Library / Applicable to: MDGIF Project Promoters Equity Partners MDGIF INVESTMENT POLICY STATEMENT (MIPS) Code: MDGIF Guide 1001 - 2024

Applicable to: MDGIF Project Promoters Equity Partners MDGIF INVESTMENT POLICY STATEMENT (MIPS) Code: MDGIF Guide 1001 - 2024

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Applicable to:            MDGIF Project Promoters  
Equity Partners 
MDGIF INVESTMENT POLICY STATEMENT (MIPS) 
 
Code: MDGIF Guide 1001 - 2024 
 
Effective Date: 17th May 2024 
 
 
This document is a property of the Midstream and Downstream Gas Infrastructure Fund. All rights reserved. 
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diligence. This is applicable to MDGIF initiated Projects. 
ii. 
Procurement and financing: request for qualification & proposal; project information 
memorandum & draft agreement development; competitive procurement strategy 
development; selection of parties to the project (e.g., O&M operator, EPC 
contractor, etc), signing of concession agreement; finalisation of financing 
agreements; risk management, etc. 
iii. 
Delivery and construction: deployment of required inputs for construction and project 
delivery; monitoring of delivery team. 
iv. 
Operations and maintenance: ongoing operations and maintenance of infrastructure 
assets. 
4.5 
Base Currency 
MDGIF account and reports shall be produced in both Naira and US dollars components. 
4.6 
Return Target 
4.6.1 Forms of Equity Investment Returns:  
a. The MDGIF shall earn adequate returns on its equity investments in infrastructure 
related to midstream and downstream gas operations. The return on investment may 
accrue to the Fund via any combination of the following; cumulatively the Fund’s 
return on investment (ROI):  
i. 
cash dividend payments being the Fund’s share of profits paid out of the investee 
project or company’s free cash flows; 
ii. 
capital appreciation on the fair value of the Fund’s shareholding or participating 
interest in its investee project or company.  
4.6.2 Return Benchmark:  
a. Benchmark returns on investments in individual projects will be based on reasonable 
IRR for target sectors. 
b. The MDGIF, however, could make exceptions where there is a clear rationale to 
support investments that do not meet the returns benchmarks identified in sections 
4.6.2(a) where the following is applicable: 
i. 
Opportunities for follow-on investments. 
ii. 
Opportunities to catalyse a new industry or space that could eventually have 
outsized returns; or 
iii. 
Other factors which may contribute to significant long-term economic growth