The House of Representatives Committee on Public Accounts has alleged the misapplication and mismanagement of the Midstream and Downstream Gas Infrastructure Fund by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The Committee has therefore called for a comprehensive forensic audit of the fund’s operations from 2021 to date.
This followed a motion, titled “Motion on the Urgent Need to Investigate Misapplication and Mismanagement of Midstream and Downstream Gas Infrastructure Fund by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) from Year 2021 to Date in Contravention of the Petroleum Industry Act (PIA) 2021,” moved by Hon. Cyriacus Umeha and seconded by Hon. Kafilat Ogbara.
According to the Committee, Section 52(1) of the Petroleum Industry Act (PIA) 2021 established the Midstream and Downstream Gas Infrastructure Development Fund, stating that its utilisation must be subject to appropriation by the National Assembly.
It further observed that Section 52(7a) stipulates that the fund should be financed through 0.5 percent of the wholesale price of petroleum products and natural gas sold in Nigeria, collected from wholesale customers, in addition to levies outlined in Section 47(2)(c) of the Act.
The lawmakers drew attention to Sections 52(8) and (9) of the Act, mandating the NMDPRA to ensure prompt collection of all such sums into the Fund’s account within 21 days of the sale of petroleum products and natural gas in the country.
In a letter dated July 21, 2025, Committee, the Committee requested the NMDPRA to submit relevant information on the administration and utilization of the Fund and to appear before the Committee on August 12, 2025.
However, rather than respond to the request, the agency failed to honour the invitation.
Lawmakers raised the alarm that several wholesale customers defaulted in paying the mandatory 0.5 percent levy, despite Section 52(9) empowering the Authority to set regulations for late or non-payment, while citing serious allegations of due process violations, disregard for financial regulations, and the absence of audit reports on the fund since its establishment.
The Committee asked the Office of the Auditor-General for the Federation to conduct a comprehensive forensic audit of all funds collected by the NMDPRA since 2021.
The Committee said the audit is expected to uncover the extent of alleged mismanagement, misappropriation, and fraudulent diversion of funds, as well as identify wholesale customers who failed to remit the required levy.
