Oil marketers have appealed to Nigeria to
hasten payment of over US$2 billion subsidy arrears to save their
assets from being taken over by banks.
hasten payment of over US$2 billion subsidy arrears to save their
assets from being taken over by banks.
The marketers, under the aegis of Major Oil Marketers Association of Nigeria (MOMAN), made the call in Lagos.
Members of the association include
Independent Petroleum Marketers Association of Nigeria (IPMAN); Depot
and Petroleum Products Marketers Association (DAPPMA) and Independent
Petroleum Products Importers (IPPIs).
Independent Petroleum Marketers Association of Nigeria (IPMAN); Depot
and Petroleum Products Marketers Association (DAPPMA) and Independent
Petroleum Products Importers (IPPIs).
The Executive Secretary of DAPPMA, Mr
Olufemi Adewole, urged the government to lessen the bureaucratic process
involved in the payment process.
Olufemi Adewole, urged the government to lessen the bureaucratic process
involved in the payment process.
According to him, the inability of
federal government to pay the debt had resulted in massive job losses in
the oil and gas industry, which has affected the marketers’ operation.
federal government to pay the debt had resulted in massive job losses in
the oil and gas industry, which has affected the marketers’ operation.
Adewole said that 60 per cent of
marketers had been forced out of business, as banks had taken over their
depots, assets and properties due to their inability to pay back monies
borrowed.
marketers had been forced out of business, as banks had taken over their
depots, assets and properties due to their inability to pay back monies
borrowed.
He added that many marketers were forced
out of business, while others are presently struggling to survive due to
the unpaid subsidy arrears.
out of business, while others are presently struggling to survive due to
the unpaid subsidy arrears.
Adewole also said that the development has been threatening investment in the downstream sector.
“It has had very adverse effects on our
operations. I am aware of two depots that have been forcibly taken over
by banks because they got injunctions from the courts.
operations. I am aware of two depots that have been forcibly taken over
by banks because they got injunctions from the courts.
“They did so the moment they heard that
National Assembly has approved payment to marketers. Unfortunately, as
at today, Sept. 27, the money is yet to get into our accounts.
National Assembly has approved payment to marketers. Unfortunately, as
at today, Sept. 27, the money is yet to get into our accounts.
“Another challenge we have is that many
of the marketers had to lay off more than 90 per cent of their staff
because of financial challenges.
of the marketers had to lay off more than 90 per cent of their staff
because of financial challenges.
“Although, few of them are still operating, but not in good number with just about three to four staffs,” he said.
Similarly, the Chairman of South-West
Chapel of the Nigeria Union of Petroleum and Natural Gas Workers
(NUPENG), Mr Tayo Aboyeji, said that loading activities had been bad at
most private depot.
Chapel of the Nigeria Union of Petroleum and Natural Gas Workers
(NUPENG), Mr Tayo Aboyeji, said that loading activities had been bad at
most private depot.
Aboyeji attributed the situation to the inability of the marketers to import petroleum products.
He said that most drivers had been
lamenting low patronage from private depots due to non-payment of
marketers’ subsidy arrears, among other factors.
lamenting low patronage from private depots due to non-payment of
marketers’ subsidy arrears, among other factors.
Aboyeji said the situation had made some depots to convert workers into contract staff.
“Government should find a way to pay the marketers and deregulate the sector to allow more players into the industry.
“When the downstream is fully
deregulated, more marketers will engage in importation and it will help
tanker drivers in their businesses because of the financial
challenges,’’ he said.
deregulated, more marketers will engage in importation and it will help
tanker drivers in their businesses because of the financial
challenges,’’ he said.
However, he regretted that the
government, as against paying part of the money in promissory note and
cash, may pay only in promissory note.
government, as against paying part of the money in promissory note and
cash, may pay only in promissory note.
Adewole frowned at the prospect of having to go back and discount the promissory note in the bank.
“This means we are losing, because the money had been delayed and this adds up the interest to be charged on our accounts.
“Although, what was approved to be paid is not the actual amount the government owes us.
“The interest came about as a result of devaluation of naira from N197 to N285 to a dollar,” he said.
Meanwhile, a source, who is an independent marketer, urged government to deregulate the downstream sector.
He said that the deregulation would curb the huge amount of money spent on subsidy.
According to him, marketers have run out
of cash and their businesses are gradually going moribund as a result of
capital been stocked.
of cash and their businesses are gradually going moribund as a result of
capital been stocked.
“No marketer can import petrol with the present price differential
“We cannot buy fuel at N174 per litre at
the international market and government is forcing us to sell at N145
without paying the differentials.
the international market and government is forcing us to sell at N145
without paying the differentials.
“That was the reason we are urging the
government to urgently embark on full deregulation of the sector to
create free flow market and allow government to use the money to develop
other sector,’’ he said.
government to urgently embark on full deregulation of the sector to
create free flow market and allow government to use the money to develop
other sector,’’ he said.
According to him, only the NNPC imports
fuel and then use its discretion to allocate products to marketers,
adding that if deregulated it will also help government to invest the
subsidy money into other sectors.
fuel and then use its discretion to allocate products to marketers,
adding that if deregulated it will also help government to invest the
subsidy money into other sectors.
