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The Federal Government, yesterday, said it would pay oil
marketers N236 billion next Friday, being first tranche of the
outstanding N348 billion subsidy claims owed members of the Major
Oil Marketers Association of Nigeria, MOMAN, and the Depot and
Petroleum Products Marketers Association, DAPPMA. Petrol Speaking
after a meeting with officials of petroleum product marketers in
Abuja, Chief Operating Officer, Downstream of the NNPC, Mr. Henry
Ikem-Obih, disclosed that the remaining portion of the claims would
be paid in 2019, after a meeting between the oil marketers and the
Federal Ministry of Finance, that would be scheduled sometimes in
2019.
The meeting was convened after the marketers threatened
last week to go on strike if within seven days, efforts were not
made to pay the debts. Ikem-Obih said: “We agreed that after the
first tranche is paid, the marketers would form a committee to work
on details of how the next tranche will be paid in 2019 and the
last tranche in 2020. Government is fully committed to pay the
first tranche as promised and will be paid through promissory note
that would be issued by the Debt Management Office, DMO.” According
to him, the Federal Government had insisted on making the payments
through promissory notes, which was equivalent to cash and could be
liquidated almost immediately. He said the decision to pay through
promissory notes was based on the need to manage cash injection
into the economy, noting that injecting cash of that magnitude into
the economy might affect the country negatively.
The NNPC downstream boss said the mode of settlement had been
agreed between the Federal Government and the oil marketers since
2017, adding that the decision was not new. Dickson warns against
cheating Bayelsa in oil, gas deals He noted that the Federal
Government had decided to pay the money to the oil marketers in
full and had directed that there would be no deductions from the
marketers’ account to settle debts owed government. Ikem-Obih said,
“Some oil marketing companies, DAPPMA and MOMAN members are
indebted to Federal Government agencies, like the Federal Inland
Revenue Service, FIRS, but the government had directed that the
debts should not be deducted from the payments. This is because if
we do, most of the marketers would be left without a dime.”
Explaining the disparity between the N800 billion claimed by the
oil marketers and the N348 billion approved by the National
Assembly, the downstream chief executive said the debt position of
all the marketers to the government where considered and agreed
upon as at June 30, 2018 and presented to the National Assembly for
approval, which after consideration of the debts, approved the sum
of N348 billion. He assured Nigerians that the NNPC was fully ready
to ensure stable supply of petroleum products during the Yuletide
period and beyond, stating that presently, the corporation has over
2.8 billion litres of Premium Motor Spirit, PMS, also known as
petrol, which would last the country for 55 days while 90,000
metric tonnes of diesel, imported by the Petroleum Products
Marketing Company, PPMC, and NNPC Retail, would arrive the country
in the next couple of days.
Ikem-Obih declared that all MOMAN, DAPPMA and IPMAN had assured
the Federal Government that their facilities would be available
throughout the festive period, while all the NNPC depots across the
country and its 618 retail outlets would also be dispensing the
products. He also disclosed that in addition to the imported fuel
stock, the countries refineries would also be contributing to fuel
supply, adding that Warri Refinery had returned to production last
Thursday, while Port Harcourt refineries are about to resume
production. N800bn subsidy debt: DMO, Finance ministry invite
aggrieved marketers for dialogue Also speaking, Chief Executive
Officer of A.A. Rano Limited, Alhaji Aliyu Sa’id dissociated the
company from the planned shutdown by DAPPMA and MOMAN, stating that
the timing was wrong. He said oil marketers should not be seen to
be sabotaging the efforts of government in ensuring stable fuel
supply during the Yuletide season and beyond.
Speaking in the same vein, Managing Director/Chief Executive
Officer of A.Y.M. Shafa, Mr. Ahmad Abdullahi, declared that at this
time that the country is going through series of challenges,
security and financial, any attempt to worsen the plight of
Nigerians would be seen as an attempt to put the country in chaos.
He urged other oil marketers to support the Federal Government and
trust the decisions of the government as it concerns settlement of
the outstanding claims. On his part, Group Managing Director of
Obat Oil and Gas, Prince Akinfemiwa Akinruntun, said the company is
ready to support the government by loading the products on a 24
hours basis, noting that the NNPC had been supportive of oil
marketers over the years. He noted that national interest
supersedes his personal interest, hence, he would urge Nigerians to
avoid panic buying, as efforts would be geared towards ensuring
stability in petroleum products supply
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