Fuel Scarcity: IPMAN threatens to shutdown operations over N200bn debt

The Independent Petroleum Marketers Association of Nigeria (IPMAN) Depot Chairmen Forum has threatened to withdraw its services over non-payment of N200 billion bridging claims by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to its members since 2022.

While briefing journalists on Tuesday in Abuja, its chairman, Yahaya Alhassan, said the forum was distressed and depressed by the laidback attitude of the NMDPRA towards the survival of its member’s businesses, arising from its refusal to pay the claims.

“It is with deep frustration that we have assembled here today as the IPMAN Depot Chairmen Forum. It is also disheartening to note that some of our members have completely shut down businesses and retrenched employees.

“As businessmen and women, our members acquired bank loans to keep their fuel retail outlets running daily across the nooks and crannies of Nigeria to serve the teeming population of Nigerians,’’ Mr Alhassan said.

He recalled that Heineken Lokpobiri, Minister of State Petroleum Resources (Oil), at a stakeholders meeting in February, mandated the NMDPRA management to clear the entire debt in 40 days.

“However, today, we have crossed the 40 days’ time lapse given to the NMDPRA to clear the debt, and it is shameful to state that only the paltry sum of N13 billion has been paid, ignoring the minister’s directive,” the chairman said.

He called on President Bola Tinubu to intervene, threatening that the forum may take decisions that will cripple the supply and sales of petroleum products “if our demands are not met within the shortest period.”

“We are collectively prepared to withdraw our services, shut down every single outlet, and suspend lifting of products until our demands are fully met, and the consequences will be terrible,’’ the chairman said.

Reacting to IPMAN’s claims, Seiyefa Osanebi, NMDPRA’s spokesperson, said the payment for the bridging claims was ongoing.

Meanwhile Mr Alhassan exonerated IPMAN members from the current fuel scarcity, saying it is caused by its inability to source petroleum products.

He said the Nigerian National Petroleum Company Limited (NNPC Ltd.) was the sole importer of the product, but the marketers could not source products from its depot but from private depots at a high rate.

“We cannot buy fuel from the private depots at N950 and transport the product from Lagos to the North and other parts of the country with N2 million and still sell it at N900 or N1,000.

“It is expedient for us to state that we are more pained by the non-availability of petroleum products in the country, which has given rise to another round of untold hardship for Nigerians,” the chairman said.

However, NNPC Ltd.’s chief corporate communications officer, Olufemi Soneye, said the disruption was due to logistical issues that had since been resolved.

“We currently have an availability of products exceeding 1.5 billion litres, which can last for at least 30 days. Unfortunately, we experienced a three-day disruption in distribution due to logistical issues, which have since been resolved.

“Some folks are taking advantage of this situation to maximise profits. Thankfully, product scarcity has been minimal lately, but these folks might be exploiting the situation for unwarranted gain,’’ Mr Soneye said.

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