Oil marketers should expect N236 billion payment from the Federal Government on Friday as the first tranche of the outstanding N348 billion subsidy claims by the Major Oil Marketers Association of Nigeria (MOMAN) and the Depot and Petroleum Products Marketers Association (DAPPMA).
News of the proposed payment emerged yesterday after a meeting between officials of the Nigerian National Petroleum Corporation (NNPC) and representatives of the petroleum product marketers.
The oil marketers had said earlier yesterday that contrary to reports, they were yet to reach an agreement with the Federal Government on the N800 billion subsidy arrears and declared the ultimatum to stop depot operations tomorrow remained unchanged.
Executive Secretary of DAPPMAN Olufemi Adewole said in a statement in Lagos that offers by government failed to meet the legitimate demands of the association.
“We did not sign the purported document with government as claimed. We still stand by our ultimatum which will expire on Monday,” Adewole said.
But a few hours thereafter, the Chief Operating officer, Downstream of the Nigerian National Petroleum Corporation (NNPC) Henry Nkem-Obih said an agreement had eventually been reached by the two parties.
According to him, the first tranche will be paid on Friday while an arrangement will be made on the payment of the balance.
His words: “We agreed that after the first tranche is paid, the marketers would form a committee to work on details of how the next tranche will be paid in 2019 and the last tranche in 2020.
“Government is fully committed to pay the first tranche as promised and will be paid through promissory notes that would be issued by the Debt Management Office (DMO).”
He said the decision to pay through promissory notes was based on the need to manage cash injection into the economy, noting that injecting cash of that magnitude into the economy might affect the country negatively.
The NNPC downstream boss said the mode of settlement had been agreed between the Federal Government and the oil marketers since 2017, adding that the decision was not new.
He noted that the Federal Government had decided to pay the money to the oil marketers in full and had directed that there would be no deductions from the marketers’ account to settle debts owed government.
Continuing, he said: “Some oil marketing companies, DAPPMA and MOMAN members are indebted to Federal Government agencies like the Federal Inland Revenue Service (FIRS) but the government has directed that the debts should not be deducted from the payments. This is because if we do most of the marketers would be left without a dime.”
Explaining the disparity between the N800 billion claimed by the oil marketers and the N348 billion approved by the National Assembly, the downstream chief executive said the debt position of all the marketers to the government was considered and agreed upon as at June 30, 2018 and presented to the National Assembly for approval, which after consideration of the debts, approved the sum of N348 billion.
He assured Nigerians that the NNPC was ready to ensure stable supply of petroleum products during the Yuletide period and beyond, stating the corporation currently has over 2.8 billion litres of Premium Motor Spirit (PMS) also known as petrol, which would last the country for 55 days while 90,000 metric tonnes of diesel, imported by the Petroleum Products Marketing Company (PPMC) and NNPC Retail, would arrive the country in a few days time.
Ikem-Obih said MOMAN, DAPPMA and IPMAN had assured the Federal Government that their facilities would be available throughout the festive period, while all the NNPC depots across the country and its 618 retail outlets would also be dispensing the products.
Chief Executive Officer of A.A. Rano Limited, Alhaji Aliyu Sa’id dissociated the company from the planned shutdown by DAPPMA and MOMAN, stating that the timing was wrong.
He said oil marketers should not be seen as sabotaging efforts of government in ensuring stable fuel supply during the Yuletide season and beyond.
Managing Director/Chief Executive Officer of A.Y.M. Shafa Ahmad Abdullahi, declared that at this time that the country is going through series of challenges, security and financial, any attempt to worsen the plight of Nigerians would be seen as an attempt to put the country in chaos.
Group Managing Director of Obat Oil and Gas, Prince Akinfemiwa Akinruntun, said the company was ready to support the government by loading products on a 24 hours basis, noting that the NNPC had been supportive of oil marketers over the years.
He noted that national interest supersedes personal interest.
He urged Nigerians to avoid panic buying as efforts would be geared towards ensuring stability in petroleum products supply.