Reps order forensic probe Into NMDPRA’s gas infrastructure fund

The House of Representatives Public Accounts Committee (PAC) has directed the Office of the Accountant General of the Federation (OAGF) to conduct a comprehensive investigation into the alleged mismanagement of the Midstream and Downstream Gas Infrastructure Development Fund by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) from 2021 to date.

The directive followed the adoption of a motion sponsored by Hon. Sunday Umeha during the Committee’s sitting on Monday.

The motion was seconded by the member representing Kosofe Federal Constituency of Lagos State.

Established under Section 52(1) of the Petroleum Industry Act (PIA) 2021, the Fund is intended to support critical investments in gas pipelines, storage, processing, and transportation infrastructure.

It is financed through a mandatory 0.5 per cent levy on the wholesale price of petroleum products and natural gas, collected by the NMDPRA and remitted to a designated account within 21 days of sale.

Umeha informed the Committee that, in line with Sections 52(8) and (9) of the PIA and Order 20, Rule 6(5) of the House Standing Orders, PAC requested detailed records on the Fund’s administration through a letter dated July 21, 2025.

The Authority was also invited to appear before the Committee on August 12, 2025. However, the NMDPRA neither responded nor honoured the invitation, even after a reminder was issued on August 26.

The lawmaker further alleged that several wholesale customers had failed to remit the statutory levy, despite provisions in the PIA requiring sanctions for non-payment.

He also noted that no audit report has been produced on the Fund since its inception, raising questions about compliance, transparency, and financial accountability.

PAC expressed concern over what it described as serious breaches of due process and violations of financial regulations in the administration of the Fund.

The Committee subsequently directed the OAGF to carry out a forensic audit covering the collection and utilisation of the Fund since 2021.

The audit is expected to determine the extent of alleged mismanagement, misappropriation, or diversion of funds and to identify wholesale customers who failed to remit the 0.5 per cent levy.

The OAGF is required to submit its findings within two months for further legislative action.

Since the Fund was created, stakeholders in the petroleum sector have repeatedly raised concerns about a lack of transparency, the absence of published financial records, and slow progress on gas infrastructure projects.

Many have also questioned the effectiveness of NMDPRA’s enforcement mechanisms and oversight of revenue collection.

The outcome of the audit is expected to guide possible sanctions, recovery measures, and reforms aimed at strengthening governance of the Fund and improving accountability in the sector.