Unpaid N256bn subsidy: Oil marketers threaten to stop importation

Unpaid N256bn subsidy: Oil marketers threaten to stop importation

The Major Oil Marketers Association of Nigeria (MOMAN) on Friday threatened to stop the importation of petroleum products over yet-to-be-paid N256 billion subsidy claim by the Federal Government.

The Executive Secretary of MOMAN, Mr Obafemi
Olawore, made the disclosure at a news conference
in Lagos.
Olawore said that the last time the government paid
marketers N100 billion subsidy claim was in
February and it was paid in Sovereign Debt Note
(SDN).
He said that the post-dated note would mature at the
end of April.
The secretary-general said that before the N100
billion SDN was issued, the government was
indebted to the tune of N315.8 billion. But if you
deduct the N100 billion from the N315.8 billion, you
will have 215.8 billion.
“Besides, the Petroleum Product Pricing Regulatory
Agency (PPPRA) had earlier approved Batches T and
U for last quarter of 2014 for payment which
amounted to N30.5billion.
“In 2015, we also have Batches A and B for the
products imported by MOMAN which has been
approved by PPPRA but had not been paid. This also
amounted to N9.7 billion. So, the money put together
is N256 billion,” he said.
The secretary-general said that the unpaid subsidy
had really affected the marketers from expanding
their businesses.
Olawore said that the association’s fear was that the
2015 budget as passed by the House of
Representatives did not capture subsidy payment.
“If government is saying we should stop importation
of petroleum or no more subsidies, they should
please pay for what the association members had
supplied.
“Right now, it is getting to a halt because we are
bleeding; our suppliers are on us to pay for products
supplied.
“As at April 22, what we have in our depots at Apapa
will only last for three and half days, which shows
that our members are finding it hard to bring in
products.
“Our banks here are not even helping the situation
because it has not been easy to access loan from
them,” he said.
He urged the Federal Government to pay the claim
so that marketers could continue with the
importation and avoid scarcity of the products.
He added that NNPC could not import the products
alone because presently MOMAN imports about 40
per cent of the nation’s consumption.