On Wednesday, officials from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and oil marketers met in Abuja to discuss the closure of the fund.
During the meeting, the reconciliation of PEF accounts and plans for its closure within the next month were deliberated. Tunji Oyebanji, a former Chairman of the Major Oil Marketers Association of Nigeria, explained that the purpose of the consultation with NMDPRA was to address various issues related to the implementation of the Petroleum Industry Act, including licensing, quality matters, and the closure of the Petroleum Equalization Fund.
Oyebanji further highlighted the need for reconciliation to settle outstanding debts owed by some parties to PEF and vice versa. The NMDPRA, formed in 2021 through the merger of the Petroleum Products Pricing Regulatory Agency, Petroleum Equalization Fund (Management) Board, and the Midstream and Downstream Divisions of the Department of Petroleum Resources, is overseeing this process.
According to Mike Osatuyi, the National Controller of Operations for the Independent Petroleum Marketers Association of Nigeria (IPMAN), the Fund currently owes IPMAN members approximately N80 billion.
However, Osatuyi clarified that IPMAN does not owe the Fund as they make deposits before lifting products. He emphasized that the owed amount would be paid before the closure, and IPMAN has been invited to reconcile its account with the Fund.
Osatuyi also stated that since the downstream sector has been fully deregulated as stated in the Petroleum Industry Act, there is no longer a need for the Fund. He expressed uncertainty regarding the timing of the payment owed to IPMAN but assured that it would be settled before the accounts are closed.
A source from the Depots and Petroleum Products Marketers Association of Nigeria confirmed that its members were also invited to participate in the reconciliation meeting. The source reported that the closure of the Fund was already known, and the meeting informed them that it had indeed closed. Depot owners and other members were invited to reconcile their accounts, with the understanding that the account would be closed within the next 20 days, starting from the day of the meeting.
