FG to Sanction Agencies Misusing Frontier Oil Exploration Fund

FG to Sanction Agencies Misusing Frontier Oil Exploration Fund
Lokpobiri insisted that those responsible for diverting or mismanaging the fund must be held accountable.
Lokpobiri accused unnamed individuals and agencies of undermining the objectives of the fund

The Federal Government has expressed concern over the alleged diversion and mismanagement of Nigeria’s Frontier Exploration Fund, warning that the fund must be used strictly for its intended purpose of developing new oil frontiers.

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Eko Hot Blog reports that the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, disclosed this in Lagos during the opening of the 43rd Annual International Conference and Exhibition of the Nigerian Association of Petroleum Explorationists (NAPE).

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Lokpobiri accused unnamed individuals and agencies of undermining the objectives of the fund, which is managed by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

The Frontier Exploration Fund, created under the Petroleum Industry Act (PIA), was designed to support oil exploration in frontier basins such as Chad, Sokoto, Anambra, Benue, and other underexplored regions of the country.

The minister lamented that since the PIA came into effect, the fund has not been effectively utilized, with reports indicating that parts of it were borrowed for unrelated projects.

“We have, under the PIA, the Frontier Exploration Fund domiciled with the NUPRC. That fund must be used for the purpose for which it was created. Since I became minister, we haven’t placed much priority on using the fund to finance exploration in these largely unexplored areas,” Lokpobiri said.

FG to Sanction Agencies Misusing Frontier Oil Exploration Fund

He cautioned that misusing the fund poses a serious risk to Nigeria’s oil and gas development, stressing that such actions could undermine efforts to boost exploration and production.

“At the moment, some people are borrowing the fund for different purposes. That is the danger. If you have money lying idle, someone will borrow it and never return it. So, who do we hold accountable?” he asked.

Lokpobiri insisted that those responsible for diverting or mismanaging the fund must be held accountable. He emphasized that the fund should be channeled exclusively toward genuine exploration activities aimed at growing Nigeria’s oil reserves.

He described the underutilization of the fund as a major setback to Nigeria’s pursuit of energy security and economic stability.

According to him, the country’s proven reserves and production capacity risk stagnation unless new exploration efforts are initiated urgently. He noted that most of Nigeria’s oil discoveries were made decades ago and urged renewed exploration to sustain production and national revenue.