The Nigerian Upstream Petroleum Regulatory Commission has firmly denied reports claiming it withheld N283.3bn in exploration funds meant for the Nigerian National Petroleum Company Limited under the Frontier Exploration Fund (FEF).
The clarification followed media claims suggesting that the Commission failed to release funds allocated for frontier basin exploration projects across the country.
In its response, the Commission described the allegation as misleading, stressing that the FEF is not domiciled with the regulator. According to the agency, the fund is held in an account managed by the Central Bank of Nigeria, in line with statutory provisions under the Petroleum Industry Act.
The Commission emphasized that its responsibility is restricted to evaluating the work programme submitted by NNPC Ltd. and approving disbursements only when activities meet established regulatory criteria.
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Providing further details, the regulator stated that it had already approved and released significant portions of the fund to NNPC Ltd. This includes more than $185 million and an additional N14.9 billion for certified exploration activities.
It explained that approvals are only issued when contracts have been awarded and activities verified, noting that it cannot authorize payments for projects that have not met due-process requirements.
To strengthen transparency and ensure compliance, the Commission disclosed that it engaged the services of PricewaterhouseCoopers to independently evaluate NNPC’s claims before final fund approvals.
This, it said, was part of a broader effort to maintain accountability around the strategic fund established to accelerate exploration in frontier basins such as Sokoto, Chad, Anambra, and Benue.
The FEF was established by the Petroleum Industry Act, which mandates that 30 per cent of NNPC Ltd.’s profit from oil and gas be dedicated to exploration in areas with significant resource prospects. The Commission reiterated that it has adhered strictly to statutory guidelines and condemned any insinuation of financial impropriety.
