The Nigerian Midstream and Downstream Petroleum Regulatory Authority on Tuesday said it had disbursed the sum of N103.03bn to oil marketers as bridging cost claims between December 2021 and August this year.
The Authority said this in reaction to the claim made by oil marketers that they are being owed about N50bn in bridging cost.
The development had made the marketers to commence a three-day warning strike on Monday in protest against the continued indebtedness of the Federal Government.
The IPMAN Suleja Depot Branch Chairman, Yahaya Alhassan, said marketers had stopped the supply of products from the depot, as the union had prevented trucks from moving PMS to the northern states.
He said marketers were withdrawing their services until the Federal Government settled their outstanding bridging claims of N50.5bn.
Alhassan said, “The Petroleum Equalisation Fund has not paid our money. We have N50.5bn (to be paid by PEF) and because of that we are withdrawing our services.”
He said the three-day warning strike would go on if the Nigerian Midstream and Downstream Petroleum Regulatory Authority fails to remit the money.
But reacting on Tuesday in a statement, NMDPRA said it had held a meeting with the Northern Independent Petroleum Marketers Forum (NIPMF) on 5th and 6th September 2022 with the participation of the NNPC Ltd.
It said previous engagements and Tuesday’s meeting addressed issues regarding bridging claims and other matters.
The Authority in the statement reiterated that payment of bridging claims is an ongoing process and payments are disbursed as it is received from Marketers.
The statement reads, “In line with the mandate of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to collaborate with industry stakeholders in ensuring uninterrupted supply of Premium Motor Spirit (PMS) throughout the nation, the Authority held a meeting with the Northern Independent Petroleum Marketers Forum (NIPMF) on 5th and 6th September 2022 with the participation of the NNPC Ltd.
“Previous engagements and today’s meeting addressed issues regarding bridging claims and other matters. The Authority would like to reiterate that payment of bridging claims is an ongoing process and payments are disbursed as it is received from Marketers.
“It should be noted that the Authority has disbursed a total of N103,037,183,922.91 Naira between December 2021 to August 2022.
“Following the extensive deliberations between the parties, the Authority further commits to fast-track the settlement of all outstanding claims when received from marketers after due verification and reconciliation. NIPMF has agreed to work with the NMDPRA to ensure free flow of petroleum products nationwide.
“The NMDPRA affirms that it will continue to carry out its mandate as stipulated in the Petroleum Industry Act (PIA) which includes to promote and ensure the continuous and efficient operations of the Midstream & Downstream sector in Nigeria.”