"Still More Debts," Petroleum Marketers Reveal How Much FG Still Owes As Bridging Claims

• To keep the prices of petroleum products around the same range, the federal government usually pays marketers a bridging claim to cover logistics costs
• The marketers say fuel bridging claims have been accumulating since 2022, and the federal government is yet to clear up
• Earlier actions of protests and threats of a strike led to a partial payment of the debt, but there is still more to be paid, as the marketers have confirmed

Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.

Months after threatening to embark on strike over non-payment of the fuel bridging claims, petroleum marketers have revealed that the federal government is yet to pay up.

The National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Shettima, confirmed that the Nigerian National Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has not yet paid up.

In a press release from the group, the IPMAN president acknowledged the giant strides of the federal government led by President Bola Tinubu.

Shettima led a delegation to see the State Director of the Department of State Services (DSS) in the FCT, Usman Dauda.

In his remarks, Shettima commended the efforts of the DSS Director-General, Adeola Ajayi, for the role it played in ensuring that IPMAN got part payment of the fuel bridging claims. He, however, noted that there are still huge sums left unpaid.

IPMAN confirms how much FG still owes

Bridging claims refer to the payments made by the government to oil marketers to cover the cost of transporting petroleum products to different parts of the country.

With the government covering the cost, the marketers are able to retail at about the same price, creating nationwide uniformity in prices.

An IPMAN official anonymously confirmed to the PUNCH news, that the federal government through the NMDPRA had paid N50 billion out of the N200 billion owed.

IPMAN threatens to shut down filling stations

Recall that the group of petroleum marketers threatened to shut down over 30,000 filling stations in 2024 over the N200 billion debt, which was traced back to 2022.

The DSS DG intervened and got the situation under control, brokered peace between both parties and later facilitated the part payment of the debt.

The State Director of Security, FCT Command, Dauda, responded to the group noting that they were all partners and stakeholders in protecting sustainable livelihood for Nigerians.

Nine northern depots shut down over lingering debts

Earlier in the year, nine northern depots were grounded, a situation the marketers attributed to the humongous debt owed by the government. The depots were located in Jos, Gusau, Minna, Suleja, Kaduna, Kano, Gombe, Yola, and Maiduguri.

They revealed that the 40-day period the government promised to make payment had since elapsed, and the debts were still unattended.

Yahaya Alhassan, the chairman of the IPMAN Depot Chairmen Forum, told Legit.ng that the marketers were set to down their tools and stop their tankers from being used to distribute petroleum products and this would result in fuel scarcity.

He noted that the government last paid oil marketers bridging claims of N74 billion in 2022, and paid freight differentials of N2.72 billion in June 2024.

IPMAN issues 7-day notice over bridging claims debt

In related news, Legit.ng reported that IPMAN is set to embark on a nationwide strike over the owed claims.

The group recently issued a seven-day ultimatum to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to pay marketers the owed bridging claims amounting to over N100 billion.

The marketers stated that they have been promised severally in the past and the NMDPRA failed to keep its promises.

Source: Legit.ng