The Midstream and Downstream Gas Infrastructure Fund (MDGIF) has rejected claims that discrepancies in gas flare penalty remittances amount to unaccounted revenue, saying the differences flagged in the Auditor-General of the Federation’s 2023/2024 report are due to timing and reconciliation issues.
The MDGIF in a statement on Tuesday signed by George Ene-Ita, Director of Public Affairs, MDGIF said gas flare penalties are collected solely by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which remits the money to the Federation Account.
The Fund said it only receives its statutory allocation after the funds pass through the Federation Account Allocation Committee (FAAC) and are paid into its dedicated account with the Central Bank of Nigeria.
It said records of the FAAC allocations and payments are available to support reconciliation of the figures raised in the Auditor-General’s report.
According to MDGIF, the variances do not mean the revenue was lost or unaccounted for, but reflect the timing and reconciliation involved in moving funds through the multi-agency Federation Account system.
The Fund said it has written to the Auditor-General requesting a review of the findings and submitted supporting FAAC records.
It also said that since it does not collect gas flare penalties, any shortfall eventually established in the collection of the revenue would concern the agencies responsible for collecting and remitting the funds.
MDGIF said reconciliation of monies accruing to it is ongoing with the relevant regulatory institutions.
The Fund added that its financial transactions are subject to its Investment Policy Statement, Governing Council oversight and required authorisations.
It said it remains committed to its obligations under Section 52 of the Petroleum Industry Act 2021 and welcomes scrutiny of its operations.