FG to probe frontier exploration fund diversion

The Federal Government has decried the ‘diversion and misuse’ of Nigeria’s Frontier Exploration Fund, under the watch of the Nigerian Upstream Petroleum Regulatory Commission, warning that individuals and agencies responsible for the mismanagement of the money will be held accountable.

Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, stated this in Lagos on Monday at the 43rd Annual International Conference and Exhibition of the Nigerian Association of Petroleum Explorationists, where he accused unnamed persons of derailing the purpose for which the fund was created.

Lokpobiri said the Frontier Exploration Fund, established under the Petroleum Industry Act, was designed to finance new oil exploration activities in Nigeria’s frontier basins, particularly in areas like Chad, Sokoto, Anambra, Benue, and other underexplored regions.

He lamented, however, that the fund had not been properly utilised since the law came into effect, saying some were borrowing the money for other purposes.

“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 said reports indicated that parts of the fund were being diverted for purposes unrelated to exploration, warning that such practices portend danger for 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 stressed that those exploiting or mismanaging the fund would be held accountable, insisting that the money must be directed to genuine exploration programmes that would grow 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 poor application of the fund as a disservice to the nation’s quest for energy security and economic stability, warning that Nigeria’s proven reserves and production levels could stagnate if new exploration efforts are not supported.

According to him, most of the country’s oil discoveries were made decades ago, with little fresh exploration activity in recent years. He said Nigeria must urgently reverse the trend and increase investments in finding new reserves if it hopes 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 creating a conducive environment for oil exploration, warning that oil licences held by firms without visible exploration activities 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 use their expertise to help reposition Nigeria’s exploration landscape, stressing that the association’s role is central to discovering new oil and gas reserves. He called for greater use of modern technology, digital tools, and data analytics to drive 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 promised.

The oil minister further reiterated that the global narrative on energy transition has changed, with many developed nations now admitting that fossil fuels will remain central to meeting global energy demand for decades to come.

“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 guarantee energy sufficiency and position Nigeria as a key player in Africa’s energy future.

“The actions we need to take today are critical. If we don’t take them now, it might be too late. We are committed to partnering with NAPE and all relevant stakeholders to ensure Nigeria plays its rightful role in meeting global energy demands,” he stressed.

In his welcome address, the President of NAPE, Johnbosco Uche, stated that the conference theme, ‘Revitalising the Nigerian Petroleum Exploration and Production Strategies for Energy Security and Sustainable Development’, is both timely and relevant.

According to him, the theme underscores the urgent need for a deliberate & transformative approach in driving exploration and production, ensuring Nigeria meets its current energy demands while securing a sustainable and prosperous future.

Uche added that NAPE had over the years demonstrated to be the knowledge hub of Nigeria’s oil and gas industry.

“Our members’ expertise has driven discoveries, shaped policies, and built indigenous capabilities across the upstream sector. From the earliest discoveries in the Niger Delta to the ongoing efforts in frontier basins, NAPE’s impact is evident in every chapter of Nigeria’s exploration story.

However, Uche said there were challenges, as exploration has remained below expectations.

“The challenges before us are clear. Nigeria has recently experienced a recovery in oil and gas production, reversing the historical trend of decline. We are making progress toward achieving the 2030 target of three million barrels of oil per day and 12 bcf of gas daily. However, exploration activity remains below expectations. We must replace reserves and unlock vast untapped resources and unappraised discoveries that are critical to our energy security and economic resilience.

”We need to discover new oil and gas today to sustain the production of tomorrow. To revitalise exploration, we must return to data-driven innovation, integrated basin analysis, and investment-enabling policies. The regulators and industry must work together to create the environments that attract new investments, incentivise exploration, and unlock near-field and deep basin opportunities.