Govt pays N156bn oil debt: 'We'll not work until credit alert' - Marketers

dimeji akinloye

April 30, 2015 11:41 PM

The Federal Government said it has paid N156 billion debt to oil marketers in line with its commitment to prioritise payments in spite of revenue constraints

As contained in a statement by the Special Adviser to the Coordinating Minister and Minister of Finance, Mr Paul Nwabuikwu, in Abuja on Thursday, April 30, the payment had two components comprising `I owe you' (IOU), given in March and interest on payment.

“The first consists of the cash backing of the N100 billion IOU which the marketers were given in March. The second is N56 billion in interest payments for the marketers according to the PPPRA template.

“This leaves a balance of N98 billion certified by PPPRA as the amount owed the markers,” the statement stated.

It said the N156 billion is the latest in a series of significant payments made to the oil marketers within the last five months – adding that these included over N300 billion in two instalments in December last year and N31 billion in interest differentials recently.

In the statement, Okonjo-Iweala urged the marketers to appreciate the efforts being made by the government to meet up with their payments.

The coordinating minister also urged them to reciprocate with some understanding of the situation of Nigerians who should not suffer more.

The minister urged the marketers to sustain the distribution and supply of fuel to end the suffering of Nigerians at fuel stations.

“The Federal Government has made maximum effort, in spite of the well-known fact that the fall in oil prices has significantly reduced national revenues, to prioritise payments to marketers.

“For the sake of Nigerians who are bearing the brunt of fuel scarcity, the marketers should reciprocate in the spirit of dialogue and cooperation in which we have always tried to engage them,” she said.

The Executive Secretary, Major Oil Marketers Association of Nigeria (MOMAN), Obafemi Olawore, in a telephone interview with NAN, appreciated the gesture and commended the Federal Government for fulfilling its promises.

Olawore, however, said the association will not take any corresponding action until its members received payment alert from their respective banks.

He said the association is ready to commence importation and distribution of fuel to end the suffering of Nigerians at fuel stations once the money hit their accounts.

He said the members will not work with any paper promise without cash backing.

dimeji akinloye