N15bn debt owed by NNPC Ltd threatens fuel supply — Marketers lament
…Indict NNPC Ltd of inflating fuel price
By Seun Ibiyemi
The ongoing fuel scarcity in Nigeria has taken a dire turn, with the Independent Petroleum Marketers Association of Nigeria (IPMAN) revealing that the Nigerian National Petroleum Company Ltd. (NNPCL) owes them a staggering N15 billion.
This is even as the association criticised the recent hike in petrol prices, accusing the national oil company, NNPC, of wanting to sell fuel to them at over N1,000 per litre while purchasing it for less than N900 from the Dangote refinery.
The National President of IPMAN, Abubakar Garima made this shocking disclosure on Channels TV Sunrise Daily, on Thursday.
“NNPC Ltd is owing IPMAN almost N15 billion. We have not loaded a single truck since the NNPC Ltd increased its pump price,” Garima stated.
“It has refused to give us the product we paid for and is asking us to complete the difference. Our money has been with the NNPC Ltd for almost three months now.”
This development has severe implications for the economy. The scarcity of fuel will lead to increased transportation costs, which will, in turn, drive up prices of goods and services. This will exacerbate the already high inflation rate in Nigeria.
Garima emphasised that IPMAN is seeking a resolution, stating, “Either they sell for us at the same rate they are getting the product from Dangote Refinery or refund us so we can buy directly from Dangote Refinery.”
He explained that NNPC sourced products from the Dangote refinery at a rate below N900 but then tried to sell to marketers at a higher rate, ranging from N1,010 to N1,050.
He called on the national oil company to sell at the same rate they purchased from the Dangote refinery to foster competition in pricing or to refund the marketers’ payments.
“As Independent Petroleum Marketers, we already have an outstanding debt by the NNPC Ltd. NNPC Ltd collected products through Dangote at a lower rate, which is not up to N900. But they are telling us to go and buy this product from them at the rate of N1,110 in Lagos, N1,045 in Calabar, N1,040 in Port Harcourt, N1050 in Warri.
“Our money is with them. We tell them that they should rather sell it at the rate Dangote is selling it or they should return our money back to our various accounts. We are asking them to sell it the way Dangote is selling. We are Nigerians like they are.
“If they sell it the same way Dangote is selling, we may decide to sell our own at N1,020 or N1,010 and create some kind of competition. Because any reduction in money is a difference,” Garima said.
In addition, the IPMAN president stated that the recent price adjustment signals a full deregulation of the downstream sector.
He noted that with the deregulation, and NNPC no longer being the sole importer of petrol or the exclusive off-taker from the Dangote refinery, competition is expected to emerge in the sector.
He added that marketers now have the opportunity to source their petrol, either through direct importation or purchases from the Dangote refinery.
“Now that the downstream sector is fully deregulated, we independent marketers will be fully engaged in the business. Before it was only NNPC bringing this product.
“At the same time, it’s only NNPC that has an offtake in Dangote refinery. We can use any vessel because we are allowed to go and import ourselves.
“Normally, the reason we have a lot of challenges is because before it’s only NNPC that is allowed to bring it, and the only one that was able to buy from Dangote Refinery. But with this current arrangement whereby Dangote will buy in naira and sell in naira, Dangote will give us this product directly, not through the NNPC,” he added.
As Nigeria teeters on the brink of economic chaos, the government must intervene to resolve the fuel scarcity.
Failure to act will exacerbate the suffering of citizens and undermine the nation’s economic stability.
