Nigerian Oil Marketers Battle Rising Bank Debts Amid NNPC Petrol Supply Delays
- Oil marketers in Nigeria are facing major financial losses because they cannot load petroleum products already paid for at NNPC depots
- Both IPMAN and PETROAN say their members are struggling to repay bank loans, with some awaiting over 20 million litres of fuel
- NNPC, however, stated that payment verification and product loading are ongoing, and refund requests are being processed
Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology, Banking and the Economy.
Independent oil marketers across the country are expressing frustration over growing financial losses caused by their inability to lift petroleum products they have already paid for at various Nigerian National Petroleum Company (NNPC) depots.
Source: UGC
The current situation mirrors earlier complaints by oil marketers against the Dangote Petroleum Refinery, which they accused of failing to deliver petrol weeks after receiving payment.
The delay in supply had forced several filling stations to halt operations, raising fears of an impending fuel scarcity.
Marketers face mounting bank debts
Speaking separately with Daily Sun on Sunday, the marketers said that mounting interest on bank loans taken to finance product purchases has become a serious burden, as their funds remain trapped in the system.
The Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chukwudi Ukadike, said the issue extends beyond the delay in clearing loading tickets, noting that many members have suffered significant financial setbacks.
He stated that marketers who obtained loans to fund their operations are unable to repay them because they cannot access the fuel they paid for.
According to him, IPMAN has been appealing to NNPC to either refund their payments or release products corresponding to the unprocessed tickets still stuck in the company’s online portal.
“We, the independent marketers, have been calling on NNPC to reimburse us for our money or give us products from some of our tickets that are being tied down in their system through their portal."
He added that the reconciliation exercise is ongoing and is expected to conclude soon.
Similarly, the National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gilly-Harris, expressed concern that his members’ inability to obtain paid-for products is severely affecting their businesses.
He noted that retailers are the final link between suppliers and end users, so any delay in distribution hits them hardest.
According to him, some members have outstanding orders amounting to over 20 million litres that have yet to be supplied.
Gilly-Harris also mentioned that many marketers borrowed heavily from banks to finance these transactions and are now struggling with repayments since the products remain unavailable.
“We have sourced the majority of these funds from the banks, and repayment has become a major issue now because the products are stocked with NNPC."
He said the association continues to engage with NNPC to find a solution and keep businesses afloat.
NNPC says product loading is ongoing
Responding to the marketers’ complaints, the Chief Corporate Communications Officer of NNPC Limited, Andy Odeh, clarified via a message to Daily Sun that the company works with numerous marketers who make advance payments for petroleum product allocations.
He explained that, in line with global industry standards, payment verification and product loading are ongoing processes, and NNPC maintains active communication with marketers who have completed payment to ensure smooth product distribution.
Source: UGC
Odeh further stated that when product prices change after payment but before loading, marketers are required to either pay the difference or request a refund.
He confirmed that NNPC has already received several refund requests, which are currently being processed in accordance with contractual agreements.
Imported petrol now cheaper than Dangote fuel
Meanwhile, Legit.ng earlier reported that fresh competition may be brewing in Nigeria’s fuel market as the cost of imported petrol drops below Dangote's depot rate.
Data released by the Major Energies Marketers Association of Nigeria shows that petrol landing cost dropped to N840 per litre.
The new price reflects a wide disparity from Dangote’s depot rate, which is about N887 per litre.
Source: Legit.ng
