Library / MDGIF Investment Policy Statement

MDGIF Investment Policy Statement

Page 6 of 34

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.
6
1 INTRODUCTION
1.1
The Midstream and Downstream Gas Infrastructure Fund
a. The Midstream and Downstream Gas Infrastructure Fund (MDGIF or the Fund) is
established by Section 52 of the Petroleum Industry Act 2021 (PIA) as:
i.
a body corporate with perpetual succession and a common seal; and to
ii.
reside in the Nigerian Midstream and Downstream Petroleum Regulatory Authority
(NMDPRA or the Authority).
b. According to the Act, the MDGIF shall have the power to acquire, hold and dispose of
property, sue and be sued in its corporate name.
c. The MDGIF has a Governing Council which shall supervise and make investment
decisions for the Fund comprising:
i.
the Minister, who shall be the Chairman of the Council;
ii.
representative of the Central Bank of Nigeria not below the rank of a director;
iii.
representative of the Ministry of Finance not below the rank of a director;
iv.
the Authority Chief Executive, Nigerian Midstream and Downstream Petroleum
Regulatory;
v.
Executive Director, Midstream and Downstream Gas Infrastructure Fund;
vi.
Three independent members, who shall be appointed by the President; and
vii.
Legal Adviser of the Authority who shall serve as the Secretary to the Governing
Council.
d. The Fund has an Executive Director, who the Act specifies shall be responsible for the
project management and administration of the Fund.
1.2
Source of Funds to the MDGIF
In line with Section 52 (7) and 52(15) of the Act, the sources of the Midstream and
Downstream Gas Infrastructure Fund shall be:
i.
0.5% of the wholesale price of petroleum products sold in Nigeria, which shall be
collected from wholesale customers and such levy shall be in addition to the levy
provided for under section 47 (2) (c) of the PIA;
ii.
0.5% of the wholesale price of natural gas sold in Nigeria, which shall be collected