Subsidy: DMO Ready to Issue Promissory Notes to Pay Oil Marketers

November 21, 2018
oil marketers

By Dipo Olowookere

All is now set for the issuance of promissory notes for the payment of subsidy arrears to oil marketers in the country.

Director General of the Debt Management Office, Ms Patience Oniha, made this disclosure in a statement issued on Monday.

According to her, with required approval received on September 26, 2018 through a letter from the Clerk of the National Assembly, the debt office will now accelerate implementation of the programme in accordance with the process approved by Federal Executive Council (FEC) in July 2017.

Ms Oniha was reacting to concerns raised by the oil marketers, who wondered why the money had not been paid to them despite approval from government.

But the DMO explained that, “It is on record that the required NASS approval was only received on September 26, 2018 through a letter from the Clerk of the National Assembly.”

She said, “With the approval of NASS now in place, the DMO has accelerated implementation of the Programme, which it will implement in accordance with the process approved by FEC.”

The debt office boss stated that, “FEC approved the establishment of the Promissory Note Programme and Bond Issuance to settle inherited local debts and contractual obligations due to various categories of creditors, including oil marketers in July 2017.”

According to her, “These were unpaid obligations carried over from previous administrations. The amounts presented to FEC and subsequently to the National Assembly (NASS), were derived by simply collating figures from various MDAs in order to kick-start the process. Given that these were largely unverified amounts.”

She said, “It became prudent on the part of Government to include processes that would be adopted in the implementation of the programme that would ensure transparency and value for money before the promissory notes are issued.”

“One of such processes is the validation of the amounts against each creditor by an international accounting firm operating in Nigeria.

“Based on the approval by FEC, the DMO initiated steps towards the implementation of the programme, one of which is the appointment of advisers using the provisions of the Public Procurement Act, 2007,” she said further.

Dipo Olowookere

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

Mr Olowookere can be reached via [email protected]

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