Business Hilights

Tracking Nigeria's Headline Business News Online

tank-farm Apapa

Confusion as oil marketers distance self from N800b subsidy debt pact with FG

Ad 2
Ad 3

Less than 48 hours the Federal Government made a claim that it has sealed an understanding with oil marketers on the lingering N800bn subsidy debt crisis; the group has denied any agreement with the government.
The Chief Financial Officer of NNPC, Isiaka Abdurazaq, had Saturday told journalists, in Lagos that the Federal Government had reached an agreement with marketers on the amount to be paid, the time the payment would be made and the nature it would take.
The Depots and Petroleum Products Marketers Association of Nigeria (DAPPMA), in a statement signed by the Executive Secretary, Mr. Olufemi Adewole, weekend averred that there was no agreement as offers by government clearly failed to meet the association’s legitimate demands.
DAPPMA noted that “We refer to the press release from the Federal Ministry of Finance on December 6, following the meeting with marketers under the aegis of Major Oil Marketers Association of Nigeria (MOMAN) and DAPPMA, and Independent Petroleum Marketers Association of Nigeria (IPMAN), that marketers had agreed to resume operations. We did not sign the purported document with government as claimed. We still stand by our ultimatum.”
Accordingly, they maintained that their ultimatum still stands adding that marketers could not continue to borrow money to pay staff salaries.
This is as part of the controversial understanding being denied by marketers indicated the readiness of the government to pay oil marketers, particularly Major Oil Marketers Association of Nigeria (MOMAN) and the Depot and Petroleum Products Marketers Association (DAPPMA) N236bn as first tranche of outstanding N348 billion subsidy arrears next Friday.
Explaining more in Abuja, after a meeting attended by marketers, Chief Operating Officer, NNPC, Downstream Henry Ikem-Obih, said the other part of the money would be paid next year.
NNPC 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 paying the first tranche as promised and will be paid through promissory note that would be issued by the Debt Management Office, DMO.
Besides, another wave of confusion has emerged as contrary to earlier calculated debt profile of N800bn owed marketers, the National Assembly only confirmed and approved N348bn as the true arrears.
Efforts to get the reaction of oil marketers’ on this new line of argument failed at press time.

Business Hilights is an online news channel conceptualized and structured to report and track on a daily basis; latest developments in critical business sectors to serve as a one stop news gateway for governments, foreign and indigenous investors.