The House of Representatives has initiated an investigation into the Nigerian National Petroleum Company Limited (NNPCL) over alleged unauthorized spending of the frontier exploration fund.
This move follows reports of purported irregularities surrounding the utilization of funds designated for exploration and development activities in Nigeria’s frontier acreages.
Established under the Petroleum Industry Act, 2021, the Frontier Exploration Fund aims to support exploration efforts in regions such as Anambra, Dahomey, Bida, Sokoto, Chad, and Benue, where hydrocarbon exploration is yet to occur or remains underdeveloped.
The fund, constituting 30% of NNPC’s “profit oil and profit gas” from various contracts, is earmarked for financing exploration and development endeavors in these frontier areas.
During a session on Wednesday, Honourable Billy Osawuru raised concerns regarding the alleged misappropriation of funds by NNPC, highlighting that expenditures were made without prior approval from the National Assembly, as mandated by the Petroleum Industry Act.
The House expressed dismay over the reported unauthorized spending, emphasizing that such actions constitute a breach of public financial management protocols and constitute serious financial misconduct.
As a response, the House has tasked its relevant committees with conducting a thorough investigation into the matter within a timeframe of four weeks. This inquiry aims to shed light on the circumstances surrounding the alleged misuse of funds and to hold accountable those responsible for any irregularities uncovered.
This development underscores the legislature’s commitment to ensuring transparency and accountability in the management of public funds, particularly within critical sectors such as the oil and gas industry.
The outcome of the investigation will be eagerly awaited as stakeholders seek clarity and corrective measures to uphold the integrity of Nigeria’s financial governance framework.