The Independent Petroleum Marketers Association of Nigeria (IPMAN) has issued a stern ultimatum to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), demanding the settlement of a staggering N100 billion debt within seven days or face a nationwide industrial action. This debt represents unpaid bridging claims, which are essentially reimbursements to marketers for the cost of transporting fuel across the country to ensure uniform pricing. The NMDPRA’s failure to honour this financial obligation, despite assurances given 40 days prior in the presence of National Security Adviser Nuhu Ribadu, has pushed IPMAN to the brink of drastic action. The threat of service withdrawal looms large, potentially triggering a crippling fuel scarcity across Nigeria.
The crux of IPMAN’s grievance lies in the NMDPRA’s persistent disregard for the mounting debt, despite repeated promises and acknowledgements of the outstanding claims. These claims, dating back to 2024, were deducted directly from marketers’ payments for petroleum products, effectively pre-funding the bridging allowances. While the government has previously disbursed funds towards these claims, including N74 billion in 2022 and an additional N2.7 billion for freight differentials in June 2024, the current N100 billion backlog remains a significant point of contention. The brewing crisis underscores the enduring challenges within Nigeria’s downstream petroleum sector, where financial bottlenecks and administrative inefficiencies continue to disrupt operations.
IPMAN’s frustration is palpable, as expressed by Yahaya Alhasan, Chairman of the IPMAN Depot Chairmen Forum, during a press conference in Abuja. He emphasized the devastating impact of the unpaid debts on their members, citing business closures, job losses, and the repossession of assets by banks. The prolonged non-payment has not only crippled their financial stability but also exacted a heavy human cost, with some members allegedly losing their lives due to the economic hardship. Alhasan reiterated their resolve to cripple fuel distribution nationwide if the NMDPRA fails to meet their demands within the stipulated timeframe.
Further exacerbating the situation is the imposition of a five percent levy by the NMDPRA on the sale of petrol stations, a move that IPMAN vehemently opposes, deeming it unconstitutional and detrimental to development. The association clarifies that the funds being withheld are not government allocations, but monies rightfully belonging to marketers, deducted specifically for bridging allowances. This forced contribution, coupled with the outstanding debt, has further strained the financial resilience of IPMAN members, pushing them towards the precipice of a nationwide shutdown.
The potential consequences of IPMAN’s threatened action are dire, with the specter of fuel scarcity looming large over the nation. The disruption to fuel supply could paralyze transportation, impact businesses, and further exacerbate the economic hardships faced by ordinary Nigerians. The situation is particularly critical in northern Nigeria, where depots in Jos, Gusau, Minna, Suleja, Kaduna, Kano, Gombe, Yola, and Maiduguri have reportedly ceased operations due to the financial strain imposed by the unpaid debts. This regional paralysis highlights the interconnected nature of the fuel distribution network and the cascading impact of financial instability within the sector.
Adding to the complexity of the situation is the apparent lack of communication from the NMDPRA. Despite repeated attempts to reach the authority’s spokesperson, George Ene-Ita, for clarification on the matter and their plans to avert the impending strike, no response has been forthcoming. This silence further fuels IPMAN’s frustration and raises concerns about the government’s responsiveness to the brewing crisis. The absence of dialogue and concrete action from the regulatory body only amplifies the potential for disruption and underscores the urgency of resolving the outstanding debt before it escalates into a full-blown national crisis.
