Nationwide Fuel Scarcity Looms as IPMAN Demands N100bn Debt Payment

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has issued an ultimatum to the government over an unpaid N100bn debt, warning of impending fuel scarcity. Read more on the crisis.

A nationwide shortage of premium motor spirit (petrol) in Nigeria is on the horizon as the Independent Petroleum Marketers Association of Nigeria (IPMAN) issued a seven-day ultimatum on Monday. The group threatens to halt services across the country due to unpaid bridging claims totaling N100 billion.

Yahaya Alhasan, the Chairman of the IPMAN Depot Chairmen Forum, revealed this information at a press conference held in Abuja on Monday.

He stated that the Nigerian government, via the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), has not settled its N100 billion bridging debt to petrol marketers 40 days after committing to do so in front of National Security Adviser Nuhu Ribadu.

He disclosed that the Northern depots, including those in Jos, Gusau, Minna, Suleja, Kaduna, Kano, Gombe,Guzo Yola and Maiduguri have been entirely shut down due to this ongoing debt issue.

IPMAN also expressed disapproval of the 5 percent levy that NMDPRA imposed on its members.

Alhasan stated that if NMDPRA does not pay the owed money within seven days, they will cease providing their services nationwide.

We are very frustrated that despite our forum’s demand a year ago for the payment of over N100 billion owed to our members in bridging and NTA claims by the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA), the management of NMDPRA has intentionally disregarded our request, even after explicitly promising us payment.

One of these promises was given by the NMDPRA during a stakeholders’ meeting held just before the recent strike action announced by NARTO. During this meeting, the Nigerian Association of Road Transport Owners (NARTO) included the same IPMAN bridging claim among their demands that needed to be addressed in order to call off the strike.

The NMDPRA assured that the bridging claims would be settled within 40 days, in front of both the National Security Adviser, Mal. Nuhu Ribadu, and DG DSS Mr. Adeola Ajayi. However, those 40 days have now extended into months with no sign of payment being made to us.

As a result, the nine Northern depots—Jos, Gusau, Minna, Suleja, Kaduna, Kano, Gombe,Yola and Maiduguri—have come to a complete standstill because of this ongoing debt.

To eliminate any confusion, let me reiterate that the debt owed to us represents funds belonging to marketers. These were deducted from our payments for products in order to cover bridging allowances.

We have also continued to document the deaths of our members, the shutdown of their businesses, staff layoffs, and commercial banks taking over their business premises. All these issues stem from NMDPRA’s refusal to pay us what we are owed.

Another concerning issue is the NMDPRA’s implementation of numerous unusual levies on our members.

One of the main issues is that they are imposing a 5 percent commission on sales from any petrol station outlets in Nigeria. When did the NMDPRA transform into a real estate agency, earning commissions from selling retail petrol stations? It’s undeniable that the downstream retail industry is constantly evolving.

As IPMAN members, we consistently go above and beyond to periodically upgrade our outlets in order to align with international best practices.

Despite this, the NMDPRA has complicated matters for us by imposing unreasonable levies on our members whenever we decide to renovate our petrol outlets.

These are just a few examples of the numerous burdensome levies that have been imposed on us. They not only hinder development but also violate constitutional principles, and we are calling for their immediate suspension.

As a group of law-abiding Nigerians, we genuinely believe that we have allowed sufficient time for the NMDPRA to disburse our payments in full and settle the bridging claims.

However, given their persistent refusal, we have decided to collaborate with our sister organizations, the PTD and NARTO, to take collective action in due course.

As members of IPMAN, we must emphasize that we own a significant number of petroleum tankers operated by the PTD. We may be compelled to halt our tanker operations for loading petroleum products in order to enforce the immediate payment of our bridging and NTA claims.

We urge the Federal Government of Nigeria, under the leadership of President Bola Tinubu, to actively intervene in resolving this ongoing conflict between the Depot Chairmen of the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Nigerian Midstream & Downstream Petroleum Regulatory Authority (NMDPRA).

We are prepared to take swift action starting Monday, February 24, 2025, if our demands remain unmet.