Between January and July 2025, the Nigerian National Petroleum Company Limited (NNPCL) allocated a staggering ₦235.6 billion to frontier exploration, drawing renewed attention to the government’s push for oil in the North despite rising global commitments to cleaner energy.

Financial documents from the state oil giant show that the money was taken from the Frontier Exploration Fund (FEF), a statutory provision under the Petroleum Industry Act (PIA) that directs 30 percent of profit-sharing contract proceeds into oil search in untapped basins. These basins include the Chad Basin, Benue Trough, Anambra Basin, and the Kolmani field straddling Bauchi and Gombe States.

The aim is clear: to diversify production away from the Niger Delta, which has powered Nigeria’s oil economy for decades but is now plagued by environmental destruction and community unrest. Yet critics argue that pouring billions into northern exploration represents misplaced priorities, especially at a time when host communities in the Delta still battle pollution with meagre support.

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In May, NNPCL’s Group Chief Executive Officer, Bayo Ojulari, announced that drilling would restart in the North by June, framing it as a top priority under the PIA. He said the Kolmani site remained central to government ambitions, even though results from decades of exploration, including the much-touted billion-barrel reserves, have yet to translate into commercial breakthroughs.

The numbers reflect how much weight NNPCL is throwing behind this mission. In January, deductions stood at ₦22.2 billion, before climbing to ₦31.7 billion in February and peaking at ₦61.4 billion in April, the single highest monthly figure within the period. Even when deductions slowed to ₦6.8 billion in July, the seven-month total still hit ₦235.6 billion.

To put that into perspective, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) disclosed in June that oil-producing host communities in the Niger Delta received a cumulative ₦328.2 billion from the Host Communities Development Fund (HCDF) over four years. By contrast, the FEF attracted ₦235.6 billion in just seven months, nearly five times the monthly average allocated to Delta communities.

This stark imbalance is not new. Since the PIA was passed four years ago, experts have warned that the framework tilts heavily toward opening new oil frontiers instead of addressing the legacy of damage in existing ones. While NNPCL insists that northern exploration will diversify national revenue and reduce dependence on the Niger Delta, civil society groups question whether chasing elusive reserves is worth the billions being spent.

Beyond the politics, the timing also raises questions. At a point when many oil majors are cutting back on frontier drilling, rather focusing on deepwater and ultra-deepwater assets, Nigeria’s bet on new onshore discoveries seems out of step.

Supporters frame it as a patriotic gamble that could unlock new wealth, but detractors see it as a costly obsession that diverts funds from environmental restoration and community development in regions that already bear the scars of oil extraction.

For now, one fact is clear: frontier exploration is moving faster and commanding far more resources than the welfare of the host communities that have powered Nigeria’s oil wealth for over half a century.

Meiza Nigeria