Oil traders represented by the Independent Petroleum Marketers Association of Nigeria (IPMAN) have threatened to close down the 30,000 filling stations operated by its members nationwide if the Federal Government fails to settle the N200 billion debt owed to marketers.
IPMAN specifically pointed out that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), a Federal Government agency, has neglected to settle the debt, which has been accumulating since September 2022.
This was revealed in a statement issued in Abuja by Yahaya Alhassan, the Chairman of IPMAN Depot Chairmen Forum, concerning the non-payment of marketers’ bridging claims. IPMAN oversees more than 30,000 filling stations across Nigeria.
Bridging claims refer to payments made by the government to oil marketers for transporting petroleum products from depots to various states across the country. Alhassan warned that the repercussions of NMDPRA’s failure to settle the N200 billion debt would be severe, leading to the closure of every marketer’s outlet nationwide.
He stated that despite efforts to resolve the issue, IPMAN is left with no choice but to address the situation urgently to prevent hardship and danger for Nigerians.
Alhassan also highlighted that during a stakeholders’ meeting held on February 20, 2024, with the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, and the National Security Adviser, Nuhu Ribadu, the Chief Executive of NMDPRA, Farouk Ahmed, was instructed by Lokpobiri to clear the entire debt within 40 days.
“However, today we have surpassed the 40-day period given to the NMDPRA to settle the debt, and it is regrettable to mention that only a meager sum of N13 billion has been disbursed, blatantly disregarding our plight and showing no regard for the minister’s directive,” Alhassan remarked.
“Previously, we had chosen the honorable approach of consistently seeking clarification from the NMDPRA regarding their refusal to clear the outstanding debt, but we have encountered continual obstacles,” Alhassan stated.
He expressed IPMAN’s deep distress and frustration with the lackadaisical approach of the NMDPRA leadership towards the sustenance of its members’ businesses, which resulted from the deliberate delay and refusal to settle the debt of over N200 billion.
“This has tragically resulted in the loss of lives among our members and the unfortunate collapse of their businesses. It is also saddening to note that some of our members have been forced to close down their businesses entirely and lay off their employees due to our inability to meet payroll obligations.”
“As entrepreneurs, our members secured bank loans to sustain the operations of their fuel retail outlets, catering to the diverse needs of the Nigerian populace across the nation,” Alhassan explained.
“Yet, it is disheartening to acknowledge that numerous members have been driven into bankruptcy and financial insolvency due to their inability to fulfill their financial commitments to the banks, stemming entirely from their failure to receive payments from the NMDPRA,” Alhassan stated.
As a result, Alhassan continued, “many of our members’ business premises have been seized by the banks.”
He stated, “The NMDPRA has unlawfully appropriated our funds, constituting the pinnacle of fraudulent activity. In light of this, we implore Mr. President to intervene in this predicament imposed upon us by the NMDPRA.
“We reiterate that if our demands are not addressed expeditiously, we have mobilized our members nationwide. As law-abiding citizens, we are collectively prepared to suspend our services, close all outlets, and cease product distribution until our demands are met in full.”
In response, the NMDPRA spokesperson, Seiyefa Osanebi, commented that the payment process is ongoing. “Payments are not made simultaneously to everyone; rather, it is an ongoing process,” Osanebi stated.
Furthermore, regarding the fuel scarcity nationwide, Alhassan attributed the issue to insufficient petrol supply by the Nigerian National Petroleum Company Limited.
“We must emphasize our deep concern over the unavailability of petroleum products nationwide, which has exacerbated the already severe hardship faced by Nigerians.
“We want to unequivocally state that the scarcity of Premium Motor Spirit (PMS) is solely caused by the NNPC and not by IPMAN or its members. Despite allegations of PMS hoarding by IPMAN members, we assert that NNPC is the exclusive importer of PMS and thus bears full responsibility for the current scarcity in Nigeria,” he declared.
IPMAN further pointed out that NNPC supplies petrol to private depots, where the commodity is sold at inflated prices, sometimes reaching as high as N850 per litre. This practice often results in higher pump prices nationwide.
Nevertheless, NNPC has assured Nigerians that the ongoing fuel scarcity and queues will be resolved by Wednesday, May 1, 2024. Olufemi Soneye, the Chief Communications Officer of NNPC, reportedly made this statement on Tuesday in Lagos.
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