By Eshioromeh Sebastian
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has rejected findings by the Office of the Auditor-General of the Federation which flagged alleged non-compliance and internal control weaknesses in the Midstream and Downstream Gas Infrastructure Fund (MDGIF), a directorate under the Authority.
In a press statement signed by George Ene-Ita, Director of Public Affairs, the Authority clarified that no funds are missing from MDGIF, insisting that the variances identified in the Auditor-General’s 2023/2024 Annual Report are purely timing and reconciliation issues arising from the multi-agency channel through which gas flare penalty remittances are processed.
The Authority explained that gas flare penalties are collected solely by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in line with its statutory responsibility.
These collections are remitted into the Federation Account, from which disbursements are made to MDGIF’s dedicated account with the Central Bank of Nigeria through the Federation Account Allocation Committee (FAAC) at its monthly meetings, a process the Authority says is well documented with readily available records.
“MDGIF’s role is limited to receiving statutory revenues rather than collecting them. Any shortfall that may ultimately be established falls within the remit of the collecting agencies, not the Fund,” the statement read.
The Authority further noted that it has formally written to the Auditor-General’s Office, with supporting FAAC records, to request a review of the position.
Reconciliation of all monies accruing to MDGIF is a joint undertaking involving relevant regulatory institutions and remains ongoing to ensure outstanding amounts are properly accounted for.
Reaffirming the Fund’s commitment to transparency, NMDPRA stressed that MDGIF operates under a robust governance architecture anchored by its Investment Policy Statement and overseen by its Governing Council. All transactions, the Authority said, are duly authorised in accordance with this framework.
The Authority reiterated that MDGIF takes its obligations under Section 52 of the Petroleum Industry Act 2021 seriously and welcomes the scrutiny that accompanies the management of public resources dedicated to Nigeria’s gas infrastructure agenda.
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