Auditor-General’s Report: MDGIF not revenue collection agency — NMDPRA

By Obas Esiedesa, Abuja ABUJA — The Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, has clarified that the Midstream and Downstream Gas Infrastructure Fund, MDGIF, is not responsible for collecting gas flare penalties, following concerns raised in the 2023/2024 Annual Report of the Auditor-General of the Federation. The NMDPRA, in a statement signed by its Director of Public Affairs, George Ene-Ita, said gas flare penalties are collected solely by the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, in line with its statutory mandate. It explained that the funds collected by NUPRC are remitted into the Federation Account, from where allocations are subsequently made to MDGIF’s dedicated account with the Central Bank of Nigeria through the Federation Account Allocation Committee, FAAC. According to the Authority, the process is documented, with records of the relevant transactions available. The NMDPRA was reacting to findings contained in the Auditor-General’s report on non-compliance and internal control weaknesses in Ministries, Departments and Agencies, MDAs, particularly those relating to MDGIF. It said variances identified in gas flare penalty remittances were due to timing and reconciliation issues within the multi-agency Federation Account channel through which the revenues are collected and remitted. “These variances reflect timing and reconciliation across the multi-agency Federation Account channel through which NUPRC collects and

Reporting from Vanguard news wire services. Full analysis by The Abuja Times editorial desk.