Stephen Ukandu, Umuahia
Petroleum marketers in Abia State, under the aegis of the Independent Petroleum Marketers Association of Nigeria (IPMAN), have threatened to withdraw their services over what they described as “outrageous taxation” by the state government.
The marketers issued a 21-day ultimatum to shut down operations if the government fails to reverse the new tax regime.
Rising from a stakeholders’ meeting at the IPMAN Secretariat, Osisioma, the marketers lamented that the state’s Board of Internal Revenue had increased consolidated taxes by about 600 percent — from ₦95,000 to ₦600,000 — without due consultation.
In a communiqué signed by IPMAN Chairman, Mazi Oliver Okolo, and Secretary, Imo Mascot Obike, the group described the increment as unjustifiable, especially at a time when their members are still struggling to recover from the removal of fuel subsidy.
“It is unfair to expect us to pay such a huge levy from our meagre profit and capital. Many of our members have already leased out their filling stations because they can no longer cope with the high cost of operations,” the communiqué stated.
The marketers accused the Abia State Board of Internal Revenue of unilaterally hiking levies without considering their current economic realities. They also alleged that despite the consolidation of levies, officials from other ministries and agencies still visit filling stations to make additional financial demands.
“They still come to our stations making all kinds of demands just to extort money from us,” IPMAN alleged.
The group further expressed frustration that its efforts to meet Governor Alex Otti over the issue had been blocked by certain government officials.
“Several attempts to interface with the Governor have been rebuffed by agents of government who perhaps fear that our meeting with the people-friendly Governor will make them lose what they plan to get, as the Governor may likely order a reversal or a minimal increment.”
IPMAN also faulted the government’s justification for the increment, citing that petroleum marketers in neighbouring states pay significantly less — ₦100,000 in Ebonyi and ₦110,000 in Enugu — for similar taxes.
“It is worrisome that marketers in Abia will be paying ₦600,000 as consolidated revenue, exclusive of the Abiaplus payment. If implemented, this will force us to sell fuel at higher prices than in other states,” the statement warned.
The group urged the state government to reconsider the hike and instead focus on revamping the moribund NNPC depot at Osisioma, which, they said, would ease distribution challenges and reduce costs for marketers.
Meanwhile, the Chairman of the Abia State Board of Internal Revenue Service (BIRS), Professor Udo Ogbonnaya, defended the increase, insisting that the process followed due procedure and was not outrageous when compared to other states.
According to him, marketers in other states who appear to pay less still bear multiple levies from different agencies, unlike in Abia, where the taxes have been consolidated into a single payment.
“The increase was general, not targeted at petroleum marketers alone,” Prof. Ogbonnaya said. “You can’t expect government to provide services like ASEPA keeping the environment clean without adequate funding. ₦600,000 per annum — about ₦50,000 monthly — is reasonable.”
He dismissed allegations of extortion and advised the marketers to report any official demanding extra payments outside the consolidated levy.
“If anyone comes to them asking for more, they should let us know. The consolidation already covers both state and local government levies,” he added.
