House Orders Forensic Probe Of NMDPRA Gas Infrastructure Fund

The Public Accounts Committee (PAC) of the House of Representatives has expressed concern over the alleged diversion and poor management of the Midstream and Downstream Gas Infrastructure Fund by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

Consequently, the Committee has demanded an extensive forensic review of the fund’s activities from 2021 up to date.

The Chairman of the Committee, Hon. Bamidele Salam, made this decision following the adoption of a motion titled: “Motion on the Urgent Need to Investigate Misapplication and Mismanagement of Midstream and Downstream Gas Infrastructure Fund by the NMDPRA from Year 2021 to Date in Contravention of the Petroleum Industry Act (PIA) 2021,” introduced by Hon. Cyriacus Umeha and seconded by Hon. Kafilat Ogbara.

The Committee recalled that Section 52(1) of the Petroleum Industry Act (PIA) 2021 created the Midstream and Downstream Gas Infrastructure Development Fund and clearly requires that spending from the fund must be authorised through National Assembly appropriations.

It also pointed out that Section 52(7a) directs that the fund be sustained through a 0.5 percent charge on the wholesale price of petroleum products and natural gas sold domestically, payable by wholesale buyers, in addition to other levies specified under Section 47(2)(c) of the Act.

Members further referenced Sections 52(8) and 52(9), which impose on the NMDPRA the responsibility to ensure that all such levies are collected and transferred into the Fund’s account no later than 21 days after petroleum products or natural gas are sold.

The PAC reminded stakeholders that Order 20, Rule 6(5) of the House Standing Orders (11th Edition) grants the Committee the authority to probe losses of public revenue, failure to remit statutory fees, and breaches of financial regulations related to public funds.

The Committee said its concerns deepened after it formally wrote to the NMDPRA on July 21, 2025, demanding detailed documentation on how the Fund has been administered and inviting the Authority to appear before it on August 12, 2025.

However, the motion stated that the NMDPRA neither acknowledged the correspondence nor appeared for the scheduled briefing.

According to the Committee, even after issuing a final reminder on August 26, 2025, the Authority still failed to provide any documents or show up, heightening doubts over the Fund’s management.

Lawmakers were also troubled by reports that several wholesale customers had defaulted on the compulsory 0.5 percent levy, despite Section 52(9) empowering the NMDPRA to establish penalties for delayed or outstanding payments.

They further noted serious accusations involving breaches of due process, violations of financial procedures, and the complete absence of audit reports on the Fund since its inception.

In reaction to these findings, the House resolved that the Office of the Auditor-General for the Federation should undertake a thorough forensic audit of every amount collected by the NMDPRA from 2021 onward.

The PAC explained that the investigation was expected to reveal the true scale of alleged mismanagement, diversion, or improper use of funds and to identify wholesale purchasers who failed to remit the statutory charges.

The Committee directed the Auditor-General to submit a detailed report of the findings within 60 days.

Juliet Akoje