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Nigerian govt gives breakdown of N74bn subsidy payment to petroleum marketers in seven months

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Increase in petrol price inevitable –Rewane

Amid scarcity, the Federal government has revealed that petrol marketers in the country in seven months received N74 billion subsidy payment.

Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) made this disclosure in a press statement on Wednesday.

The statement is in response to allegations by Independent Petroleum Marketers Association Nigeria (IPMAN Suleja Branch) on product scarcity as a result of non-payment of bridging claims.

The statement signed by the agency’s corporate communication department said the Authority Chief Executive of the NMDPRA at a meeting held on 17th May 2022 with IPMAN, discussed bridging payment extensively, and the processes explained and agreed upon by IPMAN.

It also noted that NMDPRA management assured

IPMAN of willingness to continue making payment of outstanding claims to promote seamless operations.

The state reads, “Pursuant to the meeting, the NMDPRA went ahead to make additional payment of N10bn in June and sought for an upward review of the freight rate which was approved by President Muhammadu Buhari and is currently being implemented.

Read also: World Bank cautions against Nigeria’s rising fuel subsidy payments

“The Authority wishes to reiterate that bridging payment is an ongoing process which is carried out after due verification exercise by the Authority and Marketers.

“So far, the Authority paid N71,233,712,991 bridging claims and another N2,736,179,950.84 freight differentials to the Marketers as at 6th June, 2022.

A breakdown of payment to Marketers is as follows: Major Marketers (MOMAN) received N9.958,777,487.24, IPMAN members were paid N42,301,923,616.96, NNPC Retails N6,661,459,118.61 while DAPPMAN members were paid N12,303,195,651.57, these translate to a total of N73,969,892,941.84.

The statements reads further, “It is disheartening that despite these payments and increase of N10 bridging cost, which was approved by President Muhammadu Buhari two weeks ago, IPMAN could turn around to accuse the NMDPRA of insensitivity”.

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