SAN FRANCISCO, December 09, (THEWILL) – The Federal government said oil marketers would be paid N236 billion out of N348 billion approved by the National Assembly as outstanding subsidy claims on Friday, December 14.
The Chief Operating officer, Nigerian National Petroleum Corporation (NNPC) Downstream, Henry Ikem-Obih, disclosed this to journalists in Abuja on Saturday.
“The Debt Management Office (DMO) will by next week, precisely on Dec. 14th, pay oil marketers first part of the subsidy arrears of N236 billion as agreed by both parties.
“We agreed that after the first tranche is paid, the marketers will form committee to work on details of how the next tranche will be paid in 2019 and the last paid in 2020.
“Government is fully committed to pay(ing) the first tranche as promised and will be paid through promissory note that will be issued by the DMO,’’ he said.
Ikem-Obih said that oil marketers equally owed the government some debt which would not be deducted from the first tranche of payment.
He said that it was unfortunate that Depot and Petroleum Product Marketers Association of Nigeria (DAPPMAN) had issued a counter statement from what was agreed at the meeting held with all stakeholders on Thursday.
THEWILL recalls that DAPPMAN on Friday issued a counter-statement saying that there was no agreement reached with the government because it failed to reach legitimate demands of the association which were that the claims should be paid in cash instead of through the promissory notes.
But Ikem-Obih stated that Independent Marketers Association, DAPPMAN, Major Oil Marketers (MOMAN), CBN, PPPRA, among others were part of the meeting.
“Government is committed to doing what we agreed on and that is why they get the first tranche by next week.
“We have told marketers that what government is doing now is honest and highly transparent,” he added and urged Nigerians not to panic as the NNPC and all other stakeholders will ensure that there was no scarcity of the product throughout the yuletide season.
“Currently, we have 55 days of Premium Motor Spirit (PMS) storage in the country which translates to 2.8 million litres in volume and 90,000 metric tonnes of diesel.
“The 90,000 metric tonnes is supplied by NNPC and it’s subsidiary PPMC and we will continue to import,” he revealed.
He said that apart from imported products, the Warri refinery had on Thursday started refining products and the Port Harcourt Refinery would soon kick off refining.
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