Oil marketers in Nigeria are facing significant challenges due to the shutdown of the Nigerian National Petroleum Company Limited (NNPC) portal used for petrol purchases. This closure has left dealers unable to apply for the commodity, while they await the delivery of over 90 million liters of petrol from NNPC, valued at approximately N79 billion. The NNPC itself confirmed the shutdown, detailing that it was implemented to manage a substantial backlog of orders. According to NNPC spokesperson Olufemi Soneye, the move aimed to prevent the company from holding marketers’ capital for prolonged periods, a situation that has been troubling the marketers substantially.
As the situation continues to unfold, industry stakeholders are eagerly anticipating the reopening of the NNPC purchasing portal. Soneye has assured marketers that the portal will be reactivated once the backlog is adequately addressed, but no timeline for this has been established. Industry estimates suggest that independent marketers have over 2,000 pending orders with the NNPC, reflecting the scale of the supply chain disruption. Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, emphasized the urgency of the situation, noting that the marketers have been unable to accurately gauge petrol prices during this period of uncertainty.
The impact of the portal’s closure is widespread and has led to members of the Petroleum Retail Outlets Owners Association of Nigeria (PETROAN) feeling similar strains. The association’s president confirmed that members are equally affected by the inability to access the NNPC portal, highlighting the far-reaching implications of this operational hiccup. Consequently, many marketers have turned to private depot owners as alternative suppliers, but this solution comes with a premium price. As a result, petrol sold at independent filling stations has become more expensive than that found at outlets owned by the NNPC or major marketers.
The operational practice wherein marketers bid for petrol through the NNPC portal, only to potentially wait months for supply, has led to severe financial strain. Independent marketers have reported instances of paying for petrol and facing substantial delays—sometimes up to three months—before receiving the product. There is a widespread sentiment that this situation has left a significant amount of capital tied up within NNPC, with some marketers estimating that over N300 billion is effectively trapped in the system as they await fuel deliveries. The long waiting times are particularly unsustainable for independent marketers, reflecting a dire need for reform within the distribution channel.
Hammed Fashola, the National Vice President of the Independent Petroleum Marketers Association, articulated frustrations regarding the current distribution pattern, arguing that it does not favor independents like IPMAN. Fashola’s call for a review of these policies underscores the sentiments shared among many marketers who feel they deserve more equitable access to fuel supplies. The allegations of funds being held by NNPC have raised eyebrows, prompting calls for better transparency and a reconsideration of existing practices surrounding fuel distribution.
In light of these challenges, marketers are now seeking alternate avenues to source their petrol, including considering direct purchases from Dangote. This shift aims to create price parity and mitigate the issues they have faced amid the ongoing dysfunction surrounding the NNPC portal. As the situation develops, the necessity for operational enhancements and clearer distribution strategies has never been more evident, with marketers emphasizing their struggle and the urgent need for corrective measures to ensure a stable supply chain and facilitate smoother transactions for those reliant on the petrol market.
