The African Energy Policy Alliance (AEPA) has welcomed the Nigerian Upstream Petroleum Regulatory Commission’s decision to clarify the status of the Frontier Exploration Fund, describing the Commission’s actions as a demonstration of regulatory maturity at a time of heightened scrutiny of the country’s oil and gas sector.
In a statement released on Thursday, AEPA said the confirmation that more than $185 million and ₦14.9 billion had been released to the Nigerian National Petroleum Company Limited (NNPCL) helped dispel uncertainty around the fund’s management. The group said the move reinforced what it called a growing culture of transparency under the NUPRC’s Chief Executive, Gbenga Komolafe.
The Frontier Exploration Fund, created under the Petroleum Industry Act, is intended to support exploration in undeveloped basins across the country. Recent claims suggesting the Commission had withheld money prompted questions from parts of the industry. AEPA said the NUPRC’s response had served to “reset the conversation with facts rather than speculation”.
Central to its reaction was the Commission’s explanation that the fund is domiciled with the Central Bank of Nigeria and not held by the regulator. According to the NUPRC, disbursements are made only after the NNPCL’s exploration work programmes are assessed and verified. AEPA highlighted the Commission’s decision to engage PwC as an independent evaluator as evidence of a more structured approach to upstream governance.
The group pointed to the staggered releases – an initial ₦14.9 billion and $45 million, followed by a final tranche of $140 million approved at the end of November – as an example of procedure being allowed to run its course. Dr Randy Amuche, AEPA’s Executive Director, said such “process-led oversight” was increasingly necessary as African states compete for capital in a rapidly shifting global energy landscape.
The relationship between the NUPRC and the NNPCL, often a source of tension in other producing countries, was also noted. AEPA said the coordination between the two bodies demonstrated how regulatory agencies and national oil companies could work together without blurring institutional mandates. “The regulator demands evidence; the NNPCL provides it. This is how the system should function,” the statement said.
The organisation urged policymakers in other African states to examine Nigeria’s approach, particularly those looking to open frontier basins in Uganda, Namibia and parts of East Africa. It argued that predictable and transparent regulatory behaviour remained one of the continent’s strongest selling points for investors wary of political and operational risk.
AEPA concluded by calling on industry commentators to rely on verified information, warning that unsubstantiated claims risk eroding trust in public institutions. It said that, for Nigeria, effective supervision of frontier exploration would continue to play a decisive role in reserve growth and long-term energy security.
