We’ve Spent N52.7 Billion on Transporters’ Bridging Funds to Ensure Petrol Availability– FG

In a bid to sustain the availability of petrol in the country, the federal government has spent N52.7 billion on Premium Motor Spirit, PMS bridging funds to petroleum products transporters.

In an engagement meeting with stakeholders in Lagos, the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Engr Farouk Ahmed stated that the N52.7 billion was disbursed between December 2021 and February 2022.

He explained that about N12.7 billion was paid to the transporters in December, 2021, another N10 billion was disbursed this week, and another N30 billion was paid to them for respite due to the economic challenges faced. 

Ahmed maintained that the Federal Government will keep paying the cost of bridging petrol in order to secure its availability across the country.

He said, “In total, we have paid N52.7 billion for bridging fund. This payment is ongoing and as they transport, we pay.

“When we came in, we wanted to ensure that we do our due diligence before payment was done. What we paid in December has surpassed the whole of the payment made in 2021.

Reiterating commitment to clear inherited backlog, the NMDPRA boss said, “we had to do our due diligence to ensure that those who are owing, we must reconcile before we make the payment. The reconciliation is still ongoing and the more we collect, the more we pay so that we can catch up with the backlog we inherited.”

He added that about 38 regulations on authority have been put in place by the Presidential steering committee chaired by the Minister of State for Petroleum Resources while eight truck regulations are undergoing review. 

Speaking after the stakeholders meeting, the Group Executive Director, Downstream, Nigerian National Petroleum Company, NNPC Limited, Mr Adeyemi Adetunji, stated that the meeting with the authority’s chief executive and all the stakeholders in the downstream oil and gas industry was a fruitful one.

“NNPC Ltd. will continue to play its role as an energy supplier of last resort for the country. We will continue to ensure that all petroleum products are available. We will put in place and supply the market with adequate petroleum products even as we are now NNPC Ltd., a fully commercial company governed by both the PIA and CAMA. 

“We will continue to collaborate with all to ensure that Nigerians have adequate and quality flow of petroleum products at all times,” Adetunji pledged.