The Nigerian National Petroleum Company Limited has secured N318.05 billion to fund new oil exploration projects across key frontier basins in the country.
This funding was drawn from the statutory 30% deductions of Production Sharing Contract profits, as mandated by the Petroleum Industry Act 2021.
According to documents from the September 2025 Federation Account Allocation Committee meeting, the deductions were consistently applied despite fluctuations in PSC profits. The profits totaled N1.06 trillion in the first eight months of 2025, below the budgeted N1.58 trillion, creating a shortfall of N518.76 billion.
The NNPCL received a total of N636.1 billion for frontier exploration and management fees, with N318.05 billion allocated for exploration activities. The Nigerian Upstream Petroleum Regulatory Commission will manage the fund through an escrow account and issue an annual Frontier Basin Exploration and Development Plan.
The NUPRC has unveiled a plan outlining seismic surveys, stress field detection, data integration, and exploratory drilling across several basins. The funding will support oil search in inland basins such as Anambra, Bida, Dahomey, Sokoto, Chad, and Benue.
Industry experts have raised concerns about the allocation, with some suggesting it should be reduced to 10%. Despite this, the NNPCL remains committed to exploring new oil frontiers to boost Nigeria’s oil production.
The N318.05 billion funding will go a long way in supporting the exploration activities across the various basins. The NUPRC’s plan is expected to yield positive results and increase Nigeria’s oil reserves.
The funding is a significant development for Nigeria’s oil industry, and stakeholders are eagerly awaiting the outcome of the exploration activities.
