Petroleum products marketers in Abia State have threatened to withdraw their services over what they describe as “outrageous taxation” imposed by agents of the state government.
The threat was issued through a communiqué released after a stakeholders’ meeting of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abia State chapter, held at its Osisioma Secretariat.
The communiqué, signed by IPMAN Chairman Mazi Oliver Okolo and Secretary Imo Mascot Obike, stated that the consolidated revenue levy for petroleum marketers had been increased by 600%.
IPMAN appealed to Governor Alex Otti to intervene, saying many members had already leased out their filling stations due to dwindling business fortunes following the removal of fuel subsidy.
The association accused the Abia State Board of Internal Revenue Service (ABIRS) of imposing the levies unilaterally, without consultation or consideration for the financial struggles faced by marketers.
According to IPMAN, despite the consolidation of taxes, some ministries and agencies still visit filling stations demanding various payments.
“They still visit our filling stations and make all kinds of demands just to extort money from us,” the communiqué alleged.
It continued: “The Government of Abia State, through the State Board of Internal Revenue, has arbitrarily increased the consolidated revenue hitherto charged petroleum marketers from N95,000 to N600,000 — an over 600% increase.
“This increment came at a time when petroleum marketers are struggling to stay in business after the full implementation of subsidy removal, which has pushed over 60% of our members out of business due to the high cost of procuring products and running expenses.”
IPMAN further expressed frustration over their inability to have audience with the governor.
“Attempts to interface with the governor have been rebuffed by some individuals who fear that our meeting with the people-friendly Governor will make them lose what they intend to gain, as he may direct them to revert to the status quo or limit the increase to not more than 50%.”
The association argued that the new Abia levy is far higher than what marketers pay in neighbouring states.
“In Ebonyi, marketers pay about ₦100,000, while in Enugu they pay an average of N110,000. It is worrisome that in Abia we are to pay a whopping N600,000, excluding Abiapluc payment.”
IPMAN warned that the new tax regime would worsen pump prices for consumers in the state and potentially force many operators out of business.
“Given this precarious situation and the groaning of our members, we have no option but to issue a 21-day notice to the Abia State Government to reverse this outrageous increment, or we may be forced to shut down operations.”
The association also urged the state to push for the rehabilitation of the moribund NNPC depot at Osisioma, which has been inactive for over a decade, saying its revival would ease the burden on marketers and reduce pump prices.
The Chairman of Abia State Board of Internal Revenue Service, Prof. Udo Ogbonnaya, said the tax review followed due process, arguing that is not excessive, compared with other states.
He argued that while marketers in other states appear to pay less, they also pay multiple separate levies which Abia has consolidated into a single annual payment.
Prof. Ogbonnaya insisted that the N600,000 annual levy “is not exploitative,” and cautioned the marketers against attempting to “arm-twist” the government.
“The increase was not for petroleum marketers alone; it was a general review. They cannot ask us to reduce it selectively. They are only trying to amputate the government, which is not acceptable.”
He added that government services, including improved sanitation by ASEPA, must be funded.
“Someone selling petroleum products and making significant profits is asked to pay N50,000 per month — how much is monthly income tax? You want government to work, yet you don’t want to support it.”
The ABIRS chairman denied allegations of extortion and urged marketers to report any officials demanding additional fees.
“The consolidated levy covers both state and local government charges. So they should report anyone seeking extra payments.”
- Media Report