The Federal Nigerian Government is indebted to petrol marketers to the tune of N53.6m, and the development is a potential predicator of fuel scarcity, Executive Secretary, Major Oil Marketers Association of Nigeria, Mr. Obafemi Olawore said on Monday.
The Federal Nigerian Government is indebted to petrol marketers to the tune of N53.6m, and the development is a potential predicator of fuel scarcity, Executive Secretary, Major Oil Marketers Association of Nigeria, Mr. Obafemi Olawore said on Monday.
Speaking in Lagos during an interview with the News Agency of Nigeria (NAN), Olawore urged the Federal Government to settle the subsidy claims of marketers, saying the N41 billion they were recently paid fell far short of the total arrears owed.
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“As at 1st April 2014, we were still owed an outstanding of over N53.6 billion by government on subsidy, which makes it extremely difficult for marketers to import products into the country”, he said.
“Most major and independent marketers who received Sovereign Debt Note from Debt Management Office last time never had it translated to cash from banks”.
He appealed to the Ministry of Finance to end the difficulty of marketers in securing loans from banks, by approving payment of their subsidy claims.
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He also urged the Petroleum Products Pricing Regulatory Agency (PPPRA) to commence importation of second-quarter allocation of petroleum.
“This is to avoid fuel crisis”, he said. “Delay on allocation of importation might cause product scarcity in the country if not managed carefully”.
On the part of the marketers, Olawore assured that his association would continue supporting the government’s petroleum distribution processes across the country.
Nigeria experienced nationwide fuel scarcity for more than two weeks last month, despite prior repeated assurances from the Nigerian National Petroleum Corporation (NNPC) that the commodity was in circulation in the market, even in excess.
And although the scarcity has since petered out, some petrol stations in some parts of the country, Lagos particularly, have not reverted to the known N97/litre pump price.
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