Oil marketers cry out over unpaid subsidy arrears
Oil marketers in the country have cried out over the continued delay by the Federal Government in paying subsidy arrears accrued to them.
According to the Major Oil Marketers Association of Nigeria, MOMAN and the Depot and Petroleum Products Marketers Association of Nigeria, DAPPMAN, the delay is impacting negatively on their businesses.
The marketers called on government to facilitate the payment of the debts by the agencies saddled with the responsibility.
It would be recalled that the Senate had approved the request by President Mohammadu Buhari for the payment of subsidy claims amounting to N348 billion to oil companies in July.
Speaking on the issue, the Executive Secretary, MOMAN, Mr Clement Isong, appealed to the government to hasten the payment of the subsidy arrears owed to them, adding that the continued non-payment had severely impacted their working capital and their ability to pay bank loans and their service providers.
He said: “We appreciate the efforts of the National Assembly and the Federal Executive Council in approving payment but the non-payment has a significantly negative impact on the operational efficiency of the downstream sector of the oil industry, thereby placing a severe strain on players’ efforts to continually invest in infrastructure and raise industry standards. We hope that the debts will be paid in full to the oil marketers as soon as possible.”
Isong said the debt owed to MOMAN members alone stood at N130.7bn as of August 2018.
Read also: FG approves N60bn subsidy to drive down price of rice
Also speaking, the Executive Secretary, DAPPMAN, Mr Olufemi Adewole, faulted the processes highlighted for payment by the government, saying, they were inimical to the operations of their businesses.
He said: “The processes they have highlighted are killing our businesses. Immediately the banks read in the media that the National Assembly had approved, they went to court, got an injunction and seized our assets.”
According to Adewole, some marketers had been forced out of business as banks had taken over their depots, assets and properties due to their inability to pay back monies borrowed to import fuel, while others were struggling to survive.
“The debt has had very adverse effects on our operations. I am aware of two depots that have been forcibly taken over by banks because they got injunctions from the courts. They did so the moment they heard that the National Assembly approved payment of the debt to marketers. Unfortunately, as of today, the money has yet to get into our accounts,” he added.
Join the conversation
Support Ripples Nigeria, hold up solutions journalism
Balanced, fearless journalism driven by data comes at huge financial costs.
As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.
If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.
Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.
INVESTIGATION: 4 yrs after completion, Kwara PHC facility inactive, rural dwellers in pains
In the middle of the night sometime in September 2019, Fatimah Ballah struggled with severe pains as she tries to...
INVESTIGATION: How Oyo State, contractors spent N1.1bn on water projects, but communities don’t have a drop
Multimillion naira water projects largely initiated by the late Abiola Ajimobi-led state government in Oyo State to benefit over 40...
INVESTIGATION: In Cross River, civil servants retire into poverty as govt looks away, squanders funds on frivolities
Thousands of civil servants in Cross River State struggle to stay alive as they are denied their gratuities and monthly...
Students suffer as contractors abandon Kano school projects after receiving over N70m
In 2019, to improve the condition of public schools in Kano State, the Federal Government disbursed millions of naira to...
SPECIAL REPORT: World Bank road projects go bad in Enugu, as state govt fails to fulfill promise
Counterpart funded road projects between the world Bank and Enugu State government have started to fail, as the state government...