FRESH FUEL SCARCITY LOOMS IN NIGERIA, AS OIL MARKETERS GIVE FEDERAL GOVERNMENT 7-DAY ULTIMATUM OVER N800BILLION DEBT

The Legal Adviser to Independent Petroleum Products Importers (IPPI) Patrick Etim, while confirming the seven-day notice, stated that banks have taken over investments and assets of oil marketers over unpaid debts.

He pointed out that, 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, emphasizing that, “the only way to salvage the situation is for Government to pay the oil marketers the outstanding debts through cash option instead of (the) promissory note being proposed’.

He added, “As I speak, nothing has been done several months after assurances received by (the) 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,’’.

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

Hear him, “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,’’.

Penpushing also reports that, Etim explained that the current administration paid part of the debts but added that a substantial portion of the subsidy interest and foreign exchange differential was still pending.

Similarly, the Executive Secretary of Depot and Petroleum Products Marketers Association (DAPPMA) Olufemi Adewole,  confirmed the seven-day ultimatum notice, stating  that the oil marketers on November 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.

His words,“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’.

He said, “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,’’.

The Depot and Petroleum Products Marketers Association (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.

Penpushing, however, reports that, the Nigeria National Petroleum Corporation (NNPC), is currently the sole importer of petrol into Nigeria, but it relies on the depots of the oil marketers to store and transfer petrol, and any closure of the depots by the marketers could thus lead to a fresh round of fuel scarcity similar to that witnessed in December last year.