The Nigerian National Petroleum Company Limited (NNPCL) has secured N318.05 billion between January and August 2025 to finance frontier oil exploration, despite revenue shortfalls.
30% Allocation Under Petroleum Industry Act
The Petroleum Industry Act (PIA) 2021 mandates that 30% of Production Sharing Contract (PSC) profits go into the Frontier Exploration Fund. This fund supports drilling and surveys in inland basins, including Anambra, Bida, Benue, Sokoto, Chad, and Dahomey.
NUPRC’s Frontier Exploration Plan
In July 2025, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) launched a Frontier Basin Exploration and Development Plan. The program includes seismic surveys, stress-field detection, and new wildcat drilling. Key projects listed were the Eba-1 well in Dahomey and the reappraisal of Wadi wells in Chad.
Revenue Shortfalls and Volatile Deductions
Although PSC profits hit N1.06 trillion, this fell below the N1.58 trillion target. Monthly allocations fluctuated—ranging from N6.83 billion in June to N78.94 billion in August—highlighting revenue instability.
Experts Call for Policy Review
Industry experts argue that allocating 30% to frontier exploration is excessive. They propose reducing it to around 10% to boost inflows into the Federation Account and stabilize Nigeria’s revenue base.
