Business
IPMAN Discloses NNPCL’s N15 Billion Debt as Fuel Prices Surge
Abubakar Garima, the National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), has revealed that the Nigerian National Petroleum Company Limited (NNPCL) owes the association close to N15 billion.
Garima made this known during an appearance on Channels Television’s program, The Morning Brief, where he answered questions about the ongoing issues between IPMAN and NNPCL.
In response to a direct inquiry about the debt, Garima stated, “As it stands, NNPCL is owing IPMAN almost N15 billion.”
His comments bring to light a significant financial strain on the independent marketers, which has been building for some time due to what many industry players describe as delayed payments and other unresolved transactions.
This disclosure comes on the heels of NNPCL’s decision to increase the pump price of Premium Motor Spirit (PMS), commonly known as petrol, to a staggering N1,030 per litre.
The hike has left many Nigerians reeling from the shock, as they struggle to cope with an already challenging economic environment.
The new fuel price was noticed at various NNPCL stations in the nation’s capital, Abuja, on Wednesday, leading to widespread concerns.
The decision to increase the price has not been well-received by the public.
Citizens across the country have voiced their frustrations, condemning the latest fuel price hike, which many fear will worsen inflation and raise the cost of living even further.
With the price of fuel now over the N1,000 mark, transportation costs are expected to soar, which will have a ripple effect on food prices and essential goods.
This, in turn, has sparked debates about the government’s handling of fuel subsidies and the overall management of the oil sector.
For its part, IPMAN, a key stakeholder in the distribution and retail of petroleum products across Nigeria, has found itself in a difficult position.
The association’s members have long played a crucial role in ensuring the availability of fuel in both urban and rural areas.
However, the large debt that NNPCL owes IPMAN has added strain on the marketers, limiting their ability to operate efficiently and meet the demands of consumers.
The association has called on NNPCL to resolve the issue swiftly to prevent further disruptions in the supply chain.
NNPCL, which was previously a government-owned entity, transitioned into a limited liability company, a move aimed at allowing it to operate as a commercial enterprise.
However, the shift has not come without challenges. The oil giant has faced significant pressure to address Nigeria’s fuel scarcity and fluctuating prices, issues that have plagued the country for decades.
With the latest increase in fuel prices, many are questioning whether NNPCL is effectively managing its new role in the liberalized oil market.
The debt owed to IPMAN further complicates the situation, as independent marketers are critical to ensuring fuel reaches all parts of the country, particularly in areas where major oil companies may not operate.
Many are worried that if the debt remains unpaid, it could lead to a slowdown in fuel distribution, exacerbating the already precarious situation.
This latest development has reignited calls for reforms within Nigeria’s petroleum industry, with many stakeholders urging the government and NNPCL to adopt more transparent and effective policies to stabilize fuel prices and ensure the steady supply of petroleum products across the country.
At the heart of the issue lies the challenge of balancing market forces with the need to protect consumers from exorbitant prices, a task that has proven difficult for successive administrations.
As Nigerians grapple with the rising cost of petrol, many will be watching closely to see how NNPCL and IPMAN resolve their financial differences and whether the government will take action to alleviate the burden on citizens.
Concerns have been raised by The Central Bank of Nigeria (CBN) and the Ministry of Finance, concerning the Investment and Securities Bill which was proposed. The bill aims to replace 2007 Act and to update capital market regulations.
The CBN representative, Dr Tukur at the National Assembly hearing, opposed to the granting of the Securities and Exchange Commission over the public companies.
The Finance Minster, Wale Edun also emphasize on the impact of the bill and the provision it will offer the SEC board members. However the SEC Director General defended the bill and stated it has a benefitting role in Nigeria’s capital market globally.
Pastor Enoch Adeboye, the General Overseer of the Redeemed Christian Church of God, recently shared his concerns about a purported conspiracy involving an oil cabal in Nigeria, working in collusion with international oil companies (IOCs) to undermine the operations of private refineries, particularly the Dangote Petroleum Refinery.
Speaking at the November 2024 Abuja Special Holy Ghost service, Adeboye called on Nigerians to pray for divine intervention,
He believes that these unscrupulous oil marketers are intentionally working to create difficulties for the public, especially in light of their efforts to hinder the operations of the Dangote refinery.
Adeboye pointed out that Dangote’s refinery came as a response to the failure of the public refineries and the ongoing struggle Nigeria faces in trying to refine its own crude oil.
Despite being one of the world’s largest oil producers, Nigeria continues to rely heavily on importing refined petrol, a situation that has sparked frustration and concern among citizens.
“Are we under a curse?” Adeboye questioned, highlighting the irony that the country with vast oil reserves struggles to refine its own products.
He further praised Dangote for his determination to help alleviate the suffering of Nigerians.
“He is not my relative, not even from my village, and not a Christian. But as a Nigerian, he saw the suffering of the people and decided to build a refinery that could work,” Adeboye remarked.
In a positive development for Dangote Refinery, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has reached an agreement to buy petrol directly from the refinery, bypassing the usual importation channels.
However, Nigerians are still facing high fuel prices, with petrol being sold for as much as N1060 to N1200 at various NNPC stations and other retail outlets across the country, leaving many questioning when the country will truly see the benefits of its oil wealth.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) recently revealed that Premium Motor Spirit (petrol) will become more affordable for Nigerians, with a planned price reduction of N50 per liter.
This announcement came from IPMAN’s National President, Abubakar Maigandi, during a Tuesday interview with Channels Television.
Maigandi disclosed that the price cut follows a recent agreement between IPMAN and Dangote Refinery, which will now directly supply petrol to IPMAN members at a lower rate.
Under the new agreement, Dangote Refinery will sell petrol to IPMAN members at N940 per liter for depot purchases and N990 per liter for trucks.
With these adjusted rates, independent marketers who have been selling petrol for as high as N1,200 per liter in locations like Maiduguri will now be able to drop their prices to around N1,150 or potentially even lower.
Maigandi mentioned that the adjustment depends on location, as transport and logistics costs can vary, but he expects to see the benefits reach customers soon.
Maigandi also shared some insight into the new purchasing arrangements.
IPMAN members have two main options: they can either transport fuel directly from the Dangote Refinery to their depots or purchase it directly for trucks.
These measures are expected to streamline the distribution process, reducing dependence on the Nigerian National Petroleum Company Limited (NNPCL) as the primary distributor of Dangote’s petrol.
Currently, Nigerians are paying between N1,060 and N1,200 per liter at NNPCL outlets and other stations, so the new pricing arrangement with IPMAN is a welcome move for the average consumer facing high fuel costs.
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