The Federal Government has expressed alarm over the alleged diversion and mismanagement of Nigeria’s Frontier Exploration Fund, emphasizing that the money—administered by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC)—must be used strictly for its intended purpose.

Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, issued the warning on Monday in Lagos during the opening ceremony of the 43rd Annual International Conference and Exhibition of the Nigerian Association of Petroleum Explorationists (NAPE).

Lokpobiri accused unnamed individuals and institutions of undermining the objectives of the fund, which was created under the Petroleum Industry Act (PIA) to finance oil exploration in Nigeria’s frontier basins, including Chad, Sokoto, Anambra, Benue, and other underexplored regions.

He decried the underutilisation of the fund since the PIA came into effect, alleging that portions of the money had been borrowed for unrelated purposes.

“We have, under the PIA, the Frontier Exploration Fund domiciled with the NUPRC. That fund itself has to be used for 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 largely unexplored areas,” he said.

Lokpobiri warned that any individual or agency found culpable of diverting or mismanaging the fund would be held accountable, stressing that the misuse of such resources threatens Nigeria’s oil and gas sector.

“At the moment, some people are borrowing the fund 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?”

The minister described the non-deployment of the fund as a disservice to Nigeria’s energy security and economic stability, warning that without renewed exploration, the country’s proven reserves and production levels could stagnate.

While acknowledging the global shift toward clean energy, Lokpobiri maintained that fossil fuels would continue to play a critical role in the world’s energy mix for decades to come.

“The world now speaks of an energy mix, not energy exclusion. Even those who once championed abandoning oil and gas now admit that fossil fuels will remain a key component of global energy security for decades to come,”  he stated.

Lokpobiri reaffirmed the Federal Government’s commitment to reviving exploration activity in Nigeria’s oil and gas industry through the full implementation of the PIA and the prudent use of the Frontier Exploration Fund.

He emphasized that as Africa’s leading oil producer, Nigeria must sustain its role in ensuring global and domestic energy stability.

The minister lamented the decline in exploration activities, noting that several licensed fields remain dormant or underdeveloped.

This year’s NAPE conference, themed “Revitalizing the Nigerian Petroleum Exploration and Production Strategies for Energy Security and Sustainable Development,” focuses on enhancing energy availability, stability, and affordability while positioning Nigeria’s oil and gas sector to remain competitive amid the global energy transition.