By Foster Obi
Indications for another cycle of fuel scarcity in the country emerged on Saturday as oil marketers said they were yet to reach an agreement with the Federal Government on the N800 billion subsidy arrears. The marketers’ ultimatum to government to pay them or risk the shutdown of depots expires on Monday. A statement released by Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), signed by Olufemi Adewole, Executive Secretary, said the association will proceed with plans for a shutdown.
The statement said the offer by the Federal Government has 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 stated.
The Federal Ministry of Finance on December 6th said that the Federal Government and petroleum marketers had agreed on the settlement of outstanding claims. The ministry, in a statement issued by Mr Paul Abechi, Spokesman for the Minister of Finance, Mrs Zainab Ahmed, in Abuja, assured that operations at all depots and sales would continue until further notice. The oil marketers had on the 2nd of December given the federal government seven-day ultimatum to settle outstanding N800 billion subsidy payment debts, failing which they would cease depots operations.
“We refer to the press release from the Federal Ministry of Finance following the meeting with marketers under the aegis of DAPPMAN, MOMAN and IPMAN and most respectfully refute its contents with the following clarifications. “DAPPMAN reiterates that there was no agreement reached because offers by government failed to meet the legitimate demands of the association and we did not sign the purported document. “Hence, our ultimatum stands as we cannot continue to borrow from banks to pay staff salaries.
“DAPPMAN’s demands made to the FG through the Honourable Minister of Finance and Debt Management Office was to pay cash and the total sum of indebtedness to marketers within the time frame. “This was expressed in communications with the government, Ministry and other relevant office,” the statement said. According to the marketers, this is to enable them continue in business, pay staff and not rely on facilities from banks which are no longer forthcoming.
“We affirm that of all stakeholders, MOMAN, IPMAN and DAPPMAN that participated in the PSF scheme, DAPPMAN has the largest debt exposure in the downstream sector. “DAPPMAN has alerted the FG to this dire situation and specifically to the challenge our member companies face, leading to our inability to pay December 2018 salaries to our teeming work force without the immediate settlement of the debts owed by the FG.
“Most unfortunately, this has not been heeded. “Since government globally is recognised as a continuum, FG is obliged to settle all legitimately incurred and verified Sovereign debts due to marketers promptly,” Adewole said. The marketers noted that those debts owed to them actually belonged to banks, their shareholders, depositors and other Federal Government Agencies such as PPPRA, PEF-M-B, AMCON. They noted that the said banks, in compliance with extant banking regulations of the CBN, recently pounced on marketers with non-performing loans, taking over their depots and also cutting off any form of trading loans to them.
“As a result, thousands of families have lost their means of livelihood. “Many more marketers will follow suit in the event that FG does not settle these debts to marketers. “Unfortunately based on the FG, failed promises to address the sovereign debt which was then less than N350 billion, it has grown to over N800 billion and still Federal has yet to pay. “December 2018 makes it 18 months after FEC approval for this payment and three months after the National Assembly (NASS) approval, yet marketers have not been paid.“We emphasise that FG’s proposed payment of promissory notes is not acceptable to DAPPMAN. Will want our money paid in cash. “This will adversely affect the financial system taking due cognisance of the futuristic nature of this proposed mode of financial.
”Therefore, as from today, our work force, save for security operatives, will effective, 7th December 2018 cease to be on our payroll pending payment of the debt owed by the Federal Government,” the marketers declared.
Pix: Petroleum tankers waiting to load at an NNPC depot
