The non-payment of nearly N200 billion in bridging claims has prompted the Independent Petroleum Marketers Association of Nigeria (IPMAN) to declare that it will make actions that will severely impair the petrol supply.

The emergence of this development coincides with a gas shortage, driving up transportation expenses.

In order to guarantee a consistent pump price throughout the nation, bridging claims covers the expense of moving fuel from depots to authorised zones.

The Nigerian Midstream and Downstream Petroleum Regulatory Commission (NMDPRA) is the entity that is responsible for the debt, according to a statement issued by Aba Depot’s unit chairman and spokesperson, Oliver Okolo, following a news conference on Tuesday.

Okolo said NMDPRA failed to pay the N200 billion debt, accruing since September 2022 — despite a directive for payment from Heineken Lokpobiri, the minister of petroleum resources (oil).

“We are poised to take far-reaching decisions that may cripple the supply and sales of petroleum products across Nigeria, if our demands are not met within the shortest period,” he said.

He said the NMDPRA’s delay in offsetting the debt has led to the “deaths of many of our members and the unfortunate collapse of their businesses”.

“As businessmen and women, our members acquired bank loans to keep their fuel retail outlets running daily across the nooks and crannies of Nigeria, to serve the teeming population of Nigerians,” he said.

“However, it is demoralising to know that many of our members have gone bankrupt and have become financially insolvent as a result of their inability to meet their financial obligations to their banks, arising wholly from their inability to get their monies from the NMDPRA.

“Consequently, also, the banks have taken over the business premises of many of our members.

“As indigenous organisations, and Depot Chairmen, we are unhappy that rather than receive support from the government to boost our businesses, we are being discouraged, by the head of NMDPRA.

“It is noteworthy to recall and state here that at a stakeholders meeting held on the 20th of February, 2024 with Mr. Heineken Lokpobiri, the Honourable Minister of Petroleum Resources (Oil), and the NSA Nuhu Ribadu, Engr. Farouk Ahmed, the Chief Authority of NMDPRA, was mandated by Mr. Heinehken Lokpobiri to clear the entire debt in 40 days.”

However, after the 40-day deadline, Okolo said a paltry sum of N13 billion has been paid.

The NMDPRA and IPMAN have a history of disputes over bridging claims, with the latter often threatening to withdraw services.

The Nigeria Electricity Regulatory Commission (NERC) has been requested by the house of representatives to halt the introduction of the new price.

Following the passage of a motion of urgent public significance on Tuesday, the lower legislative chamber passed the resolution in plenary session.

Nkemkanma Kama, a Labour Party (LP) politician from Enonyi state, sponsored the resolution.

On April 3, NERC approved an increase in electricity tariff for customers under the Band A classification.

The commission said customers under the category, who receive 20 hours of electricity supply daily, would begin to pay N225 per kilowatt (kW), starting from April 3, up from N66.

More to come…

Minister of power, Adebayo Adelabu, says the country will be thrown into darkness if the federal government does not hike electricity tariff.

Recall that the Nigeria Electricity Regulatory Commission (NERC), on April 3, approved an increase in electricity tariff for customers under the Band A classification.

The commission said customers under the classification, who receive 20 hours of electricity supply daily, will now pay N225 per kilowatt (kW), starting from April 3, up from N66.

Appearing before the senate committee on power on Monday, Adelabu said although citizens are bearing the brunt of the increase, it would “catapult us to the next level”.

“The entire sector will be grounded if we don’t increase the tariff,” the minister said.

“With what we have now in the next three months, the entire country will be in darkness if we don’t increase tariff.

“The increment will catapult us to the next level. We are also Nigerians, we are also feeling the impact.”

Adelabu said if distribution companies (DisCos) do not provide 20 hours of power for seven consecutive days, the customer should be billed on the old tariff.

“We made it a conditional tariff, we made it a service reflective tariff, that the only condition that can make a discriminate company charge the new tariff of N225 per kilowatt hour is they must ensure they supply a minimum of 20 hours to that consumer everyday,” he said.

“If they cannot sustain this within a period of seven days, such consumers must be granted the old tax.

“Any consumer that can get supply for 20 hours, they can pay N225 per kilo as against the N66 in the old regime. And we also put in some monetary and tracking framework to ensure that these posts are compelled to comply with this tariff order.

“And this was displayed in the first day or the first week of this new regime, when it was discovered that a particular DisCo was not supplying for up to 20 hours and was charging the customers. A penalty of N200 million was slammed on this DisCo.”

The minister added that the fine has served as a deterrent to DisCos.