IPMAN Threatens Shutdown Of 30,000 Filling Stations Over FG's N200bn Debt

OIL merchants connected with the Independent Petroleum Marketers Association of Nigeria (IPMAN) have stated their intention to close the 30,000 outlets run by its members nationwide if the Federal Government fails to pay the N200 billion debt owing to marketers.

IPMAN explicitly stated that the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, a federal institution, has not met its commitment to clear the unpaid debt, which has been building since September 2022.

This information was revealed in a statement made in Abuja by Yahaya Alhassan, Chairman of the IPMAN Depot Chairmen Forum, about the nonpayment of bridging claims by marketers.

It is worth noting that IPMAN manages approximately 30,000 filling stations throughout Nigeria. Bridging claims are payments paid by the government to oil marketers for transporting petroleum goods from depots to various states throughout the country.

Alhassan stated that the failure of NMDPRA to pay the N200 billion will have disastrous implications, since every marketer's outlet across Nigeria, from the North to the South and from the East to the West, will be closed.

He added, “As IPMAN, we have taken every step in the past to salvage this unfortunate and looming situation, which we know will not augur well for Nigerians, but we are presently left with no option than to go all out in the next few days to address this ugly trend in our way, which will portend great hardship and danger for Nigerians.”

The IPMAN official stated that during a stakeholders meeting on February 20 with the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, and the National Security Adviser, Nuhu Ribadu, the Chief Executive of NMDPRA, Farouk Ahmed, was directed by Lokpobiri to pay off the entire debt in 40 days.

“However, today we have crossed the 40- day 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, thus going the whole length to ignore our plight without remorse and recourse to the minister's directive.

“Before now, we had taken the honourable path to continually seek an explanation from the NMDPRA on why it has blatantly refused to offset the remaining debt, but we have ceaselessly met brick walls,” Alhassan stated.

He emphasized that IPMAN was profoundly worried and dismayed by the NMDPRA leadership's passive response to the survival of its members' enterprises. This is due to the NMDPRA's willful procrastination and failure to settle the outstanding debt of more than N200 billion.

“This has consequently led to the deaths of many of our members and the unfortunate collapse of their businesses. It is also disheartening to note that some of our members have completely shut down their businesses and retrenched their employees as we are no longer able to pay salaries.

“As businessmen and women, our members acquired bank loans to keep their fuel retail outlets running on a daily basis across the nooks and crannies of Nigeria, to serve the teeming popula of Nigerians.

“However, it is demoralizing to know that many of our members have gone bankrupt and have become financially insolvent as a result of their inability to meet their financial obligations to their banks, arising wholly from their inability to get their monies from the NMDPRA,” Alhassan stated.

As a result, according to an IPMAN official, banks have taken over several of our members' commercial locations.

He stated, “NMDPRA have illegally taken our monies and this is the highest level of fraud. Sequel to this, we are appealing to Mr President to please intervene in this quagmire that we have been subjected to by the NMDPRA.

“We repeat, if our demands are not met within the shortest period, we have already put our members on standby across the nation, as law-abiding citizens, we are collectively prepared to withdraw our services, close every single outlet, and suspend lifting of products forthwith till our demands are fully met.”

The NMDPRA stated that the payment procedure was proceeding.

“Not everyone is paid at the same time; rather, the payment process is ongoing,” Seiyefa Osanebi, an agency representative, explained.

Meanwhile, Alhassan commented on the country's gasoline crisis, claiming that the situation was caused by the Nigerian National Petroleum Company Limited, or NNPCL, failing to supply enough petrol to dealers.

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

“We would like to categorically state that the scarcity of PMS (petrol) is wholly triggered by the NNPC and not by IPMAN or its members. Contrary to claims that IPMAN members are hoarding PMS products, we make bold to say that NNPC is the sole importer of PMS and therefore the sole cause of the present scarcity in Nigeria,” he stated.

IPMAN further stated that the Nigerian National Petroleum Company Limited (NNPCL) has been distributing fuel to private depots, causing these depots to raise the commodity's cost to as high as N850 per litre, frequently leading to higher pump prices across the country.

However, NNPCL told Nigerians that the current fuel crisis and delays would be rectified by Wednesday, May 1. Olufemi Soneye, NNPCL's Chief Communications Officer, reportedly issued this statement on Tuesday, April 30, in Lagos.

He added that the company now has a product availability over 1.5 billion liters, adequate to last for at least 30 days, and ascribed the statewide gasoline scarcity to logistical issues.