The Independent Petroleum Marketers Association of Nigeria has asked the Nigerian National Petroleum Company Limited to pay the long-held petroleum equalisation funds owed to its members.
The marketers also urged the NNPC Group Chief Executive Officer, Bayo Ojulari, to clear the loading tickets of its members by supplying them with the petroleum products they paid for.
IPMAN Publicity Secretary, Chinedu Ukadike, who made the call, commended the new management of the NNPC for generating over N20tn in four months, but the company still owes marketers up to N25bn in unpaid equalisation funds.
Before deregulation, the Petroleum Equalisation Fund was set up by the Federal Government to reimburse petroleum marketers for any losses suffered arising from the sale of petroleum products at uniform prices throughout Nigeria.
It was a form of subsidy managed by the defunct Petroleum Equalisation Fund Management Board.
Formed in 2021, the Nigerian Midstream and Downstream Petroleum Regulatory Authority encompasses a merger of three defunct regulatory agencies: the Petroleum Products Pricing Regulatory Agency, the Petroleum Equalisation Fund Management Board, and the midstream and downstream divisions of the defunct Department of Petroleum Resources.
After President Bola Tinubu announced an end to the fuel subsidy regime, the Federal Government closed down the Petroleum Equalisation Fund, in line with the provisions of the Petroleum Industry Act. Meetings were reportedly held with marketers in 2023 to reconcile accounts and pay those still owed by the government. However, it was learnt that members of IPMAN are still owed by the Federal Government up to the time of filing this report.
Ukadike expressed optimism that the new management of the NNPC will continue to wax stronger and pay the debt, especially with the current market liberalisation.
“However, we, the independent marketers, have been calling on NNPC to reimburse us for our money or give us products from some of our tickets that are being tied down in their system through their portal. Though they have started, it is not in full force. So, we are appealing to the GCEO to look at some of the outstanding tickets and clear them.
“And also, the issue of pending funds that are in PEF – since they have made gains, they should also try and clear it so that marketers can have their money and compete in this deregulated economy and ensure energy security. The debt used to be over N40bn, but I think by now, the money has shrunk to around N25bn,” Ukadike said.
Asked if there is any communication with the NNPC about the debts, he replied, “They have our complaints already. At our last meeting with the GCEO, who was represented by the Director of Midstream Operations, he took note of these issues. I think they acted swiftly. But there are also some lingering payments left behind.”
He advised the NNPC and the regulator to compile all the bridging claims and pay them once, saying this would help fuel distribution. “What I am also saying is that if they can have a total compilation of all these bridging claims and clear it at once, it will help the system and make distribution more viable, and Nigerians will enjoy energy security,” he stated.
Ukadike explained that he could not be specific about the number of tickets being held in the NNPC portal and the cost. He said marketers paid for fuel, but they have not been able to lift the fuel they paid for, calling on the NNPC to do something about it.
“I can’t quantify the number of tickets, but I know that it’s a sizeable number,” he stated. Speaking further, Ukadike noted that the petroleum industry is taking a good shape with no more fuel scarcity. However, he maintained that the only issue marketers face this time is the price war.
“The industry has taken a very good shape, and that shape the industry has taken has allowed broadened participation and distribution. You can also find out now that there is nothing like fuel scarcity anywhere.
“The issue we are having now is a price war. And that price war is the essence of the liberalisation of the market. Demand and supply are now determining the market prices and the pricing of petroleum products. Marketers have choices, and commuters can now obtain petroleum products wherever, however, and whenever they want,” he said.
When contacted, a senior official of NNPC promised to look into the matter and respond.
