Allexer Namundjembo
The Fuel and Franchise Association (FAFA) has accused Nasan Energies of failing to deliver fuel paid for upfront and for not honouring agreements made with divested retailers.
In a letter dated 4 June 2026, FAFA chairperson Michael Ludeke said Nasan launched a ‘Bring the Cash Incentive’ on 2 June, offering a 50-cent per litre rebate for full truck orders of 40,000 litres paid 24 hours before loading.
The written offer stated that payments cleared before 12h00 would be loaded the next working day.
At a meeting the same day, FAFA says Nasan directors agreed the incentive would run for June, July and August 2026 and not for one month only.
Nasan also promised that retailers who did not use the incentive would keep the same seven-day credit terms they had with Vivo Energy.
“That the ‘Bring the Cash Incentive’ would be available for a period of three months, comprising June, July and August 2026, and not for one month only,” the letter states.
FAFA claims Nasan promised to confirm both undertakings in writing that day but has not done so.
Despite this, several retailers paid upfront “in good faith and in reliance on the undertakings given” by Nasan.
“Notwithstanding the absence of the promised written confirmation, a material number of the divested retailers paid upfront in respect of orders of motor fuel,” Ludeke wrote.
FAFA says many of those orders remain undelivered.
Where deliveries happened, they were “well outside the 24-hour and next-working-day windows expressly committed to by Nasan.”
Some retailers allegedly had to take bank loans to meet the upfront payment, but lenders now want written confirmation of the three-month incentive period.
“The practical consequence is that, having committed substantial working capital upfront to Nasan in good faith, the affected retailers are left without fuel, without the promised written confirmation, and without any assurance that the situation will be remedied. Several divested retail fuel sites are accordingly dry,” the letter reads.
FAFA demanded that Nasan issue the written confirmation by 17h00 on 4 June 2026 and deliver all paid-for fuel or refund the money.
If not, FAFA said it would refer the matter to arbitration, seek urgent court relief, and approach the Namibian Competition Commission (NaCC) and the minister of industries, mines and energy, Modestus Amutse.
The retailers were divested to Nasan on 27 May 2026 under merger conditions imposed by the NaCC.
The letter was also copied to Amutse; Andreas Penda Ithindi, chairperson of the Namibian Competition Commission; and Vitalis Ndalikokule, chief executive officer of the Namibian Competition Commission.
