Probably arose from several sources, and I expect at least one was inspiration from England's very own Muhammed Al Fayed, who says "fug" and "fugging" alot, instead of the actual swearwords
Person 2:Dude, why didn't you just say fucking hell?
Grandma:*frowns at person 2*
Some people use 'Friggin' as a way of expressing their anger/shock/surprise e.g Friggin hell
boy 2: she masturbated in front of you?
boy 1: yeah, all night
Stop friggin around and get over here.
Put down the friggin' telephone!