The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has firmly rejected allegations that it blocked or delayed the release of N283.3bn in Frontier Exploration Funds intended for the Nigerian National Petroleum Company Limited (NNPC Ltd).
The clarification, issued on Monday, puts to rest widespread speculation that the regulator had withheld statutory funds meant to support upstream exploration across Nigeria’s frontier basins.
In a detailed statement, Eniola Akinkuotu, Head of Media and Strategic Communication at the NUPRC, confirmed that over $185 million (approximately N268.4bn) and an additional N14.9bn had already been fully disbursed to NNPC Ltd in line with statutory provisions.
The disclosure reinforces the commission’s stance that the rumours circulating in the public domain were both inaccurate and deliberately misleading.
According to the commission, the Frontier Exploration Fund, created under the Petroleum Industry Act (PIA), is designed to channel 30 per cent of NNPC Ltd’s profit oil and gas revenue toward exploration activities in frontier territories such as the Gongola Basin, Sokoto Basin, Dahomey Basin, Anambra Basin, and other underexplored regions.
The fund has often been the centre of public debate due to concerns over transparency, accountability, and the cost-benefit implications of frontier exploration.
However, the NUPRC emphasized that its role in the fund’s disbursement is strictly regulatory. The Frontier Exploration Fund, it explained, is housed in a dedicated account managed by the Central Bank of Nigeria (CBN) and is not domiciled with the commission.
Its duty, instead, includes assessing NNPC Ltd’s work programme, verifying the authenticity of claims, and approving release only when contract awards and certified exploration activities have been validated.
Akinkuotu underscored this process, stating that “the Commission does not hold or delay frontier funds. Payments are approved strictly upon validation of contracts and activities. If a contract has not been awarded, we cannot approve payments.”
To strengthen transparency, the commission noted that it had engaged global audit and advisory firm PwC to conduct a thorough evaluation of NNPC Ltd’s submissions before any final approval of funds.
This third-party audit framework ensures that financial releases are justified and aligned with the intended objectives of the PIA.
Akinkuotu revealed that the most recent fund release—$140 million—was approved on November 27, 2025, following confirmation that the supporting claims met regulatory standards. Prior to this, NUPRC had cleared earlier disbursements totaling N14.9bn and $45 million, all of which had already been transferred to NNPC Ltd.
“So far, there is no outstanding payment,” the statement read, pushing back firmly against insinuations of withheld funds.
The commission insisted that any information to the contrary was being circulated by “faceless individuals” intent on damaging its credibility.
The commission also reminded the public that the Frontier Exploration Fund is strictly for NNPC Ltd and not available for use by external operators or agencies.
Given this structure, it described allegations of withholding as “absurd and logically inconsistent,” since the commission does not independently spend, manage, or store the funds.
In addition, the NUPRC referenced an earlier statement by the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, who had dismissed claims that the government was probing the regulator over its management of the frontier fund.
The minister’s November 17 rebuttal, the commission said, made it clear that there was no such investigation underway and that any reference to it constituted deliberate misinformation.
“It amounts to mischief,” the commission noted, “for anyone to cite a statement that has already been publicly denied by the purported author.”
The regulator reaffirmed its commitment to transparency, accountability, and data-driven oversight in the upstream petroleum sector.
It stressed that Nigeria’s frontier exploration activities remain essential to sustaining long-term crude oil and gas supply, attracting investment, and bolstering government revenue.
The NUPRC’s clarification also comes at a time when public interest in oil revenue management is heightened amid declining production levels, foreign exchange pressures, and the government’s push to expand exploration frontiers to support future energy security.
With the commission confirming that funds have been fully released and properly audited, attention is now expected to shift back to NNPC Ltd’s capacity to deliver on exploration targets and accelerate discoveries in frontier basins.
