The Depot
and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has
petitioned President Muhammadu Buhari and Minister of State for Petroleum
Resources Ibe Kachikwu over the non-payment of their outstanding subsidy in
excess of N650 billion.
The
marketers issued a fresh 14-day ultimatum to the Federal Government to pay up,
failing which they would shut down their depots and embark on a massive sack of
workers.
The
development could set back government’s efforts at easing the scarcity of petroleum
products.
The Nigerian
National Petroleum Corporation (NNPC) uses the private depots to stock most of
its imported products for a fee due to a shortage of storage facilities in the
country.
The
association said: “The unfortunate primary fallout of this step is the likely
shutdown of all DAPPMAN depots nationwide due to lack of manpower to operate
same, pending the time the Federal Government will pay off its indebtedness to
petroleum marketers. This, unfortunately, will have a multiplier effect on the
nationwide supply and distribution of petroleum products, which currently is
still a struggle.”
The
ultimatum, contained in a letter signed by Executive Secretary Olufemi Adewole,
notes: “Subsequent to our letter ref: DS/ES/Presidency/16 dated January 24,
2018 and copied to you, we again observe a lack of response on the part of the
Federal Government to the plight of petroleum marketers, many of whom have
become financially insolvent.”
The Guardian
gathered that the demand became inevitable as a result of buck-passing between
the executive, represented by the Ministry of Finance, and legislators. While
the ministry insisted the sum had been forwarded for legislative approval, the
lawmakers denied receiving any notification.
Last year,
Vice President Yemi Osinbajo directed Minister of Finance Kemi Adeosun to pay
oil marketers all outstanding subsidy claims, estimated at about $2 billion
after verification and study of the legal implication of continued delay.
The
minister, however, noted that although the Federal Executive Council approved
promissory notes for settlement of the arrears and other liabilities inherited
from the previous administration, the National Assembly was yet to approve the
payments.
Having
waited years for the payment, which continues to attract huge bank interests,
the association, therefore, petitioned the Federal Government, noting:
“Marketers
are continually under pressure by banks and the Asset Management Company of
Nigeria (AMCON), with looming threats of imminent take-over of our petrol
stations and tank farms by creditors, labour unions, Nigerian Association of
Road Transport Owners and Petroleum Tanker Drivers (NARTO/PTD), to whom we are
substantially indebted due to past freight services.”
In the light
of the foregoing, the association said it had no option but stop borrowing to
pay staff and immediately commence massive disengagement of staff, as
forewarned in its January 24 letter, where it gave the Federal Government a
21-day notice to pay up.
0 Comments