The lingering fuel scarcity in the Federal Capital Territory (FCT) is set to worsen with the withdrawal of petrol supply by the Independent Petroleum Marketers Association of Nigeria (IPMAN), Suleja, Niger State branch, yesterday, as it commenced a week withdrawal of its services.
It attributed the action to the non-payment of its 12-month bridging (transportation claims) by the Petroleum Equalisation Fund, PEF) now Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA).
IPMAN’s Suleja Branch Chairman, Alhaji Mohammed Shaibu, who briefed reporters of the commencement of the industrial action in Abuja, said his members were owed over N50 billion.
Recalled that there is a petroleum depot in Suleja, which is the nearest to the FCT.
A communique signed by Shaibu and the branch’s Secretary, Alhaji Hamman Yahaya, read in part: “As a result of non-payment of our bridging allowances by the management of Petroleum Equalisation Fund (PEF) under Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) consequent upon the non-implementation of the marketers bridging claims. The independent marketers association under Suleja depot covering Abuja and environs has unanimously resolved to withdraw our services. The petroleum Equalisation Fund (PEF) is owing us bridging claims from 2021 till date.”
Shaibu insisted that “all our claims should be paid without any delay, as 85 per cent of our staff were being laid-off because there is no money to pay their salaries”.
The chairman added that due to the non-payment of the claims, members have reduced the supply of petroleum products to Abuja and environs, because they lack money to purchase the products and maintain their trucks to transport this product from the south to Abuja.
He said the problems had resulted in the unabated scarcity of petrol being experienced in Abuja and environs.
Continuing, Shaibu said: “The new management of Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) is short-hanging marketers by selecting few marketers for payment, while others were not been paid.
“We are surprised at the head of the midstream and downstream have been disseminating using different media houses that he has paid the marketers, while the available records show that PEF is owing marketers 12 months.
“Available records show that his predecessors cultivated a serene business environment with the marketers, by ensuring that our claims were not delayed. His disposition at the helm of affairs clearly shows that he’s out to kill marketer’s business,” Shabu said, adding that all effort made to reach out to the head of the midstream and downstream was not successful.
He, therefore, urged the public to blame the NMDPRA responsible for the scarcity being experience across the petrol station in Abuja and environs.
“Therefore, we are appealing to the Presidency and NNPC as a matter of urgency to intervene, and ensure that marketers money owed are paid as quickly as possible, so as to ameliorate the suffering of the masses,” Shaibu urged.
In a related development, the NMDPRA yesterday said it has paid N74 billion as bridging claims in seven months.
A statement from NMDPRA’s Corporate Communications Department read: “The attention of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has been drawn to allegations made by Independent Petroleum Marketers Association Nigeria (IPMAN Suleja Branch) on product scarcity as a result of non-payment of bridging claims.
“The Authority Chief Executive of the NMDPRA at a meeting held on 17th May 2022 with IPMAN, bridging payment was discussed extensively, and the processes explained and agreed upon by IPMAN.
“He assured IPMAN of NMDPRA’s willingness to continue making payment of outstanding claims to promote seamless operations. Pursuant to the meeting, the NMDPRA went ahead to make additional payment of N10 billion in June and sought for an upward review of the freight rate which was approved by President Muhammadu Buhari and is currently being implemented.
“The Authority wishes to reiterate that bridging payment is an ongoing process which is carried out after due verification exercise by the Authority and Marketers.”
The statement further noted: “So far, the Authority paid N71,233,712,991 bridging claims and another N2,736,179,950.84 freight differentials to the Marketers as at 6th June, 2022.
“A breakdown of payment made to Marketers is as follows: Major Marketers (MOMAN) received N9,958,777,487.24, IPMAN members were paid N42,301,923,616.96, NNPC Retails N6,661,459,118.61 while DAPPMAN members were paid N12,303,195,651.57, these translate to a total of N73,969,892,941.84.
The NMDPRA added: “It is disheartening that despite these payments and increase of N10 per litre bridging cost, which was approved by President Muhammadu Buhari two weeks ago, IPMAN could turn around to accuse the NMDPRA of insensitivity.
“The NMDPRA remains committed to ensuring a safe, efficient, and effective conduct of Midstream and Downstream petroleum operations,” the NMDPRA statement noted.
