The Independent Petroleum Marketers Association of Nigeria (IPMAN) has appealed to the Nigerian National Petroleum Company Limited (NNPC Ltd) to settle outstanding petroleum equalisation funds and clear pending product loading tickets owed to its members.
Speaking in Abuja on Thursday, IPMAN’s Publicity Secretary, Mr. Chinedu Ukadike, said the debts have lingered for years despite repeated engagements with government agencies. He noted that the funds, estimated at around ₦25 billion, are crucial to the survival of marketers in Nigeria’s deregulated petroleum market.
Ukadike commended the new management of the NNPC under the Group Chief Executive Officer, Mr. Bayo Ojulari, for its performance so far, especially the reported revenue of over ₦20 trillion generated within four months. However, he urged the company to extend its efforts toward resolving outstanding obligations to marketers.
“Independent marketers have been calling on NNPC to reimburse us for our money or give us products from tickets already tied down in their system. Though they have started, it is not in full force. We appeal to the GCEO to look at some of the outstanding tickets and clear them,” Ukadike stated.
Before deregulation, the Petroleum Equalisation Fund (PEF) was established by the Federal Government to ensure uniform fuel prices nationwide by reimbursing marketers for transportation costs and losses. The scheme was managed by the Petroleum Equalisation Fund Management Board, which was later merged into the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) alongside the Petroleum Products Pricing Regulatory Agency (PPPRA) and parts of the Department of Petroleum Resources (DPR).
Following President Bola Tinubu’s removal of fuel subsidies in 2023, the PEF was formally closed in line with the Petroleum Industry Act. The government held reconciliation meetings with marketers to address outstanding claims, but several payments remain unresolved to date.
Ukadike explained that the debt, which once stood at more than ₦40 billion, has reduced to about ₦25 billion but remains a burden on marketers who are struggling to operate in the liberalised market.
“The issue of pending funds that are in PEF should be cleared so that marketers can have their money and compete in this deregulated economy. This will also help to guarantee energy security. The debt used to be over ₦40bn, but I think by now, the money has shrunk to around ₦25bn,” he added.
When asked about communication with NNPC, Ukadike confirmed that the company is aware of the complaints. He said IPMAN had previously raised the matter during a meeting with the GCEO, who was represented by the Director of Midstream Operations. While some payments were processed afterwards, several claims remain unsettled.
He urged both NNPC and the NMDPRA to adopt a holistic approach by compiling and clearing all bridging claims at once, instead of partial settlements.
“If they can have a total compilation of all these bridging claims and clear them at once, it will help the system and make distribution more viable. Nigerians will then enjoy steady fuel supply and improved energy security,” he said.
On the issue of loading tickets, Ukadike revealed that many marketers have paid for petroleum products but have not been able to lift their allocations due to technical delays on the NNPC’s portal. He declined to give specific figures but described the volume of affected tickets as sizeable.
“I can’t quantify the number of tickets, but I know it’s a large number. Marketers have already paid for products but are yet to access them. We call on NNPC to urgently address this matter,” he stated.
Despite the challenges, Ukadike acknowledged that Nigeria’s petroleum market has recorded significant improvements, particularly the elimination of fuel queues. He, however, observed that the current market dynamics are now defined by stiff price competition.
According to him, the industry is “taking good shape” under deregulation, but settling outstanding debts will be vital in strengthening the financial position of independent marketers and ensuring fair competition.
