In the last five months, the Federal Government has paid petroleum marketers more than N58 billion in bridging costs.
Members of the Independent Petroleum Marketers Association of Nigeria (IPMAN) received N34 billion of the total, according to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which made the announcement in Abuja yesterday.
The revelation was made a day after IPMAN threatened to stop distributing petroleum products nationwide due to N500 billion in outstanding bills that they owed as bridging costs.
The administration of bridging payments is an ongoing procedure because hundreds of trucks load and unload goods every day, which increases the number of claims, according to NMDPRA.
It went on to say: “The NMDPRA has paid marketers whose claims have been validated on multiple occasions since December 2021. Oil marketers have received more than N58 billion in payouts thus far.
We want to emphasize that the total amount disbursed thus far is the largest sum ever paid in a 6-month period by prior fund administrators, indicating that the NMDPRA prioritizes paying marketers’ transportation differentials for the movement of petroleum products from depots to sales outlets.
Additionally, freight rates were recently raised to reflect the realities of the market and encourage investments in the nation’s petroleum product transportation network to guarantee continuous distribution.
Although the Authority has repeatedly urged marketers to come for reconciliation whenever there are disparities, it is important to remember that some of the outstanding payments are the result of their unwillingness to do so, the statement said.
