IPMAN accuses NNPC of racketeering, collusion with private depot owners
By Jeph Ajobaju, Chief Copy Editor
Allegations of fraud have been levelled by the Independent Petroleum Marketers Association of Nigeria (IPMAN) against the Nigeria National Petroleum Company (NNPC) in the importation and distribution of petroleum products.
IPMAN urged President Bola Tinubu to stop exploitation in the distribution of petroleum products, as stated by IPMAN/NNPC PDO Forum Secretary, Folalu Ebenezer, in Apapa, Lagos.
Ebenezer expressed the group’s support for fuel subsidy removal and implored Tinubu to tackle racketeering allegedly perpetrated by NNPC officials.
He said NNPC asked IPMAN to pay ahead of product supply via Authority To Pay (ATP) for loading at designated private depot (PDO).
Ebenezer lamented that months after the payments were made through NNPC portal, marketers are yet to get access to products.
_________________________________________________________________
Related articles:
SERAP sues Tinubu to court for failing to probe missing $2.1b, N3.1tr fuel subsidy funds
‘Tinubu loyalists’ among Nigerians reeling under his 7.5% fuel tax
Oil marketers can’t raise N10b each to restock depots
__________________________________________________________________
Arbitrary increase in charges, underhand dealings
“Some of our members have tickets up to nine months before the fuel subsidy removal but have not been able to load products,” he said, per Daily Post.
Ebenezer disclosed charges increased in January with marketers asked to pay an additional N1,072,000 per ticket.
“Even after the payment, our members are yet to lift the products. There are over 4,500 tickets, including 500 Dynamic tickets yet to drop on the portal.
“NNPCL is now asking IPMAN members, who already have tickets for the products, to pay an additional N13,702,000 on each ticket,” he complained.
Ebenezer accused the national oil firm of diverting products its members paid for to private companies and personal tank farms.
Fuel subsidy removal cuts national consumption by 26m litres per day
Fuel subsidy removal has reduced consumption across the country from 66 million to 40 million litres per day as smugglers have stopped or slashed their trade to neighbouring countries where petrol from Nigeria now sells at market prices.
Benin Republic, one of the havens for smuggled fuel, has raised pump price to CFA 800 per litre, adjusting to the reality of higher prices in Nigeria where market forces have nixed cheap petrol.
Reduction in Nigeria’s consumption was disclosed by Abia Governor Alex Otti after the inauguration of the National Economic Council (NEC) in Abuja, chaired by Vice President Kashim Shettima.
Earlier, Tinubu told the NEC he would accept collaboration in governance to address the economy and improve the welfare of citizens because there cannot be any excuse for failure.
Committee to work out palliatives
Bauchi Governor Bala Mohammed recounted the NEC deliberated on subsidy removal, the challenges and problems, and set up a small committee to review and devise a term of reference that will provide palliatives for workers and other vulnerable groups.
According to him, the committee comprises Governors of Kebbi (Chairman), Anambra representing the South East, Benue (North Central), Kaduna (North West), Bauchi (North East), Cross River (South South), and Oyo (South West).
“As part of the inaugural national economic council meeting today, the major focus was on the removal of petroleum subsidy and implied the removal of subsidy on foreign exchange, which has led to some convergence of some sort,” Otti explained.
Implications of subsidy removal
“The impact of these two actions definitely is increased prices. And as a way to solve the problem and reduce the shock, a presentation was made by the National Automotive Design and Development Council on the great things that are happening in the automotive industry,” Otti said.
“It was [reiterated] that about six states in the country, including Lagos, Ogun, Anambra, Enugu, Akwa Ibom, Kaduna and Kano have benefited from domestic production of vehicles or assembling of vehicles by Nigerian companies operating in Nigeria.
“These companies include INNOSON, Maikano, Dangote Peugeot, Peugeot Automobile of Nigeria, Stallion Hyundai, Honda, Elizade/Toyota, Coscharis and Ford, Kojo Motors, Jet Systems motors.”
Otti said the Tinubu administration should be commended for its efforts to remove subsidy and still help create palliatives, stressing the consumption of fuel in the country has reduced.
“We must salute the courage of the current government to bite the bullet and remove it. Initially, it has reduced the consumption from about 66, 67 million litres a day to just about 40 million. And as time goes on, the consumption will continue to go down.
“We know there are implications, particularly for the poorest of the poor. And that is why this government is seriously looking at palliatives to at least deal with the shock that the poor of our society go through.”
 of fraud in the importation and distribution of petroleum products.){kind=link}