IPMAN Urges DSS to Intervene as NMDPRA Still Owes Over N100 Billion in Bridging Claims

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has brought to public attention the continuing issue of unpaid bridging claims by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). The association has asked the Department of State Services (DSS) to step in and help resolve this financial dispute that is severely impacting petroleum marketers across the country.

Bridging claims refer to reimbursements owed to petroleum marketers for the transportation costs they incur in distributing fuel across Nigeria. These claims are critical to ensuring the smooth and uniform delivery of petroleum products nationwide. However, the NMDPRA, the regulatory body overseeing Nigeria’s midstream and downstream petroleum sectors, is reported to still owe over N100 billion in outstanding bridging claims to marketers.

IPMAN’s National President, Abubakar Shettima, recently met with officials from the DSS to highlight the severity of the issue. While acknowledging that the DSS has facilitated some partial payments towards these claims, Shettima emphasized that a large portion remains unpaid. The failure to fully settle these debts has put many marketers under intense financial pressure.

The association disclosed that some depots, particularly in the northern part of Nigeria, have been forced to close their operations due to the prolonged delays in payment. This has led to business closures, job losses, and reduced capacity in fuel distribution, thereby threatening fuel supply stability across the country.

IPMAN has repeatedly pressed the NMDPRA to clear the outstanding bridging claims. The association has even issued ultimatums demanding immediate payment, signaling its frustration with the slow pace of resolution. Despite public assurances by the NMDPRA, including a promise made in the presence of Nigeria’s National Security Adviser and the DSS Director-General to settle the claims within 40 days, these payments have not been fully realized.

The association argues that the inability of the regulatory authority to honor these financial obligations undermines the operational viability of independent marketers. These marketers play a crucial role in Nigeria’s fuel supply chain, ensuring that petroleum products reach consumers beyond the major cities.

IPMAN’s calls for intervention from the DSS aim to expedite the settlement process and hold the NMDPRA accountable. The association believes that only with swift and decisive action can further damage to the fuel distribution network be avoided.

In addition to the financial strain on marketers, the delay in payment of bridging claims raises concerns about transparency and efficiency within the NMDPRA. It also reflects broader challenges faced by Nigeria’s oil and gas sector, where bureaucratic delays and mismanagement have frequently hampered progress.

The persistent issue of unpaid bridging claims has broader implications for Nigeria’s economy and everyday citizens. Fuel scarcity or erratic supply caused by operational disruptions can lead to increased prices and affect transportation, industry, and the cost of living.

IPMAN has appealed directly to President Bola Tinubu, urging his administration to prioritize the resolution of this matter. The association stresses that prompt settlement will not only restore confidence among marketers but also contribute to stabilizing the nation’s fuel supply and prices.

Moreover, the association warns that continued delays could exacerbate the challenges faced by independent marketers, potentially forcing more depots to shut down. This would reduce competition in the downstream petroleum sector, possibly leading to monopolistic tendencies and higher fuel costs for consumers.

The government’s response to this crisis will be closely watched by stakeholders in the oil and gas industry, consumer groups, and the wider public. Effective resolution could serve as a positive signal of Nigeria’s commitment to reforming and improving governance in the petroleum sector.

In conclusion, IPMAN’s appeal to the DSS and the federal government highlights the urgent need to address outstanding bridging claims owed by the NMDPRA. The issue is not just a financial dispute but a critical factor in maintaining the stability and reliability of Nigeria’s fuel distribution system.

By settling these claims promptly, the government can ensure the sustainability of independent petroleum marketers and safeguard the continuous flow of petroleum products across Nigeria. This, in turn, will support economic stability and the welfare of millions of Nigerians who depend daily on reliable fuel supply.