IPMAN threatens to shut down operations amid NMDPRA’s failure to settle a N100 billion debt, sparking concerns over fuel supply disruptions in Nigeria’s petroleum sector.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) is on the brink of drastic action as it threatens to bring its operations to a halt following the Nigerian Midstream and Downstream Petroleum Regulatory Authority’s (NMDPRA) failure to pay a staggering N100 billion debt owed to its members. The crisis, which has sent shockwaves through the nation’s petroleum sector, underscores growing frustrations among marketers who claim that the regulatory body has blatantly disregarded its financial obligations despite assurances made during critical stakeholder meetings. In a statement signed by the Chairman of the IPMAN Depot Chairmen Forum, Alhaji Yahaya Alhassan, the group expressed deep discontent with NMDPRA’s inaction, highlighting that the unresolved bridging claims have severely disrupted business activities across multiple regions.
For over a year, IPMAN members have awaited the settlement of funds that were promised to be cleared within 40 days during a high-level meeting attended by notable figures including the National Security Adviser, Mal. Nuhu Ribadu, and the Director-General of the Department of State Services, Mr. Adeola Ajayi. At this meeting, convened in the backdrop of escalating tensions and just before the Nigerian Association of Road Transport Owners (NARTO) initiated a strike, NMDPRA assured the forum that the pending payments would be processed promptly. However, months have passed with no visible movement towards clearing the debt. Alhaji Yahaya Alhassan emphasized that the trust and commitments extended by NMDPRA have been betrayed, leaving IPMAN members with mounting financial burdens that have now escalated into a full-blown crisis.
The financial impasse has had immediate and severe repercussions on operations at several petroleum depots across the country. Nine depots in strategic locations, including Jos, Gusau, Minna, Suleja, Kaduna, Kano, Gombe, Yola, and Maiduguri, have been rendered completely inoperative, a move that not only disrupts fuel distribution but also puts additional pressure on Nigeria’s already fragile energy infrastructure. This operational shutdown is a direct result of the unpaid funds that were originally deducted from petroleum marketers during product payments to cover bridging allowances. The persistent non-payment has resulted in significant losses for many stakeholders, leading to the unfortunate demise of livelihoods, business closures, and even forced retrenchments. In some instances, commercial banks have taken over business premises as a last resort to recover losses, further intensifying the crisis in the petroleum sector.
Adding to the financial woes, IPMAN has accused NMDPRA of imposing abnormal levies that compound the difficulties faced by marketers. One such controversial measure is the 5% commission imposed on the sale of petrol stations—a move that critics describe as exploitative and completely outside the regulatory purview of a body that should primarily ensure fair market practices. “Tell me, when did NMDPRA become a real estate agency, collecting commissions on petrol station sales?” Alhaji Yahaya Alhassan questioned, voicing the deep-seated anger and incredulity felt by members of the association. Such practices have not only undermined the financial stability of petroleum marketers but have also hindered efforts to renovate and upgrade facilities that are critical for efficient operations.
The mounting frustrations have now reached a boiling point, prompting IPMAN to announce that if NMDPRA does not settle the N100 billion debt immediately, the association is ready to take drastic collective action. This could include coordinating with other influential bodies such as NARTO and the Petroleum Tanker Drivers (PTD) union. With a sizable number of petroleum tankers in their possession, IPMAN members have indicated that they may withdraw these essential assets from the supply chain—a move that would create significant disruptions in the loading and distribution of petroleum products across Nigeria. The potential shutdown of operations by IPMAN would have far-reaching consequences, affecting not only the association and its members but also the broader economy and the daily lives of Nigerian citizens who rely on stable fuel supplies.
In a fervent appeal for intervention, IPMAN has called upon President Bola Tinubu to step in and resolve the impasse. The association insists that the Federal Government must play an active role in mediating this dispute, ensuring that the regulatory authority honors its commitment and pays the overdue debt. “As law-abiding Nigerians, we have given NMDPRA enough time to settle our bridging claims. Since they have refused to pay, we are now liaising with our sister organizations—PTD and NARTO—to take decisive action,” stated Alhaji Yahaya Alhassan. The threat of a shutdown, set to potentially commence on Monday, February 24, 2025, is being presented as the last resort by an association that feels cornered and abandoned by the very institution meant to safeguard its interests.
This unfolding drama in Nigeria’s petroleum sector is a stark reminder of the systemic issues that continue to plague the industry. With millions of Nigerians dependent on a reliable fuel supply for their daily activities, any disruption caused by the standoff between IPMAN and NMDPRA could have widespread ramifications. As stakeholders and policymakers await a resolution, the situation remains fraught with uncertainty, leaving many to wonder if the promises made in high-level meetings will ever materialize or if the crisis will deepen, compelling further intervention from the highest levels of
government.
Related: https://symfoninews.com/further-petrol-price-hike-imminent-over-rise-in-fx/
