Section 52: The Midstream and Downstream Gas Infrastructure Fund.

1 There is established the Midstream and Downstream Gas Infrastructure Fund subject to appropriation by the National Assembly, which shall be—
a a body corporate with perpetual succession and a common seal; and
b reside in the Authority as prescribed in accordance with this Act.

2 The Midstream and Downstream Gas Infrastructure Fund shall have the power to acquire, hold and dispose of property, sue and be sued in its corporate name.

3 There shall be a Governing Council which shall supervise and make investment decisions for the Fund.

4 The Governing Council shall comprise the—
a Minister, who shall be the Chairman of the Council;
b representative of the Central Bank of Nigeria not below the rank of a director;
c representative of the Ministry of Finance not below the rank of a director;
d Authority Chief Executive;
e Executive Director Midstream and Downstream Gas Infrastructure Fund;
f three independent members, who shall be appointed by the President for a term of four years and may be reappointed for another four years and no more; and
g Legal Adviser of the Authority who shall serve as the Secretary to the Governing Council.

5 The Executive Director, Midstream and Downstream Gas Infrastructure Fund shall—
a have extensive managerial, technical or professional knowledge of the midstream petroleum operations, and fund management or any other relevant industry with a minimum of 15 years' post-qualification experience; and
b be responsible for project management and administration of the Midstream and Downstream Gas Infrastructure Fund.

6 The members referred to in subsection (4)(f) shall have extensive managerial, technical or professional knowledge of the midstream petroleum operations, fund management or any other relevant industry with a minimum of 15 years post-qualification cognate experience.

7 The source of the Midstream and Downstream Gas infrastructure Fund shall be—
a 0.5% of the wholesale price of petroleum products and natural gas 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);
b 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;
c interest, if any, payable in respect of money in the Midstream and Downstream Gas Infrastructure Fund;
d money received from gas flaring penalties by the Commission under section 104 (4) of this Act, shall be for the purpose of environmental remediation and relief of the host communities of the settlor on which the penalties are levied; and
e any other sum, freely donated or accruing to the Midstream and Downstream Gas Infrastructure Fund for development of infrastructure in midstream gas operations.

8 The Authority shall ensure the prompt payment of all such sums directly into the Midstream and Downstream Gas Infrastructure Fund's Account.

9 The levy under section 52 (7)(a) of this Act shall become due within 21 days of the sale of petroleum products and natural gas sold in Nigeria, and the Authority shall, after consultation with the Council, make regulations for—
a administration procedures; and
b penalties for—
(i) late payment of the levy,
(ii) non-payment of the levy, or
(iii) submission of false information in respect of the levy.

10 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—
a increasing the domestic consumption of natural gas in Nigeria in projects which are financed in part by private investment;
b 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
c reducing or eliminating gas flare.

11 There shall be a Transaction Advisor, who shall be responsible for providing transaction advisory services, including technical and commercial evaluation of proposals, defining project screening criteria and profitability target for projects and any other duty as may be assigned by the Council on behalf of the Fund.

12 The Transaction Advisor shall be selected on need basis through a competitive and transparent criteria specified by the Council and the selection process shall be managed by the Executive Director, Midstream and Downstream Gas Infrastructure Fund subject to the approval of the Council.

13 The Transaction Advisor shall, in performing his duties under subsection (11), submit report of his findings and recommendations to the Council.

14 The Midstream and Downstream Gas Infrastructure Fund shall be managed as follows—
a the Council shall at the beginning of every financial year, approve the Midstream and Downstream Gas Infrastructure Fund’s programme of action with its cost implications and the Accountant-General of the Federation shall release the approved amount for that financial year, subject to appropriation by the National Assembly;
b the money in the Midstream and Downstream Gas Infrastructure Fund’s Account that is not utilised as prescribed under this Act shall be held or invested as the Council may direct;
c an annual statement of the Midstream and Downstream Gas Infrastructure Fund shall be prepared and submitted to the Council and Minister of Finance after three months of the end of the financial year to which they relate;
d a certified annual audited accounts of the Midstream and Downstream Gas Infrastructure Fund, together with a report on the operations of the Midstream and Downstream Gas Infrastructure Fund, shall be submitted to the Council within six months of the end of the financial year to which they relate; and
e a certified annual audited accounts of the Midstream and Downstream Gas Infrastructure Fund shall be published annually.

15 Earnings, interest and other income accruing from the equity investment made under subsection (10) shall be paid directly to the Midstream and Downstream Gas Infrastructure Fund's Account.

16 Interest and other incomes accruing from the equity investment of the Midstream and Downstream Gas Infrastructure Fund can be re-invested in other secured low risk investments as approved by the Governing Council.

17 The members of the Governing Council shall be paid such allowances from the funds of the Midstream and Downstream Gas Infrastructure Fund in accordance with the approved guidelines by the Revenue Mobilization, Allocation and Fiscal Commission.