Oil marketers give FG seven days to pay N800b subsidy debts

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

The marketers, comprising Major Oil Marketers Association of
Nigeria, Depot and Petroleum Products Marketers Association and
Independent Petroleum Products Importers, 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 told the News Agency of Nigeria that banks have taken over
investments and assets of oil marketers over unpaid debts.

According to Etim, marketers have no choice that 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 begin to cut-down 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 November 28 served
the ultimatum letter on the Debt Management Office, 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.”

(NAN)

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