N800bn subsidy debt: MOMAN, DAPPMA appeal to FG on settlement

OIL marketers under the aegis of Major Oil Marketers Association of Nigeria (MOMAN) and Depot and Petroleum Products Marketers Association (DAPPMA) have appealed to the Federal Government for prompt payment of over N800 billion outstanding subsidy debt owed to save marketers from total shut down of operations.

The marketers made the appeal in a joint interactive session with journalists on Sunday in Lagos on the need for government agencies saddled with the payment to expedite action to save marketers from closing shop as interest on loans keeps increasing.

It would be recalled that on October 31, the Senate Committee on Petroleum (Downstream), in its resolution, had directed the Ministry of Finance and Debt Management Office (DMO) to hold a meeting with the oil marketers and other stakeholders to agree on the grey areas and report back within one week.

Executive Secretary, MOMAN, Mr Clement Isong, appealed to the government to hasten the payment of the outstanding debt on fuel import subsidy arrears owed the marketers as the continued non-payment has severely limited their access to credit and negatively impacted their working capital leading to their inability to pay their banks and their service providers.

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Besides, the Executive Secretary, Deport and Petroleum Products Marketers of Nigeria (DAPPMA), Olufemi Adewole, said the processes highlighted for payment by the government were inimical to the operations of their businesses.

According to him, “The processes they have highlighted are killing our businesses. Immediately the banks read in the media that the National Assembly had approved, they went to court, got injunction and seized our assets.”

Adewole said that 60 per cent of marketers have been forced out of business as banks have taken over their depots, assets and properties due to their inability to pay back monies borrowed to import fuel.

He said many marketers were forced out of business, while others are struggling to survive due to the government’s inability to settle the subsidy arrears, saying the development is threatening investment in the downstream subsector.

The DAPPMAN scribe said, although the Federal Government has earmarked money to clear the debts, the marketers were yet to be paid.

“The debt 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. They did so the moment they heard that the National Assembly approved payment of the debt to marketers. Unfortunately, as at today, the money was yet to get into our accounts.”