The Petroleum Retailers Outlet Owners Association of Nigeria (PETROAN) has rejected calls for industrial action over N100 billion bridging claims owed depot owners by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The association of petrol retailers urged its members to continue operations despite the ongoing dispute with NMDPRA, saying a strike could have dire consequences for the industry and Nigerians.
Speaking after an emergency national executive meeting in Abuja on Tuesday, PETROAN’s National Public Relations Officer (PRO), Joseph Obele, assured members that the association is committed to dialogue and negotiation rather than an industry-wide shutdown.
He stressed that a shutdown could lead to fuel scarcity, economic disruption, and hardship for Nigerians, making it a counterproductive move.
“While acknowledging the frustration and concerns of members regarding the unpaid bridging claims, PETROAN firmly believes that a shutdown will have devastating consequences.
“These consequences include fuel scarcity, economic disruption, and hardship for the Nigerian people,” Obele said.
He reaffirmed the association’s commitment to resolving the issue through constructive engagement with NMDPRA, calling on all stakeholders to approach the matter in good faith to reach a mutually beneficial resolution.
“A lot will also be achieved if we avoid costly and damaging shutdowns and ensure the continued stability and growth of the downstream petroleum sector.”
PETROAN commends oil sector reforms
Obele also commended President Bola Tinubu’s reform efforts in the petroleum sector, highlighting the importance of transparency, accountability, and economic stability.
He urged regulatory authorities to expedite the payment of outstanding claims to ease the financial burden on PETROAN members and ensure smooth operations in the downstream petroleum sector.
“PETROAN also commends President Bola Tinubu’s efforts to reform the petroleum sector, promoting transparency, accountability, and economic growth.
“The association encourages all stakeholders to support and encourage these reforms, rather than sabotaging them,” he said.
Backstory
Nairametrics reported that earlier this week, the Independent Petroleum Marketers Association of Nigeria (IPMAN) threatened strike actions over the non-payment of over N100 billion in bridging claims owed to its members by NMDPRA.
In a communique released on Monday by the Depot Chairmen of IPMAN, the marketers expressed frustration over the prolonged delay in payment, despite repeated assurances from the NMDPRA.
- The communique noted that many marketers have lost their businesses to commercial banks due to loan defaults linked to unpaid bridging claims.
- IPMAN also accused the NMDPRA of imposing “abnormal levies” on marketers, including a controversial 5% commission on petrol station sales.
- The NMDPRA is yet to respond to the reports.
IPMAN is a larger association that includes members of PETROAN and some other trade unions.