Nigerian Oil Marketers Face Uncertainty Amid NNPC Portal Shutdown

The Nigerian National Petroleum Company Limited (NNPC) has shut down its purchasing portal for petrol, leaving independent oil marketers uncertain about their ability to secure the commodity. The portal, which was used to purchase petrol from the state-owned company, has been closed due to a significant backlog, with over 90 million litres of petrol still awaiting delivery. The backlog is valued at around N79 billion.

NNPC confirmed the shutdown in a statement, citing the need to prevent the company from holding marketers’ capital for an extended period. The spokesperson, Olufemi Soneye, explained that the closure would allow NNPC to reduce the backlog and ensure that marketers’ funds are released promptly.

However, the shutdown has caused frustration among independent oil marketers, who are now struggling to get their hands on petrol. The marketers, who make up the majority of fuel sellers in Nigeria, claim that they have been awaiting delivery of petrol for months, but have yet to receive their supplies.

“The portal shutdown affects us too, we are all buying from NNPC,” said Billy Gillis-Harry, President of the Petroleum Retail Outlets Owners Association of Nigeria. “We have over 2,000 tickets yet to be cleared with NNPC. We hope that the backlog is reduced soon, so we can get back to business.”

Independent marketers are also experiencing difficulties, with some stating that they have paid for petrol but have yet to receive their supplies. In an interview, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, lamented the situation, stating that his association is still waiting for the portal’s opening.

Marketers have also resorted to patronizing private depot owners, who sell petrol at a premium, resulting in a higher cost for consumers. This has led to the product being more expensive in their filling stations than in outlets owned by the NNPC and major marketers.

The crisis has also prompted some marketers to consider purchasing petrol directly from Dangote, a move that could help ensure price parity. Meanwhile, the government has been urged to review the current distribution pattern and give priority to independent marketers.

In an interview in January, the National Vice President of IPMAN, Hammed Fashola, expressed similar concerns, stating that the current situation was unfair to independent marketers. He called on the government to address the issue, citing the financial difficulties faced by marketers.

For now, the uncertainty surrounding the NNPC portal has left many independent oil marketers in a precarious situation. As the situation unfolds, it remains to be seen how the crisis will impact the availability and pricing of petrol in Nigeria.