Petroleum marketers urge FG to settle $2bn outstanding subsidy claims

The Depot and Petroleum Products Marketers Association (DAPPMA) has urged the Federal Government to pay the outstanding debts of $2 billion owed marketers on fuel importation.
The Executive Secretary of the association, Mr Olufemi Adewole, made the plea on Thursday in Lagos.
Adewole said that the plea became imperative following the Federal Government’s approval of N2.7 trillion for the payment of contractors, pensioners and oil marketers.
Finance Minister, Mrs Kemi Adeosun, said on July 12 that the Federal Executive Council (FEC) at its meeting approved N2.7 trillion to settle the payment of contractors, pensioners and marketers.
Adewole said that the unpaid claims had greatly hindered business operation of his members and access to credit from financial institutions.
He said that it had led to retrenchment of workers in some distressed companies.
“We are told that payment has been approved to marketers since last week, but we are yet to know when it will be paid.
“We appeal to the Minister of Finance to expedite action on the payment of marketers’ claims to save many of us from indebtedness to the banks,’’ he said.
The association’s scribe urged the Ministry of Finance to carry the marketers along in the reconciliation of accounts for transparency.
He said that the capacity of Major Oil Marketers Association of Nigeria (MOMAN) and DAPPMA to import petroleum products had been reduced.
Adewole said that this was because of the huge unpaid subsidy claims and mature Letters of Credits (LCs) arising from the old subsidy regime.
He said that government should let the marketers know the mode of payment, either by promissory note or cash payment, saying, “the marketers are kept in the dark’’.