Subsidy: Federal Government Pays N103 Billion In Nine Months To Keep A Uniform Petrol Price

The Federal Government through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) disclosed that the government has paid oil marketers a sum of N103 billion to keep petrol prices uniform across Nigeria. 

According to NMDPRA, these payments were made between December 2021 and August 222. The payment by the federal government to keep prices uniform across Nigeria is called ‘Bridging claims’.

Established in 1975, ‘bridging claim’ is a special intervention put in place by the Nigerian government with the mandate of ensuring that petroleum products are sold at equal prices across the country by paying fuel marketers the incurred transportation cost for every litre of fuel they sell within 100km and 450km from a depot.

Independent Petroleum Marketers Association of Nigeria (IPMAN), Northern Axis which is the most affected had earlier embarked on a three-day warning strike on Monday over more than N70 billion unpaid claims. 

The warning strike had led to petrol scarcity in Abuja and neighbouring northern states. Investors King observed queues at a few oil outlets that sell petrol to motorists in the FCT.

Following the extensive deliberations between the parties, the Federal Government further commits to fast-track the settlement of all outstanding claims when received from marketers after due verification and reconciliation. 

Meanwhile, the public relations officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Yakubu Suleiman has called for the cancellation of Grade A and Grade B payment templates.

“Whenever NNPC have (sic) pushed money to their account, they need to be open in the process of payment — not to be selective,” Suleiman said.

“They need to be open so that every sector catchment area has been cashed. There is no marketer grade A or B. We are all members and marketers.

Suleiman spoke on Arise TV’s Morning Show which was monitored by Investors King.