The Federal Government has condemned the diversion and misuse of Nigeria’s Frontier Exploration Fund, overseen by the Nigerian Upstream Petroleum Regulatory Commission, warning that those responsible will be held accountable.
Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, made the remarks on Monday in Lagos at the 43rd Annual International Conference and Exhibition of the Nigerian Association of Petroleum Explorationists, accusing unnamed individuals of undermining the fund’s intended purpose.
Established under the Petroleum Industry Act, the Frontier Exploration Fund was meant to finance new oil exploration in Nigeria’s frontier basins, including Chad, Sokoto, Anambra, Benue, and other underexplored regions.
Lokpobiri, however, lamented that the fund has been mismanaged, with some diverting it for unrelated purposes since the law’s enactment.
“We have, under the PIA, the Frontier Exploration Fund domiciled with the NUPRC. That fund itself has to be used now for the purpose of its inclusion in the PIA. Since I became minister, we haven’t placed much premium on using the Frontier Exploration Fund to finance exploration in these places that are largely unexplored,” Lokpobiri noted.
The minister noted that reports show portions of the fund are being diverted to non-exploration purposes, warning that such practices pose serious risks to the oil and gas sector.
“At the moment, some people are borrowing the money for different purposes. And that is the danger. If you have money lying fallow there, somebody will borrow it in the name of trying to bring it back, and they will never come back. So, who do we hold accountable?” he said.
Lokpobiri emphasized that anyone exploiting or mismanaging the fund would be held accountable, insisting that the money must be used exclusively for genuine exploration programs aimed at expanding Nigeria’s oil reserves.
“Those who are exploiting these Frontier Exploration Funds will have to be held accountable — to use these resources to finance members of NAPE to do the exploration that the money is meant for,” he declared.
He described the mismanagement of the fund as a setback to the nation’s pursuit of energy security and economic stability, warning that Nigeria’s proven reserves and production levels could stagnate without support for new exploration.
Lokpobiri noted that most of the country’s oil discoveries were made decades ago, with little recent exploration activity. He stressed that Nigeria must urgently reverse this trend and boost investments in discovering new reserves to sustain production and revenue.
“Most of the explorations in Nigeria were done in the 1990s. Whatever figures we are discussing today—the 37 billion barrels of crude oil and 200 million cubic feet of gas—are old figures. The potential is that if we do more exploration, our figures are likely to quadruple,” he said.
Lokpobiri reaffirmed the Federal Government’s commitment to fostering a conducive environment for oil exploration, warning that licences held by companies without active exploration would no longer be renewed.
“I see those who have capital knocking on my door, looking for available fields to make investments, and those who have marginal fields are just holding them as souvenirs. They are not contributing to the energy security that we are talking about.
“For those people who haven’t shown capacity, why renew their licences? Even if I renew them for another 10 years, they won’t do anything. So I decided that people may say whatever they want, but I will not renew idle licences. They will be reassigned to those who can invest in them for the benefit of Nigeria,” he said.
The minister urged NAPE members to leverage their expertise to help reshape Nigeria’s exploration landscape, emphasizing that the association plays a central role in discovering new oil and gas reserves.
He called for increased adoption of modern technology, digital tools, and data analytics to achieve more efficient exploration outcomes.
“Old ways of doing things may not give you the kind of results that we need. NAPE has to invest in technology, digitalisation, and advanced analytics so that we can get the results we need. As a government, we will partner with you and give you all the support you need,” he noted.
The oil minister further reiterated that the global energy transition narrative has shifted, noting that many developed nations now acknowledge fossil fuels will remain central to meeting global energy demand for decades.
“Those who once told us to abandon oil and gas have changed course. The new language is energy mix. The world still needs energy, and for Africa, that means we must explore our resources responsibly to provide energy for development,” he said.
The minister assured that President Bola Tinubu’s administration is committed to supporting exploration initiatives that will ensure energy sufficiency and strengthen Nigeria’s role as a key player in Africa’s energy future.
