Energy Sector Gets a Boost as AEPA Hails Komolafe’s Credible Oversight on Frontier Funds
The African Energy Policy Alliance has thrown its weight behind the Nigerian Upstream Petroleum Regulatory Commission after the release of the Frontier Exploration Fund to the Nigerian National Petroleum Company Limited.
The organisation says the move reflects a rare level of openness and coordination that many African countries are still struggling to achieve.
In a statement issued by its Executive Director, Dr Randy Amuche, AEPA highlighted that more than $185 million and N14.9 billion were released to NNPC following proper approval and verification.
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According to him, the clarification from the Commission not only ended doubts about the status of the funds but also reinforced the public’s trust in how Nigeria manages its upstream resources.
Strengthening regulatory credibility through accountability
AEPA applauded the Commission for quickly addressing claims that it withheld funds.
The group said the prompt response showed a regulator that relies on facts, follows established procedures and is guided by a strong sense of responsibility.
Dr Amuche pointed out that NUPRC’s explanation of how the Frontier Exploration Fund is managed reflected a maturing system.
By making it clear that the fund is domiciled with the Central Bank and that withdrawals depend on a thorough review of NNPC’s work programmes, the Commission signaled that it is operating with clear rules and consistent standards.
He also praised the Commission for engaging PwC to independently assess NNPC’s claims before payments were approved.
For him, this kind of oversight builds credibility and sets a high bar for financial management in Africa’s energy sector.
A Model of Regulator–Industry Collaboration
AEPA described the coordination between the NUPRC and the NNPC as an example of what a functional energy sector should look like.
The group noted that the first tranche of N14.9 billion and $45 million, followed by the final release of $140 million on November 27, showed careful monitoring and adherence to due process.
Dr Amuche stressed that such discipline inspires confidence at a time when African nations are racing to explore frontier basins from Uganda to Namibia.
He added that the working relationship between the regulator and the national oil company demonstrates what is possible when institutions stick to their mandates and operate with mutual respect.
Nigeria’s approach as a continental guide
The organisation urged other African countries to pay close attention to Nigeria’s reforms as they review their own governance structures. AEPA believes that investor confidence can grow only when regulatory bodies embrace transparency and professionalism.
The group further encouraged stakeholders in the energy sector to rely on verified information and avoid statements that weaken trust in public institutions.
It reaffirmed its support for Nigeria’s push to strengthen exploration funding and increase the development of frontier basins.
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AEPA concluded that with NUPRC’s current leadership, Nigeria is carving a path that can benefit the wider continent, especially as Africa navigates the realities of global energy transition.
NUPRC’s digital compliance systems, licencing reforms is repositioning Nigeria
Legit.ng earlier reported that Nigeria’s upstream oil and gas industry is experiencing a noticeable lift in regulatory stability and investor sentiment, thanks to a stronger reform drive by the Nigerian Upstream Petroleum Regulatory Commission.
A recent assessment by BusinessMetrics, an independent evaluator of industry performance, says the Commission’s work under the Petroleum Industry Act is helping reframe the sector as more transparent, data-driven and investment-ready.
BusinessMetrics explains that the Commission has been deliberate in shifting toward a modern governance structure that relies on clearer rules, technology-enabled monitoring and stricter alignment with the PIA.
Source: Legit.ng
