The Nation Newspaper

Tag: Major Oil Marketers Association of Nigeria (MOMAN)

  • ‘Mergers, acquisitions coming to downstream oil sector’

    Marketers should embrace mergers and acquisitions in the downstream oil sector to consolidate their operations the Chief Executive Officer, Enyo Retail and Supply Limited, Mr. Abayomi Awobokun, has said.

    He said this will boost their capacity to supply fuel effortlessly across the country by 2024,

    Major Oil Marketers Association of Nigeria (MOMAN), Independent Petroleum Marketers Association of Nigeria (IPMAN) and Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), are the key operators of the oil marketing and distribution segment of the oil industry.

    Awobokun said the downstream subsector would experience mergers and acquisitions, which would bring about changes in its operation in the next five years. While explaining past and current developments in the subsector and projecting into its future, he said, mergers and acquisitions are inevitable in view of the conditions of operators in the sector.

    Awobokun stated this in during a press onference  in Lagos to intimate the public about the operation of Enyo Retail and Supply Limited.

    According to him, the development became necessary in order to bring out the essential changes in the downstream operation, which has for years been plagued with problems such as infrastructure, logistics and others.

    Awobokun said: “The next five years would witness new players in the downstream subsector of the Nigerian oil and gas industry. People would see new but bigger players and Enyo Retail and Supply Limited is one of them. The subsector would experience mergers and acquisitions in the next five years.

    Enyo Retail and Supply Limited, he said, has acquired new retail solutions as part of its expansion plans, adding that the firm would not stop at that.

    “We are entering into a contractual agreement with key dealers across the country with a view to fast-tracking rapid expansion of stations. We believe that the idea of having stations at strategic locations will help us drive our commitment to the provision of quality petroleum products in the country,” he added.

    Besides, he said Enyo would be providing technology-driven services to its customers, adding that the firm has concluded plans to set the pace for the innovation in fuel retailing.  He also said the company has a way of interfacing with their customers seeking redress by ensuring that customers lodge their complaints about the products offered to them.

    Enyo, Awobokun said, carries out thorough investigations upon acquiring fuel stations for improved growth.

    The firm, he said, finds out the topography of the area (s) where a vacant retail outlet is located in order to ascertain the strength of the structures erected there, find out whether the owner of the outlet obtained building permits/plans from the state government, whether the area (s) has commercial strength in order to ensure the marketability of the petroleum products, among meeting other requirements needed for the growth of the stations.

    However, MOMAN’s Executive Secretary, Mr. Clement Isong, refused to comment on the issue of mergers and acquisitions in the future among marketers, as he claimed that he was not aware of the issue.

    The Nigerian National Petroleum Corporation (NNPC) is planning to increase its retail fuel market to 30 per cent from 14 per cent by 2020. The goal, NNPC’s Group Managing Director, Dr Maikantu Baru, said would be achieved before the set date.

  • Marketers, DMO meet over N800b debt, ultimatum

    …as IPMAN kicks against shutdown move

     

    The Major Oil Marketers Association of Nigeria (MOMAN), Depot and Petroleum Products Marketers Association (DAPPMA) and the Independent Petroleum Products Importers (IPPIs), Thursday met with the Debt Management Office (DMO) over the N800billion outstanding fuel subsidy debt and the seven day ultimatum to shutdown depots.

    The Nation learnt from a reliable source that the meeting was to avert the threat of the marketers to plunged the country an energy crisis.

    Meanwhile, the Independent Petroleum Marketers Association of Nigeria (IPMAN) Thursday kicked against any attempt by some groups of oil importers to disrupt the relative peace in the downstream oil sector of the country over the subsidy debts.

    In a statement by the IPMAN National Secretary, Alhaji Danladi Pasali said the seven-day ultimatum issued by the Major Oil Marketers Association of Nigeria (MOMAN), Depot and Petroleum Products Marketers Association (DAPPMA) and the Independent Petroleum Products Importers (IPPIs), is nothing but intimidation and an attempt to frustrate the effort by government to ensure Nigerians have a hitch-free yuletide celebration.

    The IPMAN scribe said it’s unfortunate that some groups are more concerns of their personal interest above national interest. According to him, it is good for the marketers to ask for their rights but taking such decision to shut down the petroleum sector at this period of festivity is an act of sabotage.

    He said already the Debt Management Office (DMO) has been addressing their concerns when they issued promissory notes to settle the oil marketers’ debts based on approval by the Federal Executive Council (FEC).

    He said the DMO in a statement recently said FEC approved the establishment of the Promissory Note Programme and Bond Issuance to settle inherited local debts and contractual obligations due to various categories of creditors, including Oil Marketers in July 2017.

    Pasali appeal to the marketers to change their tactics by seeking for other alternatives means to push for their demands, rather than blackmail and sabotage.

    He said IPMAN members are aware of the government’s efforts to settle the remaining debts of the subsidy and are determine to assist the government to ensure hitch-free holidays.

