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Fuel Scarcity Looms as IPMAN Issues 7-Day Ultimatum Over Unpaid N100B Claims

Monday Yakubu by Monday Yakubu
February 24, 2025
in Business
0

IPMAN

Fuel scarcity may soon hit Nigeria as the Independent Petroleum Marketers Association of Nigeria (IPMAN) has threatened to stop distributing petrol nationwide. The association issued a seven-day ultimatum on Monday, February 24, 2025, demanding that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) pay outstanding bridging claims of N100 billion.

In a statement released in Abuja, the IPMAN Depot Chairmen Forum, led by Chairman Yahaya Alhassan, accused the NMDPRA of failing to honor its commitments despite multiple meetings. Alhassan warned that if the payments were not made within the given timeframe, IPMAN members would withdraw their tankers from loading and distributing petroleum products, causing a severe fuel shortage across the country.

The issue revolves around unpaid bridging claims, which are funds meant to compensate marketers for transporting fuel to various parts of Nigeria. IPMAN said these payments had been promised over a year ago, particularly during a stakeholder meeting convened to prevent a previous strike by the Nigerian Association of Road Transport Owners (NARTO).

“The NMDPRA assured us that our claims would be settled within 40 days. Even the National Security Adviser, Malam Nuhu Ribadu, and the Director-General of the Department of State Services, Mr. Adeola Ajayi, were present at that meeting,” Alhassan said. “However, 40 days have turned into months, and we are still waiting.”

Due to the unpaid claims, nine major depots in Northern Nigeria, including those in Jos, Gusau, Minna, Suleja, Kaduna, Kano, Gombe, Yola, and Maiduguri, have been unable to operate.

IPMAN members are facing financial hardship, with some businesses closing and others losing their properties to banks due to unpaid loans. The association stated that some members had died from the financial strain, while others had to retrench staff or shut down completely.

“We have recorded the deaths of some of our members, the closure of their businesses, and the retrenchment of their workers. Many of our colleagues are losing their business premises to commercial banks because of the NMDPRA’s refusal to pay us,” the statement read.

The association also raised concerns about multiple levies imposed by the NMDPRA. One of the most controversial charges is a five percent commission on the sale of petrol stations, which Alhassan described as illegal and exploitative.

“When did NMDPRA become real estate agents? Why are they collecting a commission on the sale of petrol stations? This is completely unconstitutional,” he said.

Also Read:

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Additionally, marketers said they face high charges whenever they renovate their fuel stations, making it difficult to upgrade their facilities to meet industry standards.

With the deadline set, IPMAN has vowed to work closely with NARTO and the Petroleum Tanker Drivers (PTD) to enforce their demands. The association called on President Bola Tinubu and the federal government to intervene before the situation worsens.

“We call on the federal government to urgently intervene in this prolonged dispute. If our demands are not met, we will have no choice but to take necessary action, including stopping fuel supply,” Alhassan warned.

IPMAN urged its members to remain resolute and law-abiding while waiting for the government’s response.

If the association follows through on its threat, Nigeria could face a major fuel crisis, leading to long queues at petrol stations, increased pump prices, and severe transportation disruptions. Many Nigerians, already struggling with high fuel prices and economic hardship, may experience further difficulties if the government does not act quickly. For now, all attention is on the NMDPRA to see if it will respond before the seven-day deadline expires.

Tags: FuelIPMANLoomsScarcity

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