Bridging Cost Payment Hits N74bn As NMDPRA Releases Fresh N10bn To Oil Marketers

The Nigerian Midstream and Downstream Petroleum Regulatory Authority has released fresh N10bn as bridging cost to oil marketers.

It said this in a statement issued on Wednesday night.

The Authority said the additional N10bn which was released brings the total amount so far paid to oil marketers as bridging cost to N74bn.

A breakdown of payment made to Marketers is as follows: Major Marketers (MOMAN) received N9,958,777,487.24, IPMAN members were paid N42,301,923,616.96, NNPC Retails N6,661,459,118.61 while DAPPMAN members were paid N12,303,195,651.57.

The statement reads, “The attention of NMDRA has been drawn to allegations made by Independent Petroleum Marketers Association Nigeria (IPMAN Suleja Branch) on product scarcity as a result of non-payment of bridging claims.

” The Authority Chief Executive of the NMDPRA at a meeting held on 17 May 2022 with IPMAN, bridging payment was discussed extensively, and the processes explained and agreed upon by IPMAN.

“He assured IPMAN of NMDPRA’s willingness to continue making payment of outstanding claims to promote seamless operations.

“Pursuant to the meeting, the NMDPRA went ahead to make additional payment of N10bn in June and sought for an upward review of the freight rate which was approved by President Muhammadu Buhari and is currently being implemented.

“The Authority wishes to reiterate that bridging payment is an ongoing process which is carried out after due verification exercise by the Authority and Marketers.

“So far, the Authority paid N71,233,712,991 bridging claims and another N2,736,179,950.84 _ freight differentials to the Marketers as at 6” June, 2022.

It is disheartening that despite these payments and increase of N10 bridging cost, which was approved by President Muhammadu Buhari two weeks ago, IPMAN could turn around to accuse the NMDPRA of insensitivity.”

The NMDPRA said in the statement that it remains committed to ensuring a safe, efficient, and effective conduct of Midstream & Downstream petroleum operations.