Oil marketers under the Independent Petroleum Marketers Association of Nigeria (IPMAN) confirmed on Sunday that the Nigerian National Petroleum Company Limited (NNPC) has commenced the refund of ₦15 billion owed to its members. The refund follows months of disputes over payments made to the NNPC for petrol supply, which the marketers claimed they neither received nor were reimbursed for.
IPMAN members previously paid the ₦15 billion to the NNPC for petrol supply, but the product was not delivered. In addition, the NNPC had been asking members to add more funds to cover price differences, a request that frustrated many marketers.
“It is unacceptable for the NNPC to ask us to add more money after withholding our payments for months without supplying the product,” lamented Maigandi Shettima, head of the association, during a recent interview. He emphasized that the marketers had been waiting for the product or a refund for almost three months.
However, following a peace deal brokered by the Department of State Service (DSS), the NNPC has now started refunding the money to the marketers’ accounts. IPMAN’s spokesperson, Chief Chinedu Ukadike, confirmed that the refund process had begun, adding that other resolutions were also reached during a meeting with the DSS and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Ukadike explained that, in addition to the refund, the NMDPRA had agreed to issue licenses for marketers to off-take fuel directly from the $20 billion Dangote refinery. This new arrangement allows oil marketers to import petrol, provided they have the necessary capacity.
Moreover, the NMDPRA also approved ₦10 billion to settle debts owed to marketers under the Petroleum Equalization Fund (PEF), another significant step towards resolving the financial disputes. The NNPC also agreed to reduce the price of petrol sold to marketers from ₦1,040 per liter to ₦1,000.
As part of the ongoing restructuring in the downstream sector, the Finance Minister, Wale Edun, announced a new “Direct Purchase Model,” allowing petroleum marketers to negotiate terms directly with local refineries like Dangote’s. This new framework is expected to create a more competitive market and streamline the supply chain for petroleum products in Nigeria.
Ukadike expressed optimism about the new arrangements and stated that further meetings with Dangote refinery officials would be scheduled to finalize pricing and loading processes.
Madukwe B. Nwabuisi is an accomplished journalist renown for his fearless reporting style and extensive expertise in the field. He is an investigative journalist, who has established himself as a kamikaze reporter.
