Oil search in North: NNPCL Deducts N235.6bn in Seven Months

BY Bonny Amadi

A total of N235.6 billion has been deducted by the Nigerian National Petroleum Company Limited (NNPCL) between January and July 2025 from the Frontier Exploration Fund (FEF).

The deductions were in line with the provisions of the Petroleum Industry Act (PIA), the company’s financial documents revealed.

The deductions, it was gathered, represent 30 percent of Profit-Sharing Contract (PSC) proceeds earmarked for exploration in frontier basins across the country, predominantly in the North, including the Chad Basin, Benue Trough, Anambra Basin, and other untapped hydrocarbon-rich areas, reports The Guardian.

The fund, designed to diversify the nation’s oil production away from the Niger Delta, despite climate commitments, has remained contentious over priorities, transparency and long-term strategy.

In May, NNPCL announced that oil drilling would resume in the north- ern region by June. Its Group Chief Executive Officer, Bayo Ojulari, said operations were scheduled to restart at the Kolmani field, which cut across Bauchi and Gombe states.

Ojulari, who was appointed in April and described by the Presidency as the right choice to overhaul the state oil company, had told the BBC Hausa Service that exploration in the North remained a top priority under the PIA framework.

“The government is on track with prospects for oil in the North,” he had stated.

While results remained elusive, including the one-billion-barrel oil reserves declared to have been discovered in the basin, over $3 billion has reportedly been spent on oil search in the northern region over the past two decades, as successive governments pursue frontier exploration despite criticism from civil society and environmental groups.

With the PIA now in effect, a dedicated statutory fund, estimated at about $400 million yearly is legally designed to finance such activities.

Figures show that in January, NNPC deducted $8.16 million and N9.73 billion, translating to a total naira equivalent of N22.2 billion.

In February, the deduction rose to $17.59 million and N5.8 billion, bringing the monthly equivalent to N31.7 billion. March saw further increases, with $18.66 million and N10.47 billion deducted, totalling N38.3 billion.