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MDGIF Investment Policy Statement

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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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i.
The asset allocation should reflect a proper balance between the Fund’s financial
and investment objectives, risk tolerance and need for liquidity.
ii.
All idle funds shall be invested in safe and liquid investments to optimise the Fund
portfolio, prior to being deployed for equity investment in gas projects.
iii.
The Fund shall maintain adequate cash balance in its liquidity position to finance its
investment program and funding commitments for equity investments in projects.
iv.
The Fund will maintain an equal prioritisation on its various target investment areas,
provided that all investments considered meet the Fund’s qualifying criteria.
v.
The Fund shall review and evaluate gas infrastructure opportunities for investment
across all geopolitical zones and regions in Nigeria with no geographic preference
within the country.
vi.
The Fund shall adhere to limits specified in this MIPS on the maximum absolute and
percentage amounts of the Fund’s value or annual total investments that may be
invested in a single project or transaction.
vii.
The Fund shall avoid concentration risk but ensure that resources are efficiently
deployed per project. The diversifications shall provide reasonable assurance that
no project will have a disproportionate impact on the Fund’s aggregate results and
to ensure even spread of the benefit of the investment capital available to the Fund;
viii.
The Fund may reinvest all realized interest, proceeds, dividends and other incomes
accrued from the equity investment of the Fund in other secured low risk investments
as may be approved by the Governing Council.

3.5
Geographic Focus
The MDGIF shall review and evaluate gas infrastructure opportunities for investment on a
non-discriminatory basis across Nigeria.
3.6
Target Sectors for MDGIF Investment
The MDGIF will invest in the development of critical gas infrastructure projects within the
midstream and downstream gas sectors based on the priority areas approved by the
Governing Council from time to time. The target sectors shall include but not be limited to
i.
Gas processing facilities and projects such as natural gas processing plants,
liquefied natural gas (LNG) plants, liquefied petroleum gas (LPG) plants,
compressed natural gas (CNG) plants projects.