Members of the Major Oil Marketers Association of Nigeria (MOMAN) have appealed to the Federal Government to promptly settle their outstanding subsidy debt, which stands at N130.7 billion as at August 2018.
The Chairman of MOMAN, Mr. Andrew Gbodume, has appealed to the Federal Government to settle their outstanding subsidy debt promptly.
Gbodume said that the inability of government to pay the N130.7 billion debt (as at August 2018) has affected the cordial relationship his members have with the banks.
He urged the government to expedite action since the relevant agencies and the National Assembly have audited the debt and approved same for payment since July.
Gbodume said, “But one of the major challenges the Nigerian downstream petroleum sector is still facing is the non-payment of the long outstanding fuel subsidy to oil marketers. We appreciate the efforts of the national assembly but the non-payment creates a significantly negative impact on the operational efficiency of the downstream sector of the oil industry, thereby placing a severe strain on its efforts to continually invest in infrastructure and raise industry standards. We hope that the debt will be paid in full to the oil marketers as soon as possible.”
Gbodume also said marketers are working tirelessly with the Petroleum Products Marketing Company (PPMC) to ensure fuel availability and prevent fuel scarcity that rocked the nation in December 2017.
“We need to move away from the present arrangement because downstream sector needs investment. The banks are not willing to lend to downstream sector because of the present arrangement.
“MOMAN members are not importing petroleum products because no bank is ready to give them loan due to inability to pay the outstanding debts owed by marketers.”