Isaac Samuel
The House of Representatives Public Accounts Committee has raised concerns over the alleged misapplication and mismanagement of the Midstream and Downstream Gas Infrastructure Fund by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The Green Chamber called for a comprehensive forensic audit of the fund’s operations from 2021 to date.
The Committee Chaired by Representative Bamidele Salam on Monday made the decision after 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,” was moved by Hon. Cyriacus Umeha and seconded by Hon. Kafilat Ogbara.
The Committee noted that 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 subjected 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.
Lawmakers also drew attention to Sections 52(8) and (9) of the Act, which mandate the NMDPRA to ensure the 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.
The Committee highlighted that Order 20, Rule 6(5) of the House Standing Orders (11th Edition) empowers the Public Accounts Committee to investigate loss of public revenue, non-remittance of fees, and violations of financial laws in the administration of public funds.
However, concerns were raised after the Public Accounts Committee, in a letter dated July 21, 2025, 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.
According to the motion, the Authority neither responded to the request nor honoured the invitation.
The Committee explained that it issued a final reminder on August 26, 2025, but the NMDPRA still failed to comply, raising further suspicion about the management of the fund.
Lawmakers expressed alarm that several wholesale customers had defaulted in paying the mandatory 0.5 percent levy, despite Section 52(9) empowering the Authority to set regulations for late or non-payment.
They also cited serious allegations of due process violations, disregard for financial regulations, and the absence of audit reports on the fund since its establishment.
In response, the House resolved to mandate 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.
PAC ordered the Auditor-General to report back to the Committee within 60 days.
