Oil Marketers Seek Quick Payment of N130.7b Subsidy Debt

By Dipo Olowookere

An appeal has been made to federal government to ensure that the N130.7 billion subsidy debt is paid promptly to oil marketers in the country.

This appeal was made by Chairman of Major Oil Marketers Association of Nigeria (MOMAN), Mr Andrew Gbodume.

“One of the major challenges facing the Nigerian downstream petroleum sector is still the non-payment of the long outstanding fuel subsidy to oil marketers.

“We appreciate the efforts of the national assembly but the non-payment creates a significantly negative impact on the operational efficiency of the downstream sector of the oil industry, thereby placing a severe strain on its efforts to continually invest in infrastructure and raise industry standards.

“We hope that the debts will be paid in full to the oil marketers as soon as possible,” Mr Gbodume informed newsmen in Lagos recently.

He described MOMAN as a key player in the Nigerian petroleum industry, which has progressively gained a reputation since inception.

MOMAN is a downstream oil and gas group made up of six major marketers; 11Plc (formerly Mobil Oil Nigeria), Conoil, OVH Energy Marketing Limited, Forte Oil, MRS and Total Nigeria Plc.

The MOMAN chief said the N130.7 billion subsidy debt as at August 2018 should be paid so as not to distort the availability of petroleum products in the county.

According to him, oil marketers are working tirelessly with the Petroleum Products Marketing Company (PPMC), to ensure to ensure fuel availability and prevent fuel scarcity that rocked the nation in December 2017.

“We need to move away from the present arrangement because downstream sector needs investment. The banks are not willing to lend to the downstream sector because of the present arrangement,” he said.

He, however, commended the PPMC for its efforts over the years in ensuring consistent product supplies.

“We cannot but acknowledge and appreciate the efforts of the PPMC over the last few months in ensuring consistent supply of petroleum products within the country. PPMC has demonstrated its resolve in guaranteeing a non-repeat of the scarcity the nation experienced at the end of 2017 and quite frankly has done well so far,” he said.