N800bn subsidy arrears: Oil marketers deny deal with FG

Oil marketers on Saturday said they did not reach any agreement with
Federal Government on the N800 billion subsidy arrears, saying their
ultimatum to cease depots operations on Monday remained unchanged.

Mr Olufemi Adewole, Executive Secretary, Depot and Petroleum Products
Marketers Association of Nigeria (DAPPMAN), said in a statement in
Lagos that offers by government failed to meet the legitimate demands of
the association.

Adewole said: “We did not sign the purported document with government
as claimed. We still stand by our utimatum which will expire on
Monday.”

The News Agency of Nigeria (NAN) recalls that the Federal Ministry of
Finance on Dec. 6 said that the Federal Government and petroleum
marketers had agreed on the settlement of outstanding claims.

The ministry, in a statement issued by Mr Paul Abechi, Spokesman for
the Minister of Finance, Mrs Zainab Ahmed, in Abuja, assured that
operations at all depots and sales would continue until further notice.

NAN also recalls that the oil marketers had on Dec. 2 gave federal
government seven-day ultimatum to settle outstanding N800 billion
subsidy payment debts, failing upon which they would cease depots
operations.

However, the oil marketers said: “We refer to the press release from
the Federal Ministry of Finance following the meeting with marketers
under the aegis of DAPPMAN, MOMAN and IPMAN and most respectfully refute
its contents with the following clarifications.

“DAPPMAN reiterates that there was no agreement reached because
offers by government failed to meet the legitimate demands of the
association and we did not sign the purported document.

“Hence, our ultimatum stands as we cannot continue to borrow from banks to pay staff salaries.

“DAPPMAN’s demands made to the FG through the Honourable Minister of
Finance and Debt Management Office was to pay cash and the total sum of
indebtedness to marketers within the time frame.

“This was expressed in communications with the government, Ministry and other relevant office.”

According to the marketers, this is to enable them continue in
business, pay staff and not rely on facilities from banks which are no
longer forthcoming.

“We affirm that of all stakeholders, MOMAN, IPMAN and DAPPMAN that
participated in the PSF scheme, DAPPMAN has the largest debt exposure in
the downstream sector.

“DAPPMAN has alerted the FG to this dire situation and specifically
to the challenge our member companies face, leading to our inability to
pay December 2018 salaries to our teeming work force without the
immediate settlement of the debts owed by the FG.

“Most unfortunately, this has not been heeded.

“Since government globally is recognised as a continuum, FG is
obliged to settle all legitimately incurred and verified Sovereign debts
due to marketers promptly,” the oil marketers said.

The marketers stressed that those debts owed to them actually
belonged to banks, their shareholders, depositors and other Federal
Government Agencies such as PPPRA, PEF-M-B, AMCON.

The marketers said banks, in compliance with extant banking
regulations of the CBN, recently swooped on marketers with
non-performing loans, taking over their depots and also cutting off any
form of trading loans to them.

“As a result, thousands of families have lost their means of livelihood.

“Many more marketers will follow suit in the event that FG does not settle these debts to marketers.

“Unfortunately based on the FG, failed promises to address the
sovereign debt which was then less than N350 billion, it has grown to
over N800 billion and still Federal has yet to pay.

“December 2018 makes it 18 months after FEC approval for this payment
and three months after the National Assembly (NASS) approval, yet
marketers have not been paid.

“We emphasise that FG’s proposed payment of promissory notes is not acceptable to DAPPMAN. Will want our money paid in cash.

“This will adversely affect the financial system taking due
cognisance of the futuristic nature of this proposed mode of financial.

“Therefore, as from today, our work force, save for security
operatives, will effective, 7th December 2018 cease to be on our payroll
pending payment of the debt owed by the Federal Government,” they said.