Heineken Lokpobiri, minister of state for petroleum resources, has raised concerns over the misuse of Nigeria’s frontier exploration fund, noting that some individuals are diverting the money for purposes unrelated to oil exploration.
Speaking on Monday at the 43rd annual international conference and exhibition of the Nigerian Association of Petroleum Explorationists (NAPE), Lokpobiri warned that those responsible for mismanaging the fund would be held accountable.
The frontier exploration fund, established under the Petroleum Industry Act (PIA), was designed to support new oil exploration efforts in Nigeria’s frontier basins, particularly in underexplored regions such as Chad, Sokoto, Anambra, and Benue.
“We have, under the PIA, the Frontier Exploration Fund domiciled with the NUPRC. That fund must now be used for the purpose it was intended under the Act,” he said.
Since assuming office, Lokpobiri said, little emphasis has been placed on using the fund to advance exploration in largely untapped areas. He noted that some individuals are instead “borrowing the money” for other purposes, warning of the risks posed by such practices.
“If you have funds lying fallow, someone may borrow them under the pretense of returning them, and they may never do so. Who then do we hold accountable?” he asked.
The minister stressed that the resources should be directed to support NAPE members in their exploration activities. He described the diversion of the fund as a setback to Nigeria’s energy security and economic growth, cautioning that proven reserves and production levels could stagnate without renewed exploration efforts.
“Most of the explorations in Nigeria were carried out in the 1990s. The figures we discuss today, 37 billion barrels of crude oil and 200 million cubic feet of gas, are outdated. With more exploration, these numbers could potentially quadruple,” he said.
Lokpobiri reiterated the federal government’s commitment to fostering an enabling environment for oil exploration, warning that oil licences held by companies without active exploration plans would no longer be renewed.
