The Independent Petroleum Marketers Association of Nigeria (IPMAN) has raised serious concerns about potential nationwide fuel supply disruption due to unpaid debts by regulatory authorities spanning more than three years.
Mounting Pressure on Petroleum Marketers
During a recent National Executive Council meeting held in Abuja, IPMAN leadership expressed frustration with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for failing to settle verified claims inherited from the former Petroleum Equalisation Fund.
National President Abubakar Maigandi revealed that members had demonstrated exceptional patience despite repeated assurances from the regulator that the debts would be cleared promptly. The association had previously suspended a planned industrial action based on these commitments, yet most marketers continue to await their payments.
Maigandi emphasized that the outstanding debts are creating severe financial strain on operators who already function within extremely narrow profit margins. While no new ultimatum has been issued, the association expects a reconciliation meeting this week to determine the exact amount owed to marketers across the country.
Historical Context of the Debt Crisis
The unresolved financial claims originate from the operations of the Petroleum Equalisation Fund, which was designed to maintain uniform pump prices nationwide by reimbursing marketers for transportation costs incurred when moving petroleum products to remote or challenging locations.
Over time, multiple factors including unresolved claims, inadequate verification systems, escalating transport expenses, and accumulated backlogs have combined to create substantial unpaid obligations that now threaten the stability of Nigeria's fuel distribution network.
IPMAN has urgently appealed to the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, to intervene directly and compel the NMDPRA to clear the outstanding debt backlog. The association warned that continued inaction might leave marketers with no alternative but to take measures that could impact fuel availability.
Positive Developments in the Sector
In contrast to the NMDPRA situation, IPMAN commended the Nigerian National Petroleum Company Limited (NNPC Ltd.) for promptly addressing its outstanding obligations to marketers. Maigandi specifically praised the current NNPC management under Bayo Ojulari for taking marketers' concerns seriously and implementing concrete steps to resolve payment issues.
The association noted that NNPC has begun compiling names of marketers with pending balances and allowing them to resume product loading once payments are finalized, demonstrating a commitment to maintaining smooth operations within the petroleum distribution chain.
IPMAN also reaffirmed its strong support for the Dangote Refinery, expressing confidence that sourcing petrol directly from the facility will ultimately reduce pump prices and stabilize Nigeria's fuel market. The association defended President Bola Tinubu's controversial decision to remove fuel subsidies, noting that the move has saved the country significant resources while encouraging new investments in refining capacity and oil distribution infrastructure.
The ongoing debt situation highlights the continuing challenges in Nigeria's petroleum sector despite recent reforms, with marketers caught between regulatory delays and operational realities that could potentially affect millions of Nigerian consumers who depend on consistent fuel supply for daily activities and economic operations.
