IPMAN Threatens to Cripple Petrol Supply Over Unpaid ₦200 Billion Bridging Claims

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has issued a stark warning that it may take drastic actions which could severely disrupt the supply of petrol across the country.

Naija News reports that this threat comes in response to the non-payment of over ₦200 billion in bridging claims owed by the Nigerian Midstream and Downstream Petroleum Regulatory Commission (NMDPRA).

In a press conference held on Tuesday, Oliver Okolo, spokesperson and unit chairman of IPMAN at the Aba Depot, highlighted the severe financial strain faced by the association’s members due to the unpaid debt, which has been accumulating since September 2022.

Despite assurances and a directive from Heineken Lokpobiri, the Minister of Petroleum Resources (Oil), to settle the claims within 40 days during a stakeholders meeting on February 20, 2024, the issue remains largely unresolved.

Okolo detailed the dire consequences of the delay in payment, noting, “The delay in offsetting this huge debt has not only led to the deaths of many of our members but also the unfortunate collapse of their businesses.”

He explained that many IPMAN members relied on bank loans to operate their fuel outlets throughout Nigeria, and the inability to reclaim their funds from the NMDPRA has pushed them into bankruptcy and financial insolvency.

As a result, several banks have begun taking over the business premises of numerous association members, further exacerbating the crisis.

“It is demoralizing and disheartening for indigenous organizations and Depot Chairmen to find that instead of receiving support from the government to boost our businesses, the head of NMDPRA is discouraging us,” Okolo expressed.

The situation has reached a critical point where IPMAN is contemplating “far-reaching decisions that may cripple the supply and sales of petroleum products across Nigeria,” if their demands are not met promptly.

Such a move could worsen the ongoing petrol scarcity and lead to a significant spike in transport costs, affecting millions of Nigerians.

Following the 40-day deadline set by the minister, the NMDPRA has reportedly only disbursed a meagre N13 billion of the total owed, far short of the amount necessary to address the grievances of the petroleum marketers.

This ongoing dispute between the NMDPRA and IPMAN has a history of disrupting the petroleum supply chain. With the current threats, the situation could escalate further, impacting Nigeria’s broader economy and everyday life.