IPMAN Warns of Possible Fuel Disruption as NMDPRA Delays Debt Payments
- IPMAN says the NMDPRA has failed to pay long-standing debts, despite years of promises, and warns that continued delays could threaten fuel supply
- The association is asking the FG to intervene, even as it holds off issuing a new ultimatum until a reconciliation meeting confirms the exact amount owed
- Meanwhile, IPMAN commends NNPC Ltd. for settling its own obligations and expresses support for the Dangote Refinery and recent fuel-sector reforms
Legit.ng journalist Victor Enengedi has over a decade of experience covering energy, MSMEs, technology, banking and the economy.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has accused the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of refusing to settle long-standing debts inherited from the former Petroleum Equalisation Fund.
IPMAN warned that continued delays could ultimately disrupt the country's fuel supply.
Source: UGC
According to details from a recent IPMAN National Executive Council meeting in Abuja, the association stated that it was tired of what it termed the NMDPRA’s repeated but unfulfilled promises to settle verified claims that have been pending for more than three years.
IPMAN’s National President, Abubakar Maigandi, explained that members had shown more than enough patience. He reminded the public that the group had earlier suspended a planned strike because the regulator assured them that the debts would be cleared quickly.
However, he said most marketers were still waiting for their payments. Maigandi urged the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, to step in and push the NMDPRA to clear the backlog, warning that failure to act might leave marketers with no alternative.
Unpaid debt mounting pressure on marketers
In a phone interview with Punch, Maigandi added that although no new ultimatum had been issued, the outstanding debts were still putting serious pressure on marketers who already operate on very thin profit margins.
He said the exact amount owed would be confirmed during a reconciliation meeting expected this week.
The unpaid claims date back to when the Petroleum Equalisation Fund was responsible for reimbursing marketers for transporting petrol and diesel across the country.
The fund was designed to keep pump prices the same across the country by paying marketers who moved products to far or difficult locations.
Over time, unresolved claims, weak verification, rising transport costs and old backlogs all combined to create large unpaid debts.
IPMAN praises NNPC, supports Dangote refinery
Meanwhile, IPMAN praised the Nigerian National Petroleum Company Limited (NNPC Ltd.) for taking quick action to settle its own outstanding obligations to marketers.
Maigandi commended the new NNPC management, led by Bayo Ojulari, for taking marketers’ issues seriously, saying the company had started compiling names of marketers with pending balances and allowing them to load products once payments were completed.
Source: Getty Images
IPMAN also reaffirmed its support for the Dangote Refinery. The association believes that getting petrol directly from the refinery will lower pump prices and help stabilise the Nigerian fuel market.
Maigandi also defended President Bola Tinubu’s removal of fuel subsidy, saying it saved Nigeria large amounts of money and encouraged new investments in refining and oil distribution.
Oil marketers struggle with growing bank debts
Meanwhile, Legit.ng had earlier reported that oil marketers across Nigeria are reporting heavy financial losses as they remain unable to load petroleum products they have already paid for at NNPC depots.
Members of both IPMAN and PETROAN say the delays have left them stuck with bank loans they can’t repay, with some marketers waiting for more than 20 million litres of fuel.
NNPC, however, insists that it is still verifying payments, loading products, and handling refund requests for marketers affected by the delays.
Source: Legit.ng
