NSE ANTHONY-UKO AND CHIKA IZUORA write that energy experts are pushing for a replacement to the Frontier Exploration Fund, warning that exploration activities in the Lake Chad Basin and Kolmani fields have slowed to a crawl.
Experts have warned that oil exploration in northern Nigeria could slow, as uncertainty over the Frontier Exploration Fund (FEF) threatens operations in basins such as Lake Chad and Kolmani.
Recall that President Bola Tinubu signed Executive Order 9 (EO9) on 13 February 2026, thereby suspending the 30 per cent frontier exploration deduction by the Nigerian National Petroleum Company Limited (NNPC), and directing oil and gas revenues to flow more directly to the Federation Account.
Before EO9, the Frontier Exploration Fund was handled as a deduction from NNPC Limited’s profit oil and profit gas under the Petroleum Industry Act, with the fund retained for frontier basin exploration rather than paid straight into the Federation Account.
The old arrangement allowed up to 30 per cent of oil and gas profits to be set aside for the fund and managed within the upstream revenue structure, rather than being fully remitted to the Federation Account. The idea was to provide a policy-backed funding stream for underexplored basins such as those in the North.
LEADERSHIP Sunday checks indicate that as of May 2026, oil exploration in northern Nigeria is active in planning and licensing, but there is little commercial production yet.
Further checks showed that the Nigerian Upstream Petroleum Regulatory Commission included the frontier basin (Lake Chad) blocks in its 2025 licensing round, even as the region is still far from becoming a major crude-producing hub.
Recall that the NUPRC offered 50 blocks in the 2025 licensing rounds, including four blocks in the Lake Chad basin northern frontier, signalling the government’s continued push to open up frontier basins.
However, reports from the regulatory commission showed that upstream activity has remained focused mainly on appraisal, development and licensing work rather than large-scale frontier drilling in the North.
The April 2026 rig-disposition report indicated that no exploration rigs were active nationwide, while development drilling accounted for most of the operating rigs, suggesting that exploration activity remained limited compared with production-focused work.
Data from the NUPRC rig-disposition report in April 2026 showed that Nigeria had 25 active rigs in its upstream operations.
Out of the 25 active rigs in April 2026, zero were recorded against exploration rigs.
A breakdown of the NUPRC rig-disposition table showed April figures of zero exploration rigs, 2 appraisal rigs, and 19 development rigs, with the balance made up by workover activity.
In the northern frontier, the Kolmani project in Bauchi and Gombe states remained one of the most prominent oil developments.
The project, which was flagged off by the late former President Muhammadu Buhari in November 2022, was still in the pipeline and had not yet entered sustained commercial production.
Reports also indicated that approvals and licences were being processed, while stakeholders continued to push for further drilling and infrastructure support.
The Lake Chad Basin also remained part of Nigeria’s northern oil story.
Historical reports showed that exploration in the basin had gone through several rounds of activity and suspension over the years, with renewed interest in recent times.
Officials had earlier suggested that the basin could hold significant oil potential. However, the area was still generally treated as a frontier zone requiring further appraisal before any major production could begin.
Industry observers said the inclusion of frontier basins in the 2025 licensing round signalled continued government interest in expanding exploration beyond the Niger Delta. They noted, however, that security, infrastructure and the high cost of developing remote basins remained major constraints.
