MDGIF Denies Gas Flare Penalty Revenue Mismanagement, Blames Variances on Reconciliation
MDGIF, a directorate of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), made the clarification in a statement signed by NMDPRA Director of Public Affairs, George Ene-Ita.
The Fund said gas flare penalties were collected solely by the Nigerian Upstream Petroleum Regulatory Commission in line with its statutory responsibility.
According to MDGIF, the NUPRC remits the collections into the Federation Account, after which funds are disbursed to the Fund’s dedicated account with the Central Bank of Nigeria through the Federation Account Allocation Committee during its monthly meetings.
It said the process was properly documented, with relevant records available for verification.
“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 Fund said.
MDGIF said it had formally written to the Office of the Auditor-General of the Federation, submitting supporting FAAC records and requesting a review of the position contained in the audit report.
The Fund also stressed that its role was limited to receiving statutory revenues and not collecting them, adding that any shortfall that may eventually be established would fall within the remit of the collecting agencies.
It said reconciliation of all monies accruing to MDGIF was a joint process involving relevant regulatory institutions in the petroleum sector and that the exercise was ongoing to ensure all outstanding amounts were properly accounted for.
On its financial governance, MDGIF said it operated under a governance structure anchored by its Investment Policy Statement and overseen by its Governing Council.
The Fund maintained that all transactions were duly authorised in accordance with the established framework.
It added that it took its obligations under Section 52 of the Petroleum Industry Act 2021 seriously and welcomed scrutiny of the management of public resources committed to Nigeria’s gas infrastructure development.
