Oil Marketers Hands FG 7-Day Ultimatum Over Subsidy Debts
crude oil

Oil marketers have handed the federal government a seven-day ultimatum to pay all outstanding subsidy debts.

This ultimatum came on Sunday from the oil marketers under the umbrella of Major Oil Marketers Association of Nigeria, Depot and Petroleum Products Marketers Association of Nigeria and the Independent Petroleum Products Importers.

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According to the Legal Adviser of IPPI, Patrick Etim, “At the inception of the current administration, marketers engaged the government with a view to securing approval for all outstanding subsidy-induced debts handed over to the current administration.”

He added that the present government paid some part of the debts with a substantial portion of the interest and foreign exchange differential still pending.

Also, the Executive Secretary of DAPPMAN, Olufemi Adewole, confirmed the development.

In addition, he noted that the ultimatum letter was served on November 28 to the Debt Management Office; the Minister of Finance; Chairman, Senate Committee on Petroleum Downstream; the Department of States Services and the Minister of State for Petroleum Resources for urgent payment of outstanding subsidy debts to marketers.

“We urged 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 and the National Assembly,” he said.

“Marketers are not in a position to discount payment on the subsidy-induced debt owed as proposed by the DMO: the expected payment is made up of bank loans, outstanding administration charges due the Petroleum Products Pricing Regulatory Agency, outstanding bridging fund due Petroleum Equalisation Fund (Management) Board and, in a few cases, AMCON judgment debts.

“We urged that the FEC approval 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.”