    Pasali said IPMAN, as the oldest association of petroleum marketers and regarded as closest to the end users of petroleum products will continue provide services to the public throughout the holidays.

    He urged Nigerians not to be panic by the threat of the MOMAN and their allies, saying that at the moment NNPC controls majority of the fuel available in the country and is nearly the sole importer of the products.

  • DPR to shut down unlicensed petrol stations in Cross River 

    The Department of Petroleum Resources (DPR) in Cross River State has threatened to shut down filling stations operating in the state without registered operating licenses.

    The State Operations Controller, Bassey Nkanga, gave the warning at a meeting with officials of the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Major Oil Marketers Association of Nigeria (MOMAN) in Calabar.

    Nkanga said that the department reminded oil marketers in the state on October 31, 2017 on the need to renew their operating licences, adding that the deadline for registration had since elapsed on March 31, this year.

    He told the oil marketers that for any filling station that is shut down during the operation, the owner will have to pay a fine of N250, 000 before it will be unsealed for business.

    “Any moment from now, we will embark on an intensified operation to ensure that marketers who have not renewed their licences are not allowed to operate.

    “We have over 600 filling stations in Cross River and it is sad to know that only a little above 100 have their valid registered licences.

    “To prevent any embarrassment, IPMAN members should display their renewed licences in their filling stations’’, he said.

    The Operations Controller frowned at marketers who were in the habit of adjusting their fuel pump to short-change customers.

    He further warned that any filling station indulging in such act will face the wrath of the law.

    On the issue of kerosene explosion in the state, Nkanga said that the Department would partner with IPMAN in the state to reduce adulterated product to the barest minimum.

    “Don’t buy doubtful product from anybody apart from the licensed depot. Anyone who buys adulterated product and there is an explosion in any corner, that person will be held to face the necessary sanctions. DPR is well equipped in checking petrol stations across the state to ensure that the right thing is done, ’’ he said.

    IPMAN Chairman in the state, Mr Lawrence Agim, expressed sadness over incessant kerosene explosions in the state.

    Agim said that many families had been affected by such explosions.

    He lauded the state DPR for always holding regular meetings with them to appraise the situation of petroleum products in the state.

    Read Also: DPR to shut down unlicensed petrol stations in Cross River

  • DPR to shut down unlicensed petrol stations in Cross River

    The Department of Petroleum Resources ( DPR ) in Cross River, on Wednesday in Calabar, threatened to shut down filling stations in the state without registered operating licence.

    Mr Bassey Nkanga, the state DPR Operations Controller, gave this warning at a meeting with the officials of the Independent Petroleum Marketers Association of Nigeria ( IPMAN ) and Major Oil Marketers Association of Nigeria ( MOMAN ).

    Nkanga said that the department reminded oil marketers in the state on Oct. 31, 2017 on the need to renew their operating licences, adding that the dateline for registration had since elapsed on March 31.

    According to him, DPR will soon embark on ‘operation display your renewed licence in your filing station or be shut down’.

    He told the oil marketers that any filling station shut down during the operation, the owner would have to pay a fine of N250,000 before it could be reopened for business.

    “Any moment from now, we will embark on an intensified operation to ensure that marketers, who have not renewed their licences are not allowed to operate.

    “We have more than 600 filling stations in Cross River and it is sad to know that only a little above 100 have their valid registered licences.

    “To prevent any embarrassment, IPMAN members should display their renewed licences in their filling stations henceforth,’’ he said.

    The Operations Controller frowned at marketers, who were in the habit of adjusting their fuel pump to short-change customers.

    He further warned that any filling station under-dispensing petroleum product would face the wrath of the law.

    On the issue of kerosene explosion in the state, Nkanga said that the organisation would partner with IPMAN in the state to drastically reduce the influx of adulterated product.

    “Don’t buy doubtful product from anybody apart from the licensed depot; anyone, who buys adulterated product and there is an explosion in any corner, that person will face the necessary sanctions.

    “DRP is well equipped in checking petrol stations across the state to ensure that the right thing is done,’’ he said.

    Mr Lawrence Agim, the IPMAN Chairman in Cross River, expressed sadness on the incessant kerosene explosions in the state.

    Agim said that many families had been affected by such explosions.

    He lauded the state DPR for always holding regular meetings with them in order to appraise the situation of petroleum product in the state.

    NAN

  • Oil workers suspend strike as FG promises payment N650b 

    Oil workers suspend strike as FG promises payment N650b 

    Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) and Major Oil Marketers Association of Nigeria (MOMAN) Monday suspended their 14 days strike notice to the Federal Government owing to the government’s assurance to pay the outstanding N650billion debts to the marketers.

    DAPPMAN Chairman​​​​​​​​ and Executive Secretary ​​​​​, Prince Dapo Abiodun, and Olufemi Adewole respectively made this disclosure in a statement.

