The Federal Government has responded to claims by the Independent Petroleum Marketers Association of Nigeria that bridging claims of N500 billion could lead to a fuel crisis.
The response was made in a statement signed by the Corporate Communications of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) on Thursday evening.
They added that the amount disbursed so far is the highest-paid within a 6-months span by previous fund administrators.
What NMDPRA is saying
The NMDPRA stated that it has taken note of concerns raised by some oil marketers over outstanding bridging claims.
It added that the administration of bridging claims payment is a continuous process as hundreds of trucks load and discharge products daily thereby adding to claims.
“Since December 2021, the NMDPRA 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 IPMAN”
It added that this is the highest ever amount paid within a 6-months span by previous fund administrators and that the reimbursement of marketer’s transportation differentials for petroleum product movement from depots to sales is a priority to the NMDPRA.
It added that Freight Rates were recently reviewed upwards to reflect current market realities and stimulate investments in Nigeria’s transportation of petroleum products to ensure uninterrupted distribution.
“We wish to state that the Authority remains committed to honour and process legitimate and verified bridging claims to ensure product availability nationwide,” it added.
The NMDPRA stated that pending payment is due to the reluctance of marketers to reconcile their claims.
In case you missed it
- Recall that Nairametrics reported earlier 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
- They warned that if the FG does not intervene there would be a serious fuel crisis in the country as the situation has resulted in only 5% of marketers still remaining in the business.