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MDGIF denies gas flare penalty revenue shortfall, says all collections accounted for – EnviroNews
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The Midstream and Downstream Gas Infrastructure Fund (MDGIF) has refuted claims of under-remittance of gas flare penalty revenues, saying all collections are duly accounted for.
Mr. George Ene-Ita, Director, Public Affairs Department, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), disclosed this in a statement on Tuesday, September 8, 2026, in Abuja.
Ene-Ita said the clarification followed findings contained in the Office of the Auditor-General of the Federation’s 2023/2024 Annual Report on Non-Compliance and Internal Control Weaknesses.
He explained that gas flare penalty revenues were collected solely by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), in line with its statutory responsibility.
According to him, the collections are remitted into the Federation Account, from where disbursements are made to MDGIF’s dedicated account with the Central Bank of Nigeria (CBN).
He said such disbursements were made through the Federation Account Allocation Committee (FAAC) at its monthly meetings.
“The collections are remitted into the Federation Account, from where disbursements are made to MDGIF’s dedicated account with the Central Bank of Nigeria (CBN) through the Federation Account Allocation Committee (FAAC) at its monthly meetings.
“This is a process that is well documented,” he said.
Ene-Ita said the variances flagged in the gas flare penalty remittances reflected timing and reconciliation issues across the multi-agency Federation Account channel.
He stressed that the variances did not indicate that the revenues were unaccounted for.
“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,” he said.
The director said MDGIF had formally written to the Office of the Auditor-General of the Federation, supported by relevant FAAC records, requesting a review of the position.
He explained that the Fund’s responsibility was limited to receiving statutory revenues and did not include the collection of the revenues.
Ene-Ita said any shortfall that might ultimately be established would therefore fall within the remit of the collecting agencies and not MDGIF.
He added that reconciliation of all revenues accruing to the Fund was a joint process involving relevant regulatory institutions in the petroleum sector.
According to him, the reconciliation process is ongoing to ensure that all outstanding amounts are properly accounted for.
Ene-Ita said MDGIF operated under a robust governance framework anchored by its Investment Policy Statement and overseen by its Governing Council.
“All transactions are duly authorised in accordance with this framework,” he said.
He said the Fund remained committed to its obligations under Section 52 of the Petroleum Industry Act (PIA), 2021.
Ene-Ita said MDGIF welcomed scrutiny of public resources committed to the development of Nigeria’s gas infrastructure.
By Emmanuella Anokam
