MDGIF Denies N94.4bn Audit Query from Auditor-General

The Midstream and Downstream Gas Infrastructure Fund (MDGIF), a directorate of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, has denied allegations of under-remittance of gas flare penalties amounting to N94.4 billion as raised in the Office of the Auditor-General of the Federation’s 2023/2024 Annual Report. The MDGIF stated that the discrepancies identified were not due to missing revenue but were the result of timing and reconciliation issues within the Federation Account remittance process.

The Fund emphasized that it does not collect gas flare penalties; this responsibility lies solely with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). The MDGIF explained that gas flare penalties are remitted into the Federation Account before being allocated to them.

They have formally requested a review of the audit findings from the Auditor-General, asserting that any shortfall in revenue collection falls under the remit of the collecting agencies, not the MDGIF.