The Independent Petroleum Marketers Association of Nigeria (IPMAN) in Adamawa State has issued a stern warning of a potential clash with the Nigeria Customs Service (NCS) over the recent seizure and sale of petrol products. The seizure, part of Operation Whirlwind, a joint operation with the Office of the National Security Adviser and the Nigeria Midstream and Downstream Petroleum Regulatory Authority, targeted 199,495 litres of petrol valued at N199.5 million. While the NCS justified the operation as a measure to combat smuggling, IPMAN vehemently contends that the seized products were legally acquired and transported, raising serious concerns about the legitimacy and potential economic consequences of the Customs’ actions.
The core of the dispute lies in the conflicting narratives surrounding the seized petrol. The NCS, led by Comptroller General Bashir Adeniyi, asserts that the operation was intelligence-driven and aimed at disrupting sophisticated smuggling networks. The petrol, seized and subsequently auctioned to Adamawa residents at a subsidized price, was portrayed as smuggled goods destined for illicit markets. IPMAN, however, refutes this claim, insisting that the products were sourced legitimately from refineries and were en route to designated filling stations within the country. This stark contrast in accounts underscores the escalating tension between the two entities and highlights the potential for a significant disruption to the fuel supply chain.
IPMAN’s National Publicity Secretary, Ukadike Chinedu, articulated the association’s grievances, emphasizing the detrimental impact of the seizures on petroleum marketers. He accused the Customs Service of disregarding legitimate documentation proving the legal purchase of the products, thereby unfairly penalizing marketers who have invested heavily in the business. Chinedu challenged the NCS’s claim that the seizures occurred in border areas, arguing that the tankers were simply transporting fuel to communities and filling stations within the country. He underscored the Petroleum Industry Act’s provision for the free movement of petroleum products within Nigeria, implying that the Customs’ actions are in direct contravention of existing legislation.
The dispute raises crucial questions about the scope of the Customs Service’s authority and its potential overreach. IPMAN contends that the NCS has no legal basis to seize and auction petroleum products that are being transported within the country, especially when accompanied by proper documentation. The association argues that such actions not only infringe on the rights of legitimate businesses but also disrupt the fuel supply chain, potentially leading to shortages and price hikes. The threat of an impending strike by IPMAN further underscores the seriousness of the situation and the potential for a wider economic impact.
The auctioning of the seized petrol at a subsidized price also raises concerns about fairness and transparency. While the move may appear beneficial to consumers in the short term, it creates an uneven playing field for legitimate marketers who are forced to compete with artificially lowered prices. This practice could potentially undermine the viability of legitimate businesses and discourage investment in the petroleum sector. Furthermore, the lack of clear guidelines and procedures surrounding the seizure and auctioning process raises questions about potential abuse and corruption.
The escalating tension between IPMAN and the NCS necessitates urgent intervention to prevent a full-blown industrial action. A thorough and impartial investigation into the circumstances surrounding the seizures is crucial to determine the legitimacy of the Customs’ actions and address the concerns raised by IPMAN. Clear guidelines and procedures for the seizure and disposal of petroleum products must be established to ensure transparency and prevent future disputes. A constructive dialogue between the two parties is essential to find a mutually acceptable solution that safeguards the interests of both legitimate businesses and the wider economy. Failure to address this issue promptly could have significant ramifications for the fuel supply chain and the overall economic stability of the region.
