying on unnamed sources.
Under the PIA, the Frontier Fund is supposed to support exploration activities in Nigeria’s frontier basins, such as Chad, Sokoto, Anambra, Benue and Dahomey with the goal of discovering new reserves and boosting production.
Significantly, recent disclosures show that NNPCL secured ₦318.05 billion between January and August 2025 for frontier exploration, drawn from the statutory 30 percent deductions of production-sharing profits.
Meanwhile, watchdog groups such as the Oil and Gas Watchdogs Network have commended NUPRC’s “transparent, responsible and judicious” management of the Frontier Exploration Fund, saying recent field activities prove the Fund is being deployed for actual exploration work.
Given these developments, the narrative that funds were being withheld appears to be mistaken. According to NUPRC, all certified payments have been made, and there is no backlog waiting to be paid.
By issuing this detailed update, NUPRC appears determined to end speculation and reposition the Frontier Fund as a credible mechanism to expand Nigeria’s oil and gas potential, particularly in largely unexplored regions that, if developed, could boost national output and reserves.
By confirming disbursement of the Frontier Exploration Fund, NUPRC helps reassure investors that Nigeria remains committed to expanding oil output. This transparency could attract fresh upstream investment and boost crude-oil revenues, critical for national income given Oil & Gas remains central to Nigeria’s fiscal health and foreign-exchange earnings.
