Fuel scarcity threats as FG owes independent oil marketers N100 billion

by Chi Ibe

(Photo: thenigerianreporter)
(Photo: thenigerianreporter)

There are fears that another nationwide fuel scarcity is around the corner following reports that the Federal Government owes huge fuel subsidy dues allegedly to the oil marketers.

It was revealed that over N100 billion in debt were owed to about 43 independent oil marketers for petroleum products imported into the country since last year.

An undisclosed official to investigative reporters that the debt could rise to about N200 billion if subsidy claims by the Nigerian National Petroleum Corporation was considered and if the federal government did not fix the situation now, it might lead to another round of fuel scarcity in the country.

“The Federal Government still owes us money for fuel subsidy. As I speak to you, the other payment that we are being owed is over N100bn and this amount covers the last quarter of 2012 till now.

“There are about 42 or 43 oil marketers that have oil depots and these are the numbers being owed.

“We borrow money from banks to import fuel into this country and they continue to owe us billion of naira.

“The more they delay in paying us our claims, the higher the interest rates from the banks,” he said.

The source told reporters that apart from the payment made from the N161 billion fuel subsidy supplementary budget of 2012, no other payment had been made.

The Punch reports:

The Minister of Finance, Dr. Ngozi Okonjo-Iweala, had shortly after the passage of the bill in December by the National Assembly said that a total of N94bn for 23 oil marketers had been paid.

The minister had on January 8, 2013 said while 23 marketers had been paid; the claims of 27 others were being processed.

She had said, “As of now (January 8), 23 marketers have done their paper work so they may still have outstanding claims because we do them in batches through the Petroleum Products Pricing Regulatory Agency and the Debt Management Office.

“Some of them who have cleared may also come back because I have a list of 27 marketers for the remainder of the money, but some of them have already featured under this 23 and they may have to come back.”

When reminded about the payment made by the Federal Government in January, the source said the money was used to settle outstanding marketers’ claims that arose from the Aigboje Aig-Imoukhuede committee’s report.

“In the wake of the Imokhuede report, there were some payments that were suspended. When the figures were reconciled, that supplementary budget was used to pay those claims. There is no news yet on subsidy payment between last quarter and now,” he said.

The official also said the delay by President Goodluck Jonathan to assent the 2013 budget, which had a provision of N971bn for fuel subsidy, might have caused the non-payment.

 

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