N800b Subsidy Debt: Oil Marketers Give Fed Govt 7-day Ultimatum To Pay Cash

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N800b Subsidy Debt: Oil Marketers Give Fed Govt 7-day Ultimatum To Pay Cash

N800b Subsidy Debt: Oil Marketers Give Fed Govt 7-day Ultimatum To Pay Cash
December 03
14:32 2018

Oil marketers yesterday gave the Federal Government a seven-day ultimatum to pay them  N800 billion.

They threatened to wind up operations at the depots across the country should the government fail to settle them.

According to them, the government should pay the arrears in cash and not as promissory note.

The marketers, comprising Major Oil Marketers Association of Nigeria (MOMAN), Depot and Petroleum Products Marketers Association (DAPPMA) and Independent Petroleum Products Importers (IPPIs), said they would force their members to disengage workers from depots after the expiration of the ultimatum.

Confirming the development, IPPI’s legal adviser Patrick Etim claimed that the investments and assets of oil marketers have been taken over by banks of unpaid debts.

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

He said: “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.’’

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.’’

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.

DAPPMA’s Executive Secretary Olufemi Adewole also confirmed the issuance of notice.

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

The DAPPMA spokesman said: “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.’’

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

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