WED SEPT 09 2026-theGBJournal| The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has rejected concerns over discrepancies in gas flare penalty remittances to the Midstream and Downstream Gas Infrastructure Fund (MDGIF), saying the variances identified in the Auditor-General of the Federation’s 2023/2024 report reflect timing and reconciliation issues rather than unaccounted revenue.
The Authority said gas flare penalties are collected solely by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), in line with its statutory responsibility, while the MDGIF’s role is limited to receiving its statutory allocation.
According to the NMDPRA, the penalties collected by NUPRC are first remitted into the Federation Account, after which disbursements are made to the MDGIF’s dedicated account with the Central Bank of Nigeria through the Federation Account Allocation Committee (FAAC) at its monthly meetings.
It said the process is documented and supported by records, adding that the differences highlighted in the audit report arise from the timing and reconciliation of transactions moving through the multi-agency Federation Account channel.
“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 Authority said.
The NMDPRA said MDGIF has 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 findings.
It stressed that the distinction between the collecting agency and the recipient fund was important in assessing any potential shortfall.
“As 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,” it said.
The Authority added that reconciliation of all monies accruing to MDGIF remains a joint exercise involving the relevant regulatory institutions in the petroleum sector.
The process, it said, is continuing to ensure that all outstanding amounts are properly accounted for.
The clarification comes amid heightened scrutiny of the management and movement of petroleum-sector revenues, particularly funds associated with gas infrastructure development.
The NMDPRA said the MDGIF operates under a governance framework anchored by its Investment Policy Statement and overseen by its Governing Council, with transactions authorised in accordance with the framework.
It also reaffirmed the Fund’s commitment to its obligations under Section 52 of the Petroleum Industry Act 2021, saying it welcomes scrutiny of the management of public resources dedicated to Nigeria’s gas infrastructure agenda.
The statement was signed by George Ene-Ita, Director of Public Affairs at the NMDPRA, on September 8, 2026.
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