Petroleum
products marketers may soon stop fuel importation, raising the
prospects of another scarcity as unpaid subsidy arrears hits about
N170bn.
The unpaid subsidies have piled up due to stringent verification process after a legislative audit last year uncovered a widespread fraud in the fuel subsidy regime.
A breakdown of the current figures showed that while subsidy arrears to be paid to major marketers, including Total Nigeria Limited, Oando Nigeria Plc, Mobil Oil Nigeria Plc and Conoil Nigeria Plc amounted to N100bn, that of independent marketers amounted to N70bn.
The Executive Secretary, Major Markers Association, Mr. Thomas Olawore, who confirmed the development in a telephone interview, said that the huge indebtedness had impacted negatively on their operations.
He said: “Our capacity to import has greatly reduced, meaning that it could get to a point where we can no more be able to do so.
“Some banks have started to complain about nonpayment. But many of them are busy calculating their interests, which the marketers are expected to pay.”
He said it was in the best interest of the nation for the government to pay the subsidy, stressing that it would enable marketers to import more fuel for domestic consumption.
Olawore said: “Marketers have in the past five months tried to sustain importation in order to ensure there was adequate fuel supply in all parts of the nation because of patriotism. But it could get to a point where we may not be able to import anymore.”
http://nationalmirroronline.net/new/unpaid-fuel-subsidy-hits-n170bn/
The unpaid subsidies have piled up due to stringent verification process after a legislative audit last year uncovered a widespread fraud in the fuel subsidy regime.
A breakdown of the current figures showed that while subsidy arrears to be paid to major marketers, including Total Nigeria Limited, Oando Nigeria Plc, Mobil Oil Nigeria Plc and Conoil Nigeria Plc amounted to N100bn, that of independent marketers amounted to N70bn.
The Executive Secretary, Major Markers Association, Mr. Thomas Olawore, who confirmed the development in a telephone interview, said that the huge indebtedness had impacted negatively on their operations.
He said: “Our capacity to import has greatly reduced, meaning that it could get to a point where we can no more be able to do so.
“Some banks have started to complain about nonpayment. But many of them are busy calculating their interests, which the marketers are expected to pay.”
He said it was in the best interest of the nation for the government to pay the subsidy, stressing that it would enable marketers to import more fuel for domestic consumption.
Olawore said: “Marketers have in the past five months tried to sustain importation in order to ensure there was adequate fuel supply in all parts of the nation because of patriotism. But it could get to a point where we may not be able to import anymore.”
http://nationalmirroronline.net/new/unpaid-fuel-subsidy-hits-n170bn/
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