Lokpobiri Warns Against Misuse Of Frontier Exploration Fund

The Minister of State for Petroleum Resources, Heineken Lokpobiri, has raised concerns that some elites are exploiting Nigeria’s frontier exploration fund by borrowing money for purposes other than its intended use.

Speaking at the 43rd Annual International Conference and Exhibition of the Nigerian Association of Petroleum Explorationists, Lokpobiri warned that individuals and agencies responsible for the mismanagement of the fund would be held accountable.

The frontier exploration fund, established under the Petroleum Industry Act, was designed to support new oil exploration efforts in Nigeria’s frontier basins, particularly 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,” he said.

“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 added 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 asked.

“Those who are exploiting these frontier exploration funds will have to be held accountable.”

He stressed that the resources should be used to “finance members of NAPE to do the exploration that the money is meant for”, noting that improper use of the fund hampers Nigeria’s pursuit of energy security and economic stability.

“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 fostering a conducive environment for oil exploration, warning that oil licences held by firms without visible exploration activities would no longer be renewed.