FG Set To Pay 413 Billion Naira Subsidy Debt

The Federal Government has approved the payment of N413 billion to petroleum products marketers in the country, being the outstanding payment for subsidy claims‎, although marketers insisted they are owed about N470 billion.

The Nigerian National Petroleum Corporation (NNPC) in a statement in Abuja, also said it has injected additional volumes of Premium Motor Spirit, PMS‎, or petrol across the country to boost supply of the product and eliminate the long queues that have resurfaced in many parts of the country.

The statement, signed by the Group General Manager, Group Public Affairs Division‎, NNPC, Mr. Ohi Alegbe, noted that the payment of the outstanding N413 billion subsidy claims to oil marketers is part of the Government’s initiative of zero tolerance to fuel queues nationwide.

“It is our belief that with the outstanding payment due to oil marketers now assured, the marketers and other downstream players will join hands with the NNPC to guarantee that the nation remains wet with petroleum products all year round,” he said.

Meanwhile, the Petroleum Products Pricing Regulatory Agency (PPPRA) revealed that it was yet to be notified of the payment by the federal government.

“Although we have made recommendations on what to be paid to the Ministry of Finance, but have not yet got any feedback,” a top management source at the PPPRA told Vanguard.

Asked whether oil marketers were truly owed N470 billion, as reported, Vanguard quoted the source to have said: “Marketers are entitled to their own opinion, just as we are entitled to our own based on the claim papers we have processed.

“What needs to be asked is, at what point are they making the claim because requests are being made on daily basis.”

“Sometimes, marketers have only just made orders for supply of PMS, and even without dropping one litre of petrol in their tanks, they are already calculating how much they are being owed even without processing their claims.

“So it our duty to verify and certify their claims, on which basis we make recommendations to Finance to pay them.”