₦200bn Debt: IPMAN Threaten Service Withdrawal Amidst Fuel Scarcity

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has issued a warning that they will disrupt the supply of Premium Motor Spirit (PMS), commonly known as petrol, due to the non-payment of ₦200bn bridging claims.

This threat comes amidst a nationwide scarcity of petrol, which has resulted in a surge in prices at the pump and the black market. Mazi Oliver Okolo, the association’s Unit Chairman and Spokesperson for Aba Depot, stated that this action is supported by the IPMAN’s national leadership. Okolo alleged that the debt is owed by the Nigerian Midstream and Downstream Petroleum Regulatory Commission (NMDPRA).

Despite a directive from the Petroleum Minister (Oil) Heineken Lokpobiri for payment, the NMDPRA has failed to settle the ₦200bn debt. Okolo further claimed that only ₦13bn has been paid to IPMAN members since the minister’s directive in February 2024, resulting in severe financial difficulties for their businesses.

He also criticized the Nigerian National Petroleum Company Limited (NNPCL), the sole importer of petroleum products, for the current petrol scarcity, which has forced some IPMAN members to shut down their businesses and lay off employees.

The leadership of the NMDPRA has caused us great concern with their unpatriotic behavior in addressing the debt that has accumulated since September 2022. Our members, who are businessmen and women, took out bank loans to keep their fuel retail outlets operational throughout Nigeria, serving the vast population. Unfortunately, many of our members have been driven into bankruptcy and financial insolvency because they have been unable to fulfill their financial obligations to the banks, solely due to the NMDPRA’s failure to provide them with their funds. Consequently, the banks have taken over the business premises of numerous members. As indigenous organizations and Depot Chairmen, we are deeply dissatisfied that instead of receiving support from the government to enhance our businesses, we are being discouraged by the head of the NMDPRA.

It is important to mention that during a stakeholders meeting on February 20, 2024, with Mr. Heineken Lokpobiri, the Honourable Minister of Petroleum Resources (Oil), and NSA Nuhu Ribadu, Engr. Farouk Ahmed, the Chief Authority of NMDPRA, was instructed by Mr. Heineken Lokpobiri to settle the entire debt within 40 days. However, we have now surpassed the 40-day deadline given to the NMDPRA, and it is shameful to admit that only a meager sum of N13 Billion has been paid. This demonstrates a complete disregard for our situation, without any remorse or consideration for the directive of the Honourable Minister,” as stated in the official statement.

Okolo also alleges that NNPC Ltd imports the products and supplies them to private depots, who then sell them at exorbitant prices ranging from ₦820 to ₦950 per litre. Additionally, IPMAN members have to pay an extra ₦2 million for transportation to other parts of the country, making it challenging for them to sell to Nigerians at the agreed-upon pump price.

The members of IPMAN have urged President Bola Tinubu to thoroughly investigate the matter, which they believe will have a severe negative impact on their businesses and subsequently on the general public.

They strongly oppose the significant increase of over 500% on the Sales and Storage License imposed by the NMDPRA and call for the immediate intervention of the federal government. IPMAN warns that if their demands are not met promptly, they will be compelled to make critical decisions that could disrupt the supply and sale of petroleum products throughout Nigeria.