The Major Oil Marketers Association of Nigeria and the Depot and Petroleum Products Marketers Association have urged the federal government to pay them their outstanding debts.
crude oil

The Major Oil Marketers Association of Nigeria and the Depot and Petroleum Products Marketers Association have urged the federal government to pay them their outstanding debts.

According to them, the development has negatively affected their businesses.

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The Chief Executive Officer/Executive Secretary MOMAN Clement Isong told Punch that “The debt creates serious working capital constraints for all marketers, not just MOMAN, and makes it difficult to run our business. Any business that is owed so much will struggle obviously.”

He noted that “This debt, most of which we in turn owe banks, has completely blocked or limited our ability to access credit.

“We have reached the full extent of our credit with the banks; so, we are struggling to do business. We really need to get paid the outstanding subsidy by [the] government.

“The debt owed MOMAN only is N130.7bn, that is subsidy and interest. What is owed the industry as a whole, I think, is about N400bn. Government should pay what is outstanding; it has been a long time.”

On his part, the Executive Secretary, DAPPMA said, “With the landing cost as it is right now, we can’t bring in products because we can’t absorb the subsidy, and we don’t have access to foreign exchange.

“Aside from that, we are still being owed by the Federal Government. The money that was approved to be paid to us has not been paid.

“The process being undertaken by the government agencies that needed to pay is actually a hindrance, and we are appealing to them to speed things up so that our people can get this money and have some relief.

“If the government takes the bull by the horns and deregulate the sector, then we will see private marketers do what we know best to do.”