The House of Representatives, on Wednesday resolved to investigate the illegal spending of multi million dollars frontier exploration fund by the Nigerian National Petroleum Company Limited (NNPCL).
The Frontier Exploration Fund (FEF) was stipulated in the Petroleum Industry Act, 2021, to support exploration and development in Nigeria’s frontier acreages.
The PIA also stated that the FEF, constituting 30% of NNPC’s “profit oil and profit gas” from various contracts, will finance exploration and development activities in the frontier acreages, which include Anambra, Dahomey, Bida, Sokoto, Chad, and Benue regions where hydrocarbon exploration is yet to occur or remains undeveloped.
Honorable Billy Osawuru, a lawmaker representing Orhionmwon Uhunmwose constituency in the 10th National Assembly, under the platform of the ruling All Progressives Congress (APC), raised the issue as a matter of urgent public importance in the house.
He pointed out that the funds were spent by the NNPCL, without the approval by the National Assembly, as provided in the PIA.
While noting that the funds run into millions of dollars, the lawmakers declared that the action of the NNPCL was an affront in the management of public finances, and a grave financial misconduct.
Consequently, the House mandated its relevant committees, to investigate the matter within four weeks.
Last October, the Nigeria Senate indicated it would investigate the NNPCL over the lack of funds to explore and develop new frontier acreages.