N800b Debt: Fuel Scarcity Looms as Oil Marketers Threaten Showdown

By Modupe Gbadeyanka

Federal government has been given a seven-day ultimatum to settle outstanding debts totalling N800 billion or risk the nation would be forced into another fuel scarcity.

This threat was made by oil marketers in the country under the umbrellas of Major Oil Marketers Association of Nigeria (MOMAN), Depot and Petroleum Products Marketers Association (DAPPMA) and Independent Petroleum Products Importers (IPPIs).

On Wednesday, November 28, 2018, the oil marketers served the ultimatum letter on the Debt Management Office (DMO), Minister of Finance, Chairman, Senate Committee on Petroleum Downstream, Department of State Services and Minister of State, Petroleum Resources.

Legal Adviser to IPPIs, Mr Patrick Etim, said banks have taken over investments and assets of his clients over unpaid debts, noting that they have no choice that to ask their workers to stay at home over unpaid salary arrears due to huge subsidy debts owed by the government.

“The only way to salvage the situation is for government to pay the oil marketers the outstanding debts through cash option instead of promissory note being proposed,” he said.

“As I speak, nothing has been done several months after assurances received by government saying it would pay off the outstanding debts.

“The oil marketers have requested that forex differential and interest component of government’s indebtedness to marketers be calculated up to December 2018 and be paid within next seven days from the date of the letter sent to the government,” the legal counsel said.

“At the inception of the current administration, marketers engaged the government with the view to secure approval for all outstanding subsidy-induced debts handed over to the current administration,” he added.

Mr Etim said further that the current administration paid part of the debts with a substantial portion of the subsidy interest and foreign exchange differential still pending.

On his part, Executive Secretary of DAPPMA, Mr Olufemi Adewole, urged the “DMO to process and pay marketers in cash for their outstanding forex differentials and interest component claims, together with the amount already approved by the Federal Executive Council (FEC) and the National Assembly.”