• Explains discrepancies flagged by AuGF report
Emmanuel Addeh in Abuja
The Midstream and Downstream Gas Infrastructure Fund (MDGIF) has refuted allegations of under-remittance of gas flare penalties, saying the discrepancies identified in the Office of the Auditor-General of the Federation’s 2023/2024 annual report were neither unaccounted revenue nor funds collected directly by the Fund.
The MDGIF, a directorate of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), explained that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) was solely responsible for collecting gas flare penalties under the existing statutory framework.
In a statement issued yesterday by the Director of Public Affairs at the NMDPRA, Mr. George Ene-Ita, the Fund stated that the monies collected by the NUPRC were subsequently remitted into the Federation Account before allocations were made to its dedicated account with the Central Bank of Nigeria (CBN) through the Federation Account Allocation Committee (FAAC).
According to the Fund, the variances flagged in the Auditor-General’s report were a reflection of timing differences and reconciliation issues arising from the multi-agency process through which the revenues passed, rather than evidence of missing or unaccounted funds.
It stated: “These collections are then 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 at its monthly meetings, a process that is well documented with records readily available.
“The variances flagged in gas flare penalty remittances reflect timing and reconciliation across the multi-agency Federation Account channel through which NUPRC collects and remits these funds, not unaccounted revenue.”
The MDGIF said it had formally written to the Office of the Auditor-General of the Federation, providing supporting FAAC records and requesting a review of the position contained in the report.
It further stressed that its statutory responsibility was limited to receiving revenues accruing to it and not collecting gas flare penalties, maintaining that any shortfall eventually established would fall within the responsibility of the relevant collecting agencies.
“Reconciliation of all monies accruing to MDGIF is a joint undertaking involving the relevant regulatory institutions within the sector, and this process remains ongoing to ensure that outstanding amounts are properly accounted for,” the statement added.
The Fund also stated that its operations were governed by a robust framework anchored on its Investment Policy Statement and supervised by its Governing Council, noting that all transactions were authorised in accordance with the established governance structure.
MDGIF maintained that it took its obligations under Section 52 of the Petroleum Industry Act (PIA) 2021 seriously and welcomed scrutiny surrounding the management of public resources dedicated to developing Nigeria’s gas infrastructure.
The Fund reiterated its commitment to transparency and accountability in the management of revenues meant to support investments in critical midstream and downstream gas infrastructure across the country.