    The statement reads in parts: “Consequently, DAPPMAN/MOMAN hereby suspend the issued 14 days ultimatum and use this medium to plead with all our staff under the various umbrella Unions: NARTO, PENGASSAN, NUPENG/PTD to please bear with us whilst this approval for appropriation by the NASS is being deliberated on and processed, which we believe will not exceed two (2) weeks in view of the adverse implications of any delays.

    All marketers are to ensure there is no disruption in the supply and distribution of PMS nationwide.

    “Following the 14 day ultimatum to commence staff disengagement given to the Federal Government (FGN) by Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) in the light of over N650Billion (Six Hundred and Fifty Billion Naira) owed by FGN to petroleum marketers, a series of constructive engagements and meetings were held with NNPC, Ministry of Labour, the Presidency and DAPPMAN/MOMAN.

    “Marketers have been reassured about the FGN’s commitment to make payment as evidenced by the request for approval for appropriation of same to the National Assembly.

    “It is our hope that this approval will be given promptly and these long overdue payments made subsequently.”

    Read Also: Oil workers injured as fire engulfs Consolidated Oil in Bayelsa

  • Oil marketers urge FG to pay outstanding fuel subsidy claims

    Oil marketers urge FG to pay outstanding fuel subsidy claims

    The Major Oil Marketers Association of Nigeria (MOMAN) has appealed to the Federal Government to pay the outstanding fuel subsidy claims to its members to pay back their bank loans.

    The Executive Secretary of the association, Mr. Obafemi Olawore, made the plea in an interview with the News Agency of Nigeria (NAN) on Wednesday in Lagos.

    NAN reports that some oil marketers had on June 18 appealed to the Federal Government to pay their outstanding debts of two  billion dollars (N720 billion) owed on importation of petrol products and the accrued interests on bank loans.

    Olawore said that the immediate payment of the accumulated subsidy claims would salvage the banks from total collapse over the huge debts owed them by marketers.

    According to him, the delay in repayment of the loan debts owed the banks by marketers had led to retrenchment in the banking and the oil and gas sectors.

    “We (marketers) are afraid that if the money is not paid on time, this may attract the Asset Management Corporation of Nigeria (AMCON) to take over our businesses.

    “The debts had imparted grossly on marketers, while only very few marketers are presently importing insignificant quantity of petroleum products into the country,” he said.

    Olawore said that the plea was to avert the scarcity of petroleum products in the country.

    The executive secretary said that inability of the marketers to import fuel had impacted negatively on loading activities at the Apapa and Dockyard private depots.

    Olawore said that the NNPC had become the sole importer of petroleum products, while marketers were queuing to get the products on credit.

    He said that the Federal Government paid over N300 million daily as fuel subsidy.

    Olawore said that anytime there was problem in the banking sector, it was always traced to the oil sector, because of the unpaid loans collected by marketers borrowed.

    “Once we (marketers) are unable to pay, the banks will have problems,” he said.

    Olawore said that some banks might be having problem with their correspondence banks abroad due to the unpaid loans.

    “This can have negative effects on the financial sector’s stability, which is not good for the economy.

    “A situation where the banks are being owed N800 billion constitute major threat to the continuous existence of the sector,” he said.

  • Marketers assure of decrease in pump price soon

    Marketers assure of decrease in pump price soon

    The Major Oil Marketers Association of Nigeria (MOMAN) on Tuesday assured Nigerians that pump price of Premium Motor Spirit (PMS), otherwise called petrol, will drop very soon.

    The Executive Secretary of the association, Mr Obafemi Olawore stated this while addressing newsmen in Lagos.

    According to Olawore, despite non availability of foreign exchange at official exchange rate of N197 to $1, major marketers are relying on their upstream divisions to get dollars to finance their imports.

    “I’m assuring Nigerians that pump price of petrol will soon drop as against claims that it will rise above the present band.

    “Price won’t go up as long as the Nigerian National Petroleum Corporation  (NNPC) is bringing in products.

    “Although, we are expected to source for dollars at the parallel market but the good news is that we are getting dollars from our upstream divisions.

    “Shell supports Conoil, Agip to support Oando, ExxonMobil supports Mobil Oil Nigeria, Total supports Total Nigeria, MRS and Forte get support from NNPC,” he said.

    The executive secretary, however, said that further that full deregulation was the answer to the challenges fuel scarcity in Nigeria.
    “The solution to fuel scarcity is full deregulation.

    “If there is no policy reversal, marketers will bring in products.

    “The situation will encourage us to bring in more investment. We have invested in meters presently to ensure adequate metering.

    “Others are doing their calculations in how to bring in investment in refineries and once we begin to refine domestically, it means we have attained full deregulation,” he said.

    He denied the allegations that marketers were making abnormal profit because they were selling old stock.

    Olawoore said that announcement of new price would have been made on May 7, but it was discovered that marketers had plenty stock and would have made abnormal profit.

    “So, the government waited for the majority of our members to sell most of their old stocks before announcing new pump price on May 11.

    “We have not been making much profit like that, what we have been doing is to continue in business since our fixed costs are always being recovered,” he said.