The Nigerian Petroleum Industry Bill 2020 is said to be proposing the establishment of a new intervention Fund to be called the Midstream Gas Infrastructure Fund, and a new regulatory authority to be called the Nigerian Midstream and Downstream Petroleum Regulatory Authority.

The purpose of the Fund shall be to make equity investments of government-owned participating or shareholder interests in infrastructure related to midstream gas operations. This is to deepen the usage of gas in the country by increasing the domestic consumption of natural gas. To this end, the financing of related projects by private investment in the midstream gas sector shall be encouraged.

The Fund shall be able to acquire, hold and dispose of property, sue and be sued in its corporate name, and shall have a Governing Council to supervise and make investment decisions for the Fund.

The Council shall be chaired by the Minister of Petroleum Resources. Other members of the council shall be a representative of the Central Bank not below the rank of a Director, a representative of the Ministry of Finance not below the rank of a Director, the Chief Executive Officer of the soon-to-be-created Nigerian Midstream and Downstream Petroleum Regulatory Authority, an Executive Director of the Fund, a Legal Adviser of the Authority who shall serve as the Secretary to the Council and two independent members to be appointed by the Minister of Finance. The independent members shall serve for four years and may be reappointed for another four years only.

The Bill is proposing that the Fund shall be funded through not more than 1% of the levy prescribed in a regulation under the Act, derived from the wholesale price of petroleum products sold in Nigeria and natural gas produced and sold, which shall be collected on a wholesale basis.

These are said to be excerpts from the Bill:

“The Executive Director, Midstream Gas Infrastructure Fund shall – have extensive managerial, technical or professional knowledge of the midstream petroleum operations and or fund management or any other relevant industry with a minimum of 15 years’ post-qualification experience; and be responsible for project management and the day-to-day running of the affairs of the Midstream Gas Infrastructure Fund.”

“It be financed through funds and grants accruing from multilateral agencies, bilateral institutions and related sources dedicated partly or wholly for the development of infrastructure for midstream gas operations in Nigeria. “Interest, if any, payable in respect of money in the Midstream Gas Infrastructure Fund; and any other sum, freely donated or accruing to the Midstream Gas Infrastructure Fund for development of infrastructure in midstream gas operations.”