A major milestone occurred as the Nigerian National Petroleum Company Limited (NNPCL) agreed to provide oil marketers with products valued at N15 billion following mediation led by Adeola Ajayi from the Department of State Services (DSS). This positive development follows a string of disagreements that had put a strain on the relationships, among the parties concerned.
Chinedo Ukadike, from the Independent Petroleum Marketers Association of Nigeria (IPMAN) mentioned that the deal signifies a turning point in their discussions that have been ongoing for some time.The agreement will enable marketers to start refilling products again a step, in ensuring a steady supply and balancing the market.
The meeting involved individuals, from the oil industry like a director from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and Mele Kyari as the Group Chief Executive Officer of NNPC Ltd. Ukadike pointed out that the talks focused on matters such, as pricing and Dangote Refinery failure to supply Premium Motor Spirit (PMS ) to IPMAN members.
Ukadike noted, “We were invited by the DSS Director to mediate the ongoing dispute. After fruitful discussions, NNPCL agreed to reduce some charges and facilitate the loading of tickets worth N15 billion.” This reduction is expected to ease the financial pressure on marketers and help restore normalcy to the sector.
Moreover, the NMDPRA has reportedly agreed to issue import licenses to IPMAN, paving the way for a full deregulation of the oil sector. This move is aimed at empowering marketers and promoting competition within the industry.
However, the situation isn't without its complications. NMDPRA spokesperson George Ene-Ita stated he was not privy to the meeting or any license approvals, casting some uncertainty over the implementation of these agreements.
In addition, NMDPRA has pledged to pay N10 billion to oil marketers as part of outstanding funds from the Petroleum Equalisation Fund (PEF). This financial support is vital for ensuring that marketers can operate efficiently and meet consumer demand.
As this story unfolds, it's clear that the road ahead for Nigeria's oil industry is filled with potential. The collaboration between NNPCL and independent marketers is a step toward a more stable and competitive market, ultimately benefiting consumers and the economy at large.