FG to IPMAN: We’ve paid over N58bn to oil marketers as bridging claims

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has disclosed that it has paid oil marketers bridging claims worth over N58 billion within six months.

This was made known by the authority in response to an assertion by the Independent Petroleum Marketers Association of Nigeria (IPMAN) over the non-payment of bridging claims by the NMDPRA. 

“The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has taken note of concerns raised by some oil marketers over their outstanding bridging claims,” it said. 

“The administration of bridging payment is a continuous process as hundreds of trucks load and discharge products daily thereby adding to the claims.” 

The authority said it has made several payments to marketers whose claims have been verified.

“So far, over N58 billion has been disbursed to oil marketers out of which N34 billion went directly to members of the Independent Petroleum Marketers Association of Nigeria (IPMAN),” the regulatory agency said. 

“We wish to stress that the total amount disbursed so far is the highest ever paid within a 6-months span by previous fund administrators, which implies that the reimbursement of marketer’s transportation differentials for petroleum products movement from depots to sales outlets is a priority to the NMDPRA.”

It added that freight rates were recently reviewed upwards to reflect current market realities and stimulate investments in the transportation of petroleum products in the country to ensure uninterrupted distribution.

“It is pertinent to note that some of the pending payments are due to the reluctance of marketers to reconcile their claims, in spite of the Authority’s continuous appeal to come for reconciliation whenever there are discrepancies,” NMDPRA said. 

Furthermore, it said the Nigerian National Petroleum Company (NNPC) had sufficient PMS to last over 47 days, translating to about 2.65 billion litres.  

The agency, therefore, advised Nigerians against panicking as the current situation being experienced in some parts of the country would soon stabilise.

“To address this, some loading depots have been directed to operate on extended hours to enable increased truck-out,” it said. 

“In the interim, the vessel discharge operations have been reviewed to fast-track truck loading and distribution to meet increased demand.

“We wish to state that the Authority remains committed to honour and process legitimate and verified bridging claims to ensure product availability nationwide.”