The Independent Petroleum Marketers Association of Nigeria (IPMAN) has issued a warning of a potential nationwide strike, citing the Nigerian Midstream and Downstream Petroleum Regulatory Authority’s (NMDPRA) failure to settle outstanding bridging claims totaling N100 billion.
Bridging claims refer to the costs incurred by oil marketers in transporting petrol from depots to approved zones across the country, ensuring a uniform pump price. In May 2022, IPMAN had accused NMDPRA of owing its members over N500 billion in bridging claims. Despite NMDPRA’s assurances in September of that year that they were working to pay the outstanding claims, the matter has remained unresolved.
The issue has now resurfaced, with IPMAN, on April 6, 2024, threatening to withdraw its services unless the NMDPRA clears the debt. Speaking during a press conference on Monday, Abdul Ibrahim, the Gombe depot chairman of IPMAN, stated that oil marketers had given NMDPRA a seven-day ultimatum to settle the debt or face a nationwide shutdown of services.
“This is one year after our last demand for the payment of more than N100 billion owed to our members in bridging claims, but the management of the NMDPRA has failed to address our demand,” Ibrahim stated.
Ibrahim further explained that despite assurances from NMDPRA, including promises made in the presence of National Security Adviser Nuhu Ribadu, the authority has not made good on its pledge to pay the debt, which was originally promised to be settled within 40 days.
“Forty days have now turned into months with no resolution or hope of our payment,” Ibrahim lamented.
He added that nine northern depots—Jos, Gusau, Suleja, Kaduna, Kano, Gombe, Yola, and Maiduguri—had completely ground to a halt due to the lingering debt. He also pointed out the severe consequences for IPMAN members, including business closures, layoffs, and the repossession of business premises by commercial banks.
“These debts are our members’ money, which was deducted from our payments at the point of product purchase to settle bridging allowances. Unfortunately, NMDPRA’s refusal to pay us our dues has resulted in devastating consequences for our members,” Ibrahim said.
Ibrahim emphasized that the situation had grown intolerable, prompting the association to consider collective action with other industry stakeholders, including the Petroleum Tankers Driver (PTD) and the Nigerian Association of Road Transport Owners (NARTO).
As a part of the collective action, Ibrahim warned that IPMAN members, who also own many of the tankers, might be forced to withdraw their vehicles from loading petroleum products, further escalating the crisis.
In addition to the unpaid bridging claims, Ibrahim raised concerns about alleged excessive levies imposed by NMDPRA on IPMAN members, which he described as unconstitutional and anti-developmental. He argued that these levies, which are not part of government allocations, are further burdening the oil marketers and their businesses.
“I want to appeal to President Bola Tinubu to urgently intervene in this prolonged dispute between IPMAN and NMDPRA,” Ibrahim said, calling for immediate action to resolve the matter and prevent a nationwide strike.
Should the strike go ahead, it would cause significant disruptions in the distribution of petroleum products across Nigeria, with potentially serious economic consequences.
