Nigeria’s fuel marketers warn unpaid transport-cost debts threaten supply stability

Nigeria’s Independent Petroleum Marketers Association (IPMAN) has called for urgent government intervention to resolve long-standing debts inherited from the defunct Petroleum Equalisation Fund (PEF), warning that prolonged non-payment could increase pressure on downstream fuel supply.

The association’s concerns follow a National Executive Council (NEC) meeting held in Abuja. According to minutes reported by The Punch, IPMAN leaders accused the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of failing to honour commitments to clear verified reimbursement claims accumulated before PEF’s dissolution under the Petroleum Industry Act.

IPMAN President Abubakar Maigandi told The Punch that members had “exercised patience beyond reasonable limits”, noting that the association suspended a previous strike plan in reliance on assurances that payments would be made promptly. He said the regulator had not met those commitments, despite several rounds of engagement.

Maigandi said senior figures urged IPMAN to withdraw an earlier ultimatum, but many marketers still had not been reimbursed. He appealed to Minister of State for Petroleum Resources Heineken Lokpobiri to intervene to ensure the backlog is settled, warning that further delays could “leave us with no option”.

He told The Punch the association had not issued any new ultimatum, adding that the exact amount owed would be confirmed following a reconciliation meeting expected this week. He said marketers operating on tight margins continued to face financial strain as a result of the outstanding claims.

The PEF scheme previously reimbursed marketers for transporting petrol and diesel to distant or hard-to-reach markets, allowing pump prices to remain broadly uniform nationwide. The system accumulated a sizeable backlog before the transition to the PIA framework, owing to rising logistics costs, verification delays and funding constraints.

IPMAN commended the Nigerian National Petroleum Company Ltd (NNPCL) for steps to resolve its own outstanding liabilities to marketers. Maigandi told The Punch the new management had begun verifying pending balances and releasing products once reconciliations were completed.

The association also reiterated support for the 650,000 barrel-per-day (bpd) Dangote Refinery. IPMAN National Secretary Shettima said in comments reported by The Punch that direct access to petrol from the facility could help reduce pump prices and stabilise the downstream market.

Shettima also defended the federal government’s removal of the fuel subsidy in May 2023, describing it as a measure that “saved Nigeria hundreds of billions” of Naira and opened new investment opportunities across refining and distribution.