Oil marketers threaten to shut depots over N800bn unpaid subsidy

Gov Abiodun congratulates Charles Akinola on appointment as Managing Director, South West Development Commission

Oba Adenugba congratulates Tele Ogunjobi on appointment as Executive Director, South West Development Commission

Senator Salisu Shuaib donates solar power system, laptops to Ogun NUJ

Oil marketers on Sunday in Lagos gave the Federal Government
seven-day ultimatum to settle outstanding debts totalling N800 billion,
failing which depots would cease operation across the country.

The marketers, comprising Major Oil Marketers Association of Nigeria
(MOMAN), Depot and Petroleum Products Marketers Association (DAPPMA) and
Independent Petroleum Products Importers (IPPIs), said failure to meet
the deadline would force its members to disengage workers from depots.

Confirming the seven-day notice, Mr Patrick Etim, Legal Adviser to
IPPI said that banks have taken over
investments and assets of oil marketers over unpaid debts.

According to Etim, marketers have no choice than to ask their workers
to stay at home over unpaid salary arrears due to huge subsidy debts
owed by the government.

“The only way to salvage the situation is for government to pay the oil
marketers the outstanding debts through cash option instead of
promissory note being proposed.

“As I speak, nothing has been done several months after assurances
received by government saying it would pay off the outstanding debts.

“The oil marketers have requested that forex differential and interest
component of government’s indebtedness to marketers be calculated up to
December 2018 and be paid within next seven days from the date of the
letter sent to the government,’’ he said.

Etim said that several thousand jobs were on the line in the
industry, as oil marketers began cut-down of their workforce due to
inability to pay salaries.

“At the inception of the current administration, marketers engaged the
government with the view to secure approval for all outstanding
subsidy-induced debts handed over to the current administration,’’ he
said.

The counsel said that the current administration paid part of the debts
with a substantial portion of the subsidy interest and foreign exchange
differential still pending.

The Executive Secretary of DAPPMA, Mr Olufemi Adewole, also confirmed the seven-day ultimatum notice.

Adewole disclosed that the oil marketers on Nov. 28 served the
ultimatum letter on the Debt Management Office (DMO), Minister of
Finance, Chairman, Senate Committee on Petroleum Downstream, Department
of State Services and Minister of State, Petroleum Resources.

“We urge the DMO to process and pay marketers in cash for their
outstanding forex differentials and interest component claims, together
with the amount already approved by the Federal Executive Council (FEC)
and the National Assembly.

“Marketers are not in a position to discount payment on the subsidy-induced debt owed as proposed by DMO.

“The expected payment is made up of bank loans, outstanding admin
charges due to PPPRA, outstanding bridging fund due Petroleum
Equalisation Fund (Management) Board and in a few cases AMCON judgment
debts.

“We urge that the Federal Executive Council (FEC) approved payment
instrument, (the promissory note) be substituted with cash and paid
through our bankers to stop the avoidable waste of public funds through
these debts accruing interest,’’ he said.

DAPPMA also urged government institutions involved in resolving the
lingering problem to appreciate the situation marketers faced and
expedite payment of the debts in full without further delay.