Minister of state for petroleum resources, Heineken Lokpobiri, has alleged that some individuals are exploiting Nigeria’s frontier exploration fund by borrowing money for different purposes.
Lokpobiri warned that individuals and agencies responsible for the mismanagement of the fund will be held accountable.
The minister who gave the warning at the 43rd annual international conference and exhibition of the Nigerian Association of Petroleum Explorationists (NAPE), explained that the frontier exploration fund, established under the Petroleum Industry Act (PIA), was intended to support new oil exploration efforts in Nigeria’s frontier basins — especially in regions such as Chad, Sokoto, Anambra, Benue, and other underexplored areas.
“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,” he stated.
Lokpobiri, however, lamented that presently, some individuals “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 queried.
Continuing, Lokpobiri said “Those who are exploiting these frontier exploration funds will have to be held accountable.”
According to the minister, the resources should be used to “finance members of NAPE to do the exploration that the money is meant for”.
He described the improper use 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 renewed exploration efforts.
The minister emphasised the need for urgent action to reverse the trend and boost investments in discovering new reserves to sustain the country’s oil 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,” he said.
“The potential is that if we do more exploration, our figures are likely to quadruple.”
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.
