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Times Reporters > Business > Oil & Gas > Nationwide Fuel Scarcity Looms as IPMAN Issues Ultimatum
BusinessMetroNewsOil & Gas

Nationwide Fuel Scarcity Looms as IPMAN Issues Ultimatum

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By Publisher Published February 25, 2025
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By Chidi Ugwu

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has given the Nigerian government a seven-day ultimatum to settle outstanding bridging claims of over N100 billion.

This comes after the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) failed to honor its promise to pay the debt, despite assurances made in the presence of high-ranking officials.

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In a communiqué signed by Alh. Yahaya Alhassan, Chairman, IPMAN Depot Chairmen Forum, which was made available to newsmen in Abuja on Monday, IPMAN threatened to withdraw services nationwide, including halting the loading and distribution of petroleum products, if the payment is not made.

The situation has already grounded nine northern depots, exacerbating fuel scarcity across Nigeria.

Additionally, IPMAN has criticized NMDPRA for imposing “abnormal levies,” including a 5% commission on petrol station sales

Part of the communique reads: “We are extremely frustrated that one year after our last demand as a forum, requesting the payment of over N100 Billion owed our members in bridging and NTA claims by the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA), the management of the NMDPRA have deliberately ignored our request, even after making clear promises to pay us.

“One of those promises was made by the NMDPRA, at the stakeholders meeting convened on the eve of the last strike action declared by NARTO. At that stakeholders meeting, the Nigerian Association of Road Transport Owners (NARTO) listed this same IPMAN bridging claims as part of their demands before the strike action would be called off.

“The NMDPRA promised to offset the bridging claims in 40 days even in the presence of the National Security Adviser, Mal. Nuhu Ribadu and the DG DSS, Mr. Adeola Ajayi. However, 40 days have today become months with no hope of our payment.

“Hence, the nine (9) Northern depots comprising of Jos depot, Gusau depot, Minna depot, Suleja depot, Kaduna Depot, Kano depot, Gombe depot, Yola Depot and Maiduguri depot have become completely grounded over this lingering debt.

“For the avoidance of doubt, it is imperative to state again that this debt being owed us are monies belonging to marketers, and which were deducted from us at the point of payments for products, in order to settle our bridging allowances.

“We have also continued to record deaths of our members, closure of their businesses, retrenchment of staff, and the take-over of their business premises by the commercial banks, all arising from this refusal of the NMDPRA to pay us our monies.

“Another worrisome development is the NMDPRA’s imposition of several abnormal levies on our members.

“Chief amongst them is the imposition of a 5% commission accruable to them at the sale of any petrol station outlet in Nigeria. Tell me, when has the NMDPRA turned herself into real estate agents; collecting a commission on sales of Retail Petrol Outlets?There is no gainsaying the truism that the downstream retail industry is an ever evolving one.

“And so, as IPMAN members, we go the extra mile to renovate our outlets occasionally, to meet with international best practices.

“However, the NMDPRA has also made this very difficult for us, as they have also subjected our members to paying bizarre levies whenever we deem it fit to renovate our petrol outlets.

“These are just a few of the many distressing levies they have forced on us; this are not only anti-developmental, they are also unconstitutional, and we are demanding their immediate suspension.

“As a forum of law-abiding Nigerians, we sincerely believe that we have given the NMDPRA enough time to pay us our monies in bulk and clear the bridging claims

“But in view of their constant refusal, we have therefore decided to liaise with our sister organizations; the PTD and NARTO in order to take a collective action in due course.

“As members of IPMAN, it is important to state that we also own sizeable numbers of petroleum tankers driven by the PTD, and we may be forced to withdraw our tankers from loading petroleum products in a view to enforce the immediate payment of our bridging and NTA claims.

“We hereby call on the federal government of Nigeria headed by Pres. Bola Tinubu to fully intervene in these prolonged disputes between Depot Chairmen of the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Nigerian Midstream & Downstream Petroleum Regulatory Authority (NMDPRA).

“We will not hesitate to immediately take actions in due course if our demands are not met immediately beginning from today Monday 24th February 2025.

“We call on our members nationwide to however remain resolute and law abiding, as we wait for our demands to be met and addressed by the NMDPRA”

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TAGGED: Fuel Scarcity, IPMAN, Oil and gas

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Publisher February 25, 2025
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