Nigeria’s crude oil reserves have continued a three-year downward trend, despite the establishment of the Frontier Exploration Fund (FEF), which saw over ₦450 billion realised by the Nigerian National Petroleum Company Limited (NNPC) in 2025 alone.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on Wednesday announced that the country’s crude reserves fell by 0.74 per cent as of January 2026, dropping from 37.28 billion barrels in 2025 to 37.01 billion barrels.
For context, reserves stood at 37.50 billion barrels in 2024.
The Frontier Exploration Fund, created under the Petroleum Industry Act (PIA) of 2021, is intended to finance hydrocarbon exploration in underexplored frontier basins, including the Chad Basin, Sokoto Basin, Anambra Basin, Benue Trough, and Dahomey Basin.
The fund aimed to expand Nigeria’s reserves beyond the traditional Niger Delta and de-risk exploration in challenging terrains where private investors are often hesitant to invest.
Originally, the law mandated that approximately 30 per cent of NNPC’s profits from oil and gas production-sharing contracts be allocated to the FEF.
However, early this year, President Bola Tinubu’s administration directed that the funds be paid directly into the Federation Account, temporarily halting FEF disbursements.
In its Wednesday media release, the NUPRC reaffirmed its commitment to strengthening the upstream sector, growing reserves, and ensuring stable production.
The commission stressed the operationalisation of the PIA and its strategic pillars as key to achieving these goals.
Breaking down the numbers, NUPRC Chief Executive Oritsemeyiwa Eyesan reported that 2P (proven plus probable) crude oil and condensate reserves stand at 31.09 billion barrels and 5.92 billion barrels, respectively, totaling 37.01 billion barrels.
Associated Gas (AG) and Non-Associated Gas (NAG) reserves are 100.21 trillion cubic feet (TCF) and 114.98 TCF, respectively, resulting in total gas reserves of 215.19 TCF.
Eyesan noted that Nigeria’s oil reserves are projected to last 59 years, while gas reserves could sustain the nation for the next 85 years.
She attributed the slight decline in oil reserves to 2025 production and updates from field performance and subsurface technical evaluations.
Conversely, the 2.21 per cent increase in gas reserves is due to new discoveries and updated reservoir studies.
“Consequently, and in accordance with my statutory powers, I hereby declare the total oil and condensate reserves of 37.01 billion barrels and total gas reserves of 215.19 TCF as the official national petroleum reserves position as of January 1, 2026,” Eyesan stated.
In February 2026, THISDAY reported that the NNPC received over N453 billion from the FEF in 2025, according to data from the Federation Account Allocation Committee (FAAC).
