Reps To Investigate NNPCL Over ‘Illegal’ Spending Of Frontier Exploration Fund

The House of Representatives has launched an investigation into the Nigerian National Petroleum Company Limited (NNPCL), concerning the alleged unauthorized spending of the Frontier Exploration Fund.

This inquiry follows reports that the NNPCL utilized the fund, established under the Petroleum Industry Act (PIA) 2021, without the required approval from the National Assembly.

The PIA specifies that the Frontier Exploration Fund, which consists of 30% of NNPC’s “profit oil and profit gas” from production sharing contracts, is designated for exploration activities in Nigeria’s frontier basins.

These include less-explored or undeveloped areas such as the Anambra, Dahomey, Bida, Sokoto, Chad, and Benue regions.

Hon. Billy Osawuru raised the motion for this probe on Wednesday, citing the urgent need to address what he described as a significant breach of public financial management.

According to Osawuru, the mismanagement of the funds, amounting to millions of dollars, represents a serious case of financial misconduct by the NNPCL.

The House has tasked its relevant committees to conduct a thorough investigation and report back within four weeks.

This move aligns with similar concerns expressed by the Senate in October 2023, when it announced plans to examine the state oil company’s failure to allocate sufficient funds for the exploration and development of new frontier acreages.