The Independent Petroleum Marketers Association of Nigeria (IPMAN) has renewed calls on the Nigerian National Petroleum Company Limited (NNPC Ltd.) to settle long-standing petroleum equalisation funds and outstanding loading tickets owed to its members.
IPMAN’s Publicity Secretary, Chinedu Ukadike, in a media briefing on Thursday, stressed that despite the remarkable revenue growth recorded by the NNPC in recent months, the company still owes marketers about ₦25 billion in unpaid equalisation claims.
Ukadike commended the new Group Chief Executive Officer of NNPC Ltd., Bayo Ojulari, for generating over ₦20 trillion in just four months.
However, he urged the management to prioritise clearing marketers’ debts and supplying petroleum products tied to paid loading tickets that remain stuck in NNPC’s portal system.
The Petroleum Equalisation Fund (PEF) was a Federal Government scheme designed to reimburse petroleum marketers for costs incurred in ensuring that fuel prices remained uniform across Nigeria.
It covered bridging costs for transporting products from depots to remote parts of the country.
The scheme was administered by the defunct Petroleum Equalisation Fund Management Board (PEFMB) but was later merged into the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) after the passage of the Petroleum Industry Act (PIA) in 2021.
With the removal of fuel subsidies by President Bola Ahmed Tinubu in 2023, the PEF was dissolved.
Meetings were reportedly held with marketers to reconcile outstanding accounts, but according to IPMAN, billions remain unpaid.
Ukadike emphasised that the debt burden is slowing down marketers’ operations, especially in a liberalised market where competition and price flexibility are key.
“Independent marketers have been calling on the NNPC to reimburse us for our money or give us products from some of our tickets tied down in their system.
Though they have started addressing it, the payments are not in full force,” Ukadike stated.
He disclosed that the initial outstanding equalisation debt stood at over ₦40 billion, but recent reconciliations have reduced it to about ₦25 billion.
He further advised the NNPC to compile all bridging claims and settle them at once.
“If they can clear it in one tranche, it will make fuel distribution smoother and strengthen energy security,” he said.
While fuel scarcity has not been reported in recent months, Ukadike noted that independent marketers face a new challenge—price wars among market players.
“The industry has taken a good shape, and scarcity has disappeared.
However, the challenge now is the price war, which is the essence of liberalisation.
Demand and supply now dictate the market price. Marketers have choices, and consumers can buy products freely,” he explained.
He added that clearing pending debts and ticket issues will help ensure smoother participation for independent marketers and prevent monopolistic tendencies in the sector.
A senior NNPC official, who requested anonymity, confirmed that the concerns raised by IPMAN had been noted.
He assured that management is reviewing the claims and would provide an official response soon.
The source explained that the company is balancing its new profit-driven mandate as a commercial entity with the need to clear inherited obligations from the previous subsidy era.
Analysts say resolving the ₦25bn equalisation debt will restore trust between the government-owned oil company and independent marketers, who control a significant portion of Nigeria’s retail fuel outlets.
Failure to clear the debts could weaken the ability of smaller marketers to compete, potentially leading to reduced competition and higher pump prices in some areas.
Energy policy consultant, Dr. Ugochukwu Uche, warned that leaving the equalisation claims unsettled may trigger litigation and disruptions in product distribution.
“Marketers are the backbone of fuel retailing in Nigeria. If their grievances are not addressed, we may witness pockets of supply distortions,” he said.
He added that in a deregulated environment, clearing old debts is crucial for attracting investment into downstream infrastructure such as depots, pipelines, and modular refineries.
With deregulation now in full swing and the PIA framework guiding operations, stakeholders believe the Tinubu administration must resolve legacy debts while creating a competitive environment for petroleum marketing.
Ukadike reiterated IPMAN’s optimism that Ojulari’s leadership at NNPC will prioritise debt repayment, noting that confidence is gradually returning to the sector.
“As we progress in this liberalised market, the independent marketers must be carried along. Clearing these debts will boost confidence, enhance distribution, and ultimately guarantee energy security for Nigerians,” he concluded.