Fuel scarcity looms as IPMAN threatens nationwide strike over unpaid bridging claims

Nigeria may soon face a nationwide scarcity of Premium Motor Spirit (PMS), commonly known as petrol, as the Independent Petroleum Marketers Association of Nigeria (IPMAN) has issued a seven-day ultimatum to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) over unpaid bridging claims.

IPMAN, in a communique released by its depot chairmen on Monday, accused the NMDPRA of failing to honor its commitment to settle outstanding bridging claims amounting to N100 billion.

The association expressed frustration, stating that despite promises made during a stakeholders’ meeting over a year ago, the payments remain unpaid.

The association warned that if the claims are not settled within seven days, its members will withdraw their services across the country, potentially leading to widespread fuel shortages.

Presenting the communique in Abuja on Monday, chairman of IPMAN Depot Chairmen Forum, Yahaya Alhassan, said the association threatened to withdraw its tankers from loading petroleum products and distributing same if the claims are not settled within seven working days beginning this Monday.

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This move, unless averted, would severely disrupt fuel distribution nationwide.
“One of those promises was made by the NMDPRA, at the stakeholders meeting convened on the eve of the last strike action declared by NARTO.”

At the stakeholders meeting, the Nigerian Association of Road Transport Owners (NARTO) listed the same IPMAN bridging claims as part of their demands before the strike action would be called off.

The NMDPRA promised to offset the bridging claims in 40 days even in the presence of the National Security Adviser, Mal. Nuhu Ribadu, and the DG DSS, Mr. Adeola Ajayi. “However, 40 days have today become months with no hope of our payment,” it lamented.

The nine Northern depots comprising of Jos depot, Gusau depot, Minna depot, Suleja depot, Kaduna Depot, Kano depot, Gombe depot, Yola Depot and Maiduguri depot have become completely grounded over this lingering debt.

“For the avoidance of doubt, it is imperative to state again that this debt being owed us are monies belonging to marketers, and which were deducted from us at the point of payments for products, in order to settle our bridging allowances.

“We have also continued to record deaths of our members, closure of their businesses, retrenchment of staff, and the take-over of their business premises by the commercial banks, all arising from this refusal of the NMDPRA to pay us our monies.

“Another worrisome development is the NMDPRA’s imposition of several abnormal levies on our members.

“Chief amongst them is the imposition of a five per cent commission accruable to them at the sale of any petrol station outlet in Nigeria. Tell me, when has the NMDPRA turned herself into real estate agents; collecting a commission on sales of Retail Petrol Outlets?There is no gainsaying the truism that the downstream retail industry is an ever evolving one.

“And so, as IPMAN members, we go the extra mile to renovate our outlets occasionally, to meet with international best practices.

“However, the NMDPRA has also made this very difficult for us, as they have also subjected our members to paying bizarre levies whenever we deem it fit to renovate our petrol outlets.

“These are just a few of the many distressing levies they have forced on us; this are not only anti-developmental, they are also unconstitutional, and we are demanding their immediate suspension.

“As a forum of law-abiding Nigerians, we sincerely believe that we have given the NMDPRA enough time to pay us our monies in bulk and clear the bridging claims

“But in view of their constant refusal, we have therefore decided to liaise with our sister organizations; the PTD and NARTO in order to take a collective action in due course.

“As members of IPMAN, it is important to state that we also own sizeable numbers of petroleum tankers driven by the PTD, and 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.

‘We hereby call on the federal government of Nigeria headed by Pres. Bola Tinubu to fully intervene in these prolonged disputes between Depot Chairmen of the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Nigerian Midstream & Downstream Petroleum Regulatory Authority (NMDPRA).

“We will not hesitate to immediately take actions in due course if our demands are not met immediately beginning from today Monday 24th February 2025.

“We call on our members nationwide to however remain resolute and law abiding, as we wait for our demands to be met and addressed by the NMDPRA,” it stated.