Library / MDGIF Investment Policy Statement

MDGIF Investment Policy Statement

Page 7 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.
7
from wholesale customers.
iii.
funds and grants accruing from multilateral agencies, bilateral institutions and
related sources dedicated partly or wholly for the development of infrastructure for
midstream and downstream gas operations in Nigeria;
iv.
interest, if any, payable in respect of money in the Midstream and Downstream
Gas Infrastructure Fund;
v.
Earnings, interest and other income accruing from the Fund’s equity investment.
vi.
money received from gas flaring penalties by the Commission under section 104
(4) of the Act, which shall be for the purpose of environmental remediation and
relief of the host communities of the settlor on which the penalties are levied;
vii.
money received from gas flaring penalties by the Authority under section 33(y) of
the Act, shall be utilised for midstream and downstream investment within the Host
Community of a designated facility; and
viii.
any other sum, freely donated or accruing to the Midstream and Downstream Gas
Infrastructure Fund for development of infrastructure in midstream gas operations.
1.3
Purpose of the MDGIF Investment Policy Statement
a. According to section 52 (10) of the Act, the purpose of the Fund shall be to make
equity investments of Government owned participating or shareholder interests in
infrastructure related to midstream and downstream gas operations aimed at:
i.
increasing the domestic consumption of natural gas in Nigeria in projects which
are financed in part by private investment;
ii.
encouraging private investment through risk sharing by participating initially in
selected high risk projects and in such other equity investments that encourage
investment in midstream and downstream gas infrastructure; and
iii.
reducing or eliminating gas flare.
b. This MDGIF Investment Policy Statement (MIPS) document outlines the investment
philosophy, practices and procedures by which the Fund shall be managed and
administered by the Executive Director, MDGIF under supervision of the Governing
Council to fulfil its purpose pursuant to the Petroleum Industry Act 2021.
c. The MIPS is the official policy document that provides a framework and guideline for the