A Review of the Nigerian Energy Industry

Stakeholder commends FG on payment of subsidy claims to 39 marketers

Ngozi Okonjo-Iweala world bank19 June 2013, Lagos – Mr Adewumi Ilori, a stakeholder in the oil industry, on Wednesday commended the Federal Government for the payment of 2011 fuel subsidy claims of 39 oil marketers.

Ilori, Managing Director, Metib Oil and Gas Limited, told the News Agency of Nigeria, NAN, in Lagos that this would enable marketers to repay loans they took from banks.

NAN recalls that the Federal Ministry of Finance, had on Monday, announced the payment of N192.5 billion subsidy claims to 39 oil marketers for the last quarter of 2012.

The ministry said that the payment was on the basis of claims submitted in batches by the Petroleum Products Pricing Regulatory Agency, PPPRA.

Ilori said: “Most of these oil marketers borrowed money from banks to import the products and the banks are on their necks to recover their money with interests.

“With the payment, the marketers will offload part of the loans they collected from the banks.”

He said that it would also give room for them to invest more in their businesses.

Ilori said that the payment was delayed due to verification of their claims by government to ascertain their genuineness.

The stakeholder urged the Federal Government to also ensure prompt payment of subsequent claims in transparent and efficient manner to protect the interest of Nigerians.

He said that it would be difficult for marketers to continue to import without government repaying them promptly.

Ilori advised government to repair the local refineries for the country to stop further importation of petroleum products.

“It is very sad that a country that is blessed with abundant oil and gas resources is still importing petroleum products,” he said.

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