PAC Orders Probe As NMDPRA Fails To Account For Gas Infrastructure Fund

The House of Representatives Public Accounts Committee, PAC, has ordered a forensic audit of the Midstream and Downstream Gas Infrastructure Fund after alleging that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) mismanaged and failed to properly account for the multibillion-naira fund.

The directive followed a motion raised by Cyriacus Umeha and seconded by Kafilat Ogbara, prompting  the committee, chaired by Bamidele Salam, investigate the Fund’s operations from 2021 in line with the Petroleum Industry Act.

Lawmakers said the Act requires the Fund to be financed by a 0.5% levy on petroleum product and natural gas sales and mandates prompt remittance to the dedicated account within 21 days.

However, they said several wholesale customers had defaulted and that the Authority failed to enforce payment or comply with financial regulations.

The committee said it became concerned after the NMDPRA ignored a July 21 request for documents and a summons to appear on August 12, as well as a subsequent reminder issued on August 26.

Members cited alleged due-process violations, the absence of audit reports, and suspected misapplication of funds.

The House directed the Auditor-General of the Federation to conduct a full forensic audit to establish the extent of alleged mismanagement and to identify defaulting wholesale customers.

The Auditor-General is expected to report back within 60 days.

Oduyemi Odumade, Edited By Grace Namiji