FG assures N264bn fuel subsidy payment

The Federal Government has assured that the N264 billion outstanding fuel subsidy would be paid to marketers in March, this year.
The payment of the subsidy from 2014 to some part of 2015 is targeted at enabling the marketers to import adequate fuel into the nation.
The Executive Secretary of Major Marketers Association of Nigeria, MOMAN, Mr. Obafemi Olawore said the expected payment would enable MOMAN members to import more fuel for domestic consumption.
“Marketers are also owed N100 billion on foreign exchange and interest rates to date. Last year, marketers were paid the sum of N345 billion for 2013 and part of 2014, while some outstanding is been pending,’’ he said.
Olawore said that Minister of Finance, Dr Ngozi Okonjo-Iweala, met with some stakeholders, including marketers on Monday and promised to ensure payment of all outstanding subsidy claims to date.
He said that the minister had drawn a time table for payment of subsidy claims for marketers, while appealing to all parties involved to keep their promises.
“We pray the minister does not fail on her promised to pay us all, outstanding debt by March ending.
We assure that with the promise of the minister on effective payment of our subsidy money, distribution of petroleum products across the country would commence immediately,’’ he said
The Executive Secretary said that complete deregulation of the downstream sector remains the only way to address importation of products challenges and subsidy payment.
He said that deregulation of downstream would fast track the construction of new refineries in the country.
Meanwhile, Olawore has urged the National Assembly to pass the Petroleum Industry Bill, PIB into law in order to address many challenges in the industry.
Olawore who noted that stocks level of products in many tank farms were low said marketers would start importation as soon as the subsidy was paid.
“But we are going to start importing product and loading all product within our facility to filling station to wet the country with products,” he said.
He said, the Minister of Finance, Minister of Petroleum Resources, CBN Governor were discussing on how to address issues of foreign exchange which also encourage us to commence importation.”
Olawore said that government had assured payment differential on product margin to marketers from products importation.

Source; National Mirror