NNPC Reports N453.4bn Earnings, Faces 36.2% Shortfall

The Nigerian National Petroleum Company Limited (NNPC) reported earnings of N453.4 billion from the newly established Frontier Exploration Fund (FEF) for the 12 months of 2025. This figure represents a 36.2% shortfall from the budgeted N710.5 billion, resulting in a deficit of N257.1 billion.

The FEF is designed to finance hydrocarbon exploration activities in Nigeria's frontier basins, which include areas outside the traditional Niger Delta production belt, such as the Chad Basin, Sokoto Basin, Bida Basin, and Benue Trough. The fund's performance reflects a 63.8% realization of its annual project due to a lower revenue base from profit oil under the Production Sharing Contract (PSC), which totaled N1.511 trillion against a budget of N2.368 trillion.

Monthly data indicated fluctuations in PSC profit oil receipts throughout the year, with a peak in September at N275.4 billion. The fund's management fee is pegged at 30% of the PSC profit oil, which further impacted the available amount for frontier basin activities.

Controversy arose last year when Heineken Lokpobiri, the Minister of State for Petroleum Resources, suggested the fund's deployment was not judicious, prompting responses from the NUPRC regarding the fund's management.