The Independent Petroleum Marketers Association of Nigeria (IPMAN) has given the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) a seven-day ultimatum to settle outstanding bridging claims totaling N100 billion. The association has warned that failure to meet this deadline will result in a nationwide withdrawal of its services, potentially triggering a severe scarcity of Premium Motor Spirit (PMS), commonly known as petrol, across the country. This development, announced during a press conference in Abuja on Monday, February 24, 2025, underscores the growing tensions in Nigeria’s downstream petroleum sector.
Yahaya Alhasan, Chairman of the IPMAN Depot Chairmen Forum, delivered the association’s grievances, emphasizing the NMDPRA’s repeated failure to honor payment commitments. The bridging claims, which relate to transportation subsidies deducted from marketers’ payments for petroleum products in 2024, have remained unpaid despite assurances made 40 days ago in the presence of National Security Adviser Nuhu Ribadu. Alhasan warned, “If NMDPRA doesn’t pay our money within seven days, we are going to withdraw our services across the nation.”
A History of Unresolved Debts
This is not the first time IPMAN has raised concerns over unpaid claims. The government previously disbursed N74 billion to oil marketers for bridging claims in 2022 and an additional N2.7 billion for freight differentials as recently as June 6, 2024. However, the current N100 billion debt has lingered for over a year, exacerbating financial strain on IPMAN members. Alhasan noted that the issue was also a key demand during a stakeholders’ meeting convened to avert a strike by the Nigerian Association of Road Transport Owners (NARTO) earlier this year. Despite promises made at that meeting, the NMDPRA has failed to act, leaving marketers in a precarious position.
The unpaid claims have had a devastating impact, particularly on depots in northern Nigeria. Alhasan revealed that operations at the Jos, Gusau, Minna, Suleja, Kaduna, Kano, Gombe, Yola, and Maiduguri depots have ground to a halt due to the financial bottleneck. “These debts are not ours; they belong to marketers and were deducted from us at the point of payments for products,” he clarified, highlighting that the funds are not government handouts but rightful earnings withheld by the NMDPRA.
Controversial Levies Add to IPMAN’s Woes
Beyond the unpaid claims, IPMAN has accused the NMDPRA of imposing unconstitutional and anti-developmental levies on its members. One particularly contentious charge is a five percent commission levied on the sale of petrol stations, which Alhasan criticized as an overreach of regulatory authority. “When has the NMDPRA turned herself into a real estate agent, collecting a commission on sales of Retail Petrol Outlets?” he questioned, arguing that such practices stifle growth in the downstream sector.
Additionally, IPMAN members face excessive fees when attempting to renovate their petrol stations to align with international best practices. Alhasan described these levies as “bizarre” and burdensome, noting that they hinder efforts to modernize outlets and maintain operational standards. “These are just a few of the many distressing levies they have forced on us; they are not only anti-developmental, they are also unconstitutional, and we are demanding their immediate suspension,” he stated.
Economic Fallout and Threats of Collective Action
The prolonged non-payment of bridging claims has unleashed a cascade of economic hardships on IPMAN members. Alhasan recounted tragic consequences, including loss of lives, business closures, staff layoffs, and the seizure of premises by commercial banks unable to recover loans from struggling marketers. “We have continued to face the tragic consequences of this refusal to pay, and it has reached a critical point,” he lamented.
In response, IPMAN is preparing to escalate its actions by partnering with sister organizations, including the Petroleum Tanker Drivers (PTD) and NARTO. The association owns a significant number of petroleum tankers operated by these groups and has threatened to withdraw them from loading products if the NMDPRA does not comply. “We may be forced to withdraw our tankers from loading petroleum products in a view to enforce the immediate payment of our bridging and NTA claims,” Alhasan warned.
A Call for Federal Intervention
IPMAN has appealed to President Bola Tinubu’s administration to intervene in the escalating dispute. The association views the federal government as the last line of defense in resolving what it describes as a “prolonged” conflict with the NMDPRA. “We hereby call on the federal government of Nigeria to fully intervene in these disputes between Depot Chairmen of the Independent Petroleum Marketers Association of Nigeria and the Nigerian Midstream & Downstream Petroleum Regulatory Authority,” Alhasan urged.
The association emphasized its commitment to lawful conduct but stressed that its patience has worn thin. With the seven-day ultimatum beginning on February 24, 2025, IPMAN has signaled its readiness to take immediate action if its demands remain unmet. The potential withdrawal of services could disrupt fuel supply chains nationwide, placing additional pressure on an already strained economy.
Broader Implications for Nigeria’s Petroleum Sector
The standoff between IPMAN and the NMDPRA highlights deeper systemic challenges in Nigeria’s downstream petroleum industry. Bridging claims, designed to offset transportation costs for marketers, have long been a point of contention, with delays in payment undermining operational stability. Coupled with what IPMAN deems exploitative regulatory practices, the situation threatens to erode confidence in the sector and exacerbate fuel scarcity risks.
As the deadline looms, all eyes are on the NMDPRA and the federal government to avert a crisis. For now, IPMAN remains steadfast in its resolve, signaling that this latest ultimatum is not an empty threat but a critical step to reclaim what its members are owed.
