Oil marketers to get N236bn Subsidy claims by Dec. 14th —FG

The Federal government said oil marketers would be paid N236
billion out of N348 billion approved by the National Assembly as
outstanding subsidy claims on Friday, Dec. 14th.

The Chief Operating Officer, Nigerian National Petroleum
Corporation (NNPC) Downstream, Mr Henry Ikem-Obih disclosed this to
newsmen in Abuja on Saturday.

“The Debt Management Office (DMO) will by next week, precisely
on Dec. 14th, pay oil marketers first part of the subsidy arrears
of N236 billion as agreed by both parties.

“We agreed that after the first tranche is paid, the marketers
will form the committee to work on details of how the next tranche
will be paid in 2019 and the last paid in 2020.

“Government is fully committed to pay the first tranche as
promised and will be paid through the promissory note that will be
issued by the DMO,’’ he said.

Ikem-Obih said that oil marketers equally owed the government
some debt which would not be deducted from the first tranche of
payment.

He said that it was unfortunate that Depot and Petroleum Product
Marketers Association of Nigeria (DAPPMAN) had issued a counter
statement from what was agreed at the meeting held with all
stakeholders on Thursday.

It will be recalled that stakeholders in the oil sector held a
meeting at the Ministry of Finance on Thursday and reached an
agreement on how to pay outstanding subsidy claims to
marketers.

DAPPMAN on Friday issued a counter-statement saying that there
was no agreement reached with government because it failed to reach
legitimate demands of the association which was that the claims
should be paid in cash instead of through the promissory notes.

He said that Independent Marketers Association, DAPPMAN, Major
Oil Marketers (MOMAN), CBN, PPPRA, among others were part of the
meeting.

“Government is committed to doing what we agreed on and that is
why they get the first tranche by next week.

“We have told marketers that what government is doing now is
honest and highly transparent,’’ he added.

Ikem-Obih urged Nigerians not to panic as the NNPC and all other
stakeholders will ensure that there was no scarcity of the product
throughout the yuletide season.

“Currently, we have 55 days of Premium Motor Spirit (PMS)
storage in the country which translates to 2.8 million litres in
volume and 90,000 metric tonnes of diesel.

“The 90,000 metric tonnes is supplied by NNPC and it’s
subsidiary PPMC and we will continue to import,’’ he added

He said that apart from imported products, the Warri refinery
had on Thursday started refining products and the Port Harcourt
Refinery would soon kick off refining.

This, he said would continue to boost the quantity of product in
the country.

In an interview, some marketers who spoke to News Agency of
Nigeria (NAN) commended the government and assured that they would
support efforts towards ensuring smooth supply and distribution of
petroleum products in the country.

Alhaji Aliyu Sa’id, Managing Director of AA Rano filling station
said that national interest must be upheld and it would be wise for
DAPMAN to give the government a chance.

“We have enough products and we will not shut down for any
reason, we do not want Nigerians to suffer during this period and
that is why we are supporting government effort,’’ he said

Also, managing Director of AYM Shafa filling station said that
they would work to ensure that there was no scarcity of products in
the country during the yuletide season.

“We will support government efforts to ensure smooth supply and
distribution of products especially during the Christmas season,’’
he added.

NAN reports that other marketers who promised to ensure free
flow of the product in the country include Obat oil PLC, ED Tonimas
Nigeria Limited, among others. (NAN)

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