The Federal Government has responded to claims by Independent Petroleum Marketers Association Nigeria (IPMAN), Suleja Branch, on product scarcity due to non-payment of bridging claims, stating that it has paid the sum of N74 billion as claims to oil marketers.
This was disclosed in a statement signed by Mr Kimchi Apollo, the General Manager, Corporate Communications, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) on Wednesday in Abuja.
Bridging claims are the costs of transporting petroleum products from refineries and depots to fuel stations.
What the NMDPRA is saying
The agency said that so far it has paid “N71,233,712,991 bridging claims and another N2,736,179,950.84 freight differentials to oil marketers as of June 6, 2022″.
They added that the authority’s attention was drawn to allegations made by the Independent Petroleum Marketers Association Nigeria (IPMAN), Suleja Branch on product scarcity as a result of non-payment of bridging claims
In his statement, Apollo said, “Major Oil Marketers Association of Nigeria (MOMAN) received N9.96 billion while IPMAN members were paid N42.30 billion. NNPC Retails received N6.66 billion while DAPPMAN members were paid N12.30 billion, which translated to a total of N73.97 billion.”
He also disclosed that the Chief Executive of the NMDPRA, Mr. Farouk Ahmed, at a meeting on May 17 with IPMAN discussed bridging payment extensively, which was explained and agreed upon by IPMAN.
He said that Ahmed assured IPMAN of NMDPRA’s willingness to continue the payment of outstanding claims to promote seamless operations, citing that NMDPRA made an 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 currently being implemented.
What you should know
- Nairametrics reported last month that Nigeria’s Independent Petroleum Marketers Association of Nigeria (IPMAN) warned that the refusal of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to pay its members their bridging claims of N500 billion could lead to a fuel crisis.
- The Federal Government also responded to claims by the Independent Petroleum Marketers Association of Nigeria that bridging claims of N500 billion could lead to a fuel crisis, stating that since December 2021, over N58 billion has been disbursed to oil marketers out of which N34 billion went directly to members of the IPMAN